Impact of advertisement on the consumer buying behavior A Dissertation Submitted to the Department of Management Sciences, Islamia University Bahawalpur. In partial fulfillment of the requirement for the degree of Bachelor in Business Administration In Finance By Hassan Ali Session of 2011-2015 1 | Page
41
Embed
#1#Impact of Advertisment on Consumer Buying Behavior(Final)
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Impact of advertisement on the consumer buying behavior
A Dissertation
Submitted to the Department of Management Sciences,
Islamia University Bahawalpur.
In partial fulfillment of the requirement for the degree of
Bachelor in Business Administration
In
Finance
By
Hassan Ali
Session of 2011-2015
1 | P a g e
Impact of advertisement on the consumer buying behavior
By
Hassan Ali
A Dissertation
Submitted to the Department of Management Sciences.
Islamia University Bahawalpur
Rahim yar Khan Campus
Bachelor of Business Administer
Approved By
____________________________
Sir Fahad
_____________________________ External Examiner
_____________________________
Internal Examiner
2 | P a g e
Dedication
ToThe Allah Almighty,
The Merciful and The Beneficent,Who gave me health, thoughts and co-operative people to enable me achieve
this goal.And especially to
The loves of my parents,And prayers, which always acted as a
catalyst in my academic lifeAnd made possible my achievements.
To My loving brothers and sistersFor their never ending moral support.
ACKNOWLEDGEMENT
3 | P a g e
“All praise belongs to Allah alone, lord of all the worlds, who created the heavens and the earth
and all that is between the two and indeed in them there are many signs for those who use
understanding”. (Al-Quran)
First of all, I bow my head in the deep gratitude to “ALMIGHTY ALLAH” who endowed me
with the potential and ability to make solid contribution to the already existing ocean of
knowledge. I think that, although, I have attempted every possible measure to make it
presentable, piece of work, yet man is fallible and I am not an exception.
I wish to express my hearties gratitude and appreciation to my worthy research supervisor who is
Sir Mr. Fahad providing this learned guidance. His elegant personality and invigorating
encouragement have always remained a source of inspiration for me.
Last but not the least, I am grateful to my parents for the inspiration and moral support. I would
not be here without their tremendous encouragement and prays.
Hassan Ali
…………………………
Table of ContentsAbsract…………………………………………………………………………………………………………………………………………………….6
Population size:.........................................................................................................................................15
3.2 Area of Sampling:................................................................................................................................15
Analysis and Results:................................................................................................................................18
4.1Reliability and Validity Analysis:.....................................................................................................18
“psychological, touching and corporal actions which people connect with when choosing,
buying, using and arranging of goods and services to satisfy the need and wish. Purchasers are of
two types: customers and business. Both kinds set out via a same decision course to complete
their needs. Wilkie, W. L. (1994).
Appeal of Advertisement:
The appeal is the slogan or need-creating verse used in advertisement. Eye-catching character,
commercial’s keyword/caption and some information adding up to information arrive below the
petition of the advertisement of a particular product. They stimulate the shopper to cure his/her
concentration to the definite brand of creation (Wells et al., 1995).
Acceptance of Advertisement:
Reception is the degree to which, a buyer relies on the advertisement’s information and do
something for that reason, for the demand, keyword / caption, stanza, slogan and a model
personality (Wells et al., 1995). There are six basic values on which publicity run researcher
studied: to attain concentration; to arise curiosity; to build up and maintain that curiosity; to
create aspiration; to provoke action and to produce good will (Shahid, 1999).
13 | P a g e
The sculpt of promotion proposes that to be effectual, any part of convincing statement has to
take its listeners through a chain of phases, every phase being reliant on the achievement on the
last phase (Wilmshurst, 1985; Lavidge& Steiner, 1961; Leckeny, 1976; Colley,
1961).Advertisement is everywhere in everyday of life. Its figures and positions are both
challenged and accepted. Several observed advertising, both the same as the mirror and the
creator of culture. Yet when advertisements put in new resonance and the signs that form
attribute, its words and descriptions reproduce the nearby and the precedent. Others speak
advertising is merely a financial action with one point, i.e., to put up for sale.
It is obvious as of meaning of advertisement that by modifying in times there include being
varied in the way marketing is processed. Though, in spite of all these transform advertising has
forever been a very strong organization, which has constant to pressure our lives since the start
of time (Wright, Warner & Winter 1971; Wells, Burnett & Moriarty 1995; Jugneheimer& White,
1980).Therefore, advertising is a mode of achieving trade efficiency and of maintenance selling
operating cost low down. The technique foundation on “hierarchy of effects” proposes that there
isant informal association between changes in a person’s manner about an invention and person’s
attitude to purchase that creation (Wilmshurst, 1985; Lavidge& Steiner, 1961; Leckenby, 1976;
Colley, 1961).
Advertising is compounded as numerous diverse advertisers attempt to reach lots of different
nature of viewers and several kinds of customers. That’s why there are various forms of publicity
also, so that every type of customers can be tackled. There is not now one sort of advertising; in
fact, advertising is a huge and mixed business and all nature of advertising require the inventive,
innovative post that are intentionally sound and fit bring out (Wells et al., 1995).
Chapter 3
14 | P a g e
3.1 Research Methodology:
We have collected the data from the lower area of Punjab and fill out the 200 the questionnaire
from the general respondent and give the whole analysis. The software which we use for the
whole interpretation is SPSS (statistical package social sciences).
Population size:
To complete the whole research, we the target the population of the southern Punjab only and
then we take the sample of the four cities from them to conduct the whole research.
3.2 Area of Sampling:We have collected the data from the two different cities of the Southern Punjab to analyze the
whole research. These cities are as follows:
Rahim Yar Khan
Sadiqabad
3.3 Questionnaire survey:A questionnaire is a set of different questions that can achieve the needed information and
evidences from the respondent for the research purpose. The requirements and needs of the
research are translated into a set of particular questions. These questions should be easy to read
and understand and respondent should willing to answer it.
15 | P a g e
3.4 Theoretical Framework:
3.5 Hypothesis:H1: There exists the positive and the direct relation among the advertisement and the consumer
buying behavior.
Ho: There exists no relation among the advertisement and the consumer buying behavior.
3.6 Sampling Design:In the sampling design we need to elaborate about the research and explains the following
factors:
16 | P a g e
3. 6 .1 Type of the study: First is the type of the study and we need explains what type of the study is? Our research
belongs to the descriptive statistics because in our research, we find the relationship of already
discovered variables but in a different perspective.
3. 6 .2 Unit of the analysis: The unit of the analysis means from whom you collect the data? The general public who use the
any cellular network is considered to be our respondents and we collect the data from them and
they belong to the six different cities as we mention in the sample size.
3. 6 .3 Study Setting: The next we answer that either we conduct our whole research in the pure natural environment or
not. So, our data collect the data from the general public in the usual working hours and their
response is a natural phenomena because we don’t be able to control the other variable. So, our
research belongs to the field experiment and the pure natural environment, we collect the whole
data.
3.7 Quantitative Research:Quantitative research is also used in the research. This was necessary to collect response in
measureable units. Questionnaires are used for the collection of quantitative data of consumer to
check the impact of independent variables on the dependent variable in Punjab, Pakistan. This
will help to provide facts and estimation that will help to accurately predict the relationship of
independent and dependent variables. Details about the setting and design of the Questionnaire
will be discussed in this chapter later.
17 | P a g e
Chapter No. 4
Analysis and Results:
4.1Reliability and Validity Analysis:
Table 1.0
Cronbach Alpha
Variable Name Cronbach Alpha Number of items
Consumer Buying Behavior 0.68 4
Advertisement 0.805 10
Explanation:
The above table 1.0 shows the reliability and validity of the questionnaire that either the
questions which we asked from the different respondents measures those things that we actually
want to measure the standard value of the Croanch Alpha is 0.60 and value of the each and the
every variable must lie between them.. The consumer buying behavior and the value of the
Croanch alpha for that variable is the 0.68 and this also lies in the acceptable range so the
questions asked about the consumer buying behavior is valid. The last variable is the
advertisement and the value of the alpha for that variable is the 0.805 and this also lies in the
acceptable range so the questions asked about the advertisement valid and reliable.
4.2Descriptive Statistics:The descriptive statistics tell you that where the respondent lays your research and this analysis
also tells you that the reliability of the whole data. This analysis also tells you both the data lies
18 | P a g e
in the acceptable region normally we set a standard for the questions, answers and this is also
known as the “Allowable Error”.
Table 1.1
Descriptive Statistics
N Mean Std. Deviation
Statistic Statistic Std. Error Statistic
CB_behavior 200 3.4775 .08365 1.18305
Advertisement 200 3.7(Placeholder1) .05646 .79844
Valid N (listwise) 200
Explanation:The above table 1.1 shows that we asked 200 questions relevant to the consumer buying
behavior from the different respondents and the mean value lies in the 3.4 which means that the
mostly people are agree with the questions relevant to consumer buying behavior and the next is
the standard error whose value is also lies in the acceptable range and the standard is 0.08 and
that means the questions which we asked about the consumer buying behavior is valid and the
reliable and last is the standard deviation and the value of the this variable is1.18 which exceeds
from the standard and that means that the respondents don’t fill out the questionnaire relevant to
the consumer buying behavior carefully. The last variable is the advertisement the we also fill
out the 200 questionnaire relevant to the advertisement and the mean value of the3.73 which
means that the mostly people are agree with the advertisement questions and the they think
advertisement is good to change the purchase decision of the consumers and the next is the
standard error whose value is the 0.56 which means that the questionnaire is valid and reliable
and the last is the standard deviation whose value is the 0.79 which also lies in the acceptable
range and the variation among the respondents is less due to carefully answers given by the
respondents.
19 | P a g e
4.3 Correlation:The correlational analysis tells the relationship of the different variables which we include in the
research and this also tells us the extent of the relationship either the relationship is positive,
strong positive, negative, strong negative and the no relationship among the variables. The
analysis of the different helps us to reach the desired objectives of the research and also helps us
to prove the hypothesis accepted or rejected.
The below table1.9 shows that the relationship of the different variables and the relationship with
each other. For example in our research one variable is the customer loyalty and its relationship
with the other variables. The person correlation value lies between 0 to +1 and from 0 to -1 the
value between the 0 to 0.5 has a moderate positive relationship with the other variable while the
value lies between the 0.5 and +1 has a strong positive relationship with the other variable and
the value lies between the 0 to -0.5 have the moderate negative relationship and the value lies
between the -0.5 to -1 have the strong negative relationship with the other variables.
H1: There exists the positive and the direct relation among the advertisement and the
consumer buying behavior.
Ho: There exists no relation among the advertisement and the consumer buying behavior.
The above null hypothesis is rejected and the alternate hypothesis is accepted on the bases of the
information available of the correlation table the correlation shows that the positive relationship
exists among the advertisement and the consumer buying behavior and the relationship value
between these variables is 0.475
Table 1.9
CB_behavior Advertisment
CB_behavior
Pearson Correlation 1 .475**
Sig. (2-tailed) .000
N 200 200
Advertisment
Pearson Correlation .475** 1
Sig. (2-tailed) .000
N 200 200
20 | P a g e
Regression :
Regression analysis is performed when we want to check the relationship between the dependent and independent variable. The explanation of the different table is given below:
Table 2.0
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the
Estimate
Durbin-Watson
1 .558a .311 .304 .98687 2.160
a. Predictors: (Constant), Advertisment
b. Dependent Variable: CB_behavior
Explanation:
The above table 2.0 shows that the there is non-auto correlation between the advertisement and
the consumer buying behavior. According to the above table the effect of one variable doesn’t
affect the other variable.
Table 2.1
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
T Sig.
B Std. Error Beta
1
(Constant) -.346 .413 -.838 .403
Consumer buying
behaviour.657 .133 .373 4.934 .000
Advertisment .360 .112 .243 3.215 .002
a. Dependent Variable: CB_behavior
Explanation:
The above table 2.1 shows that the importance of the one variable on the relationship according
to the above table the beta value is approximately 0.373 and this has moderate positive
relationship with the consumer buying behavior and if we want to change the consumer behavior
than there is need to increase the advertisement efforts.
21 | P a g e
Chapter 5
5.1 Conclusion:The conclusion drawn by the whole research is that the customer have the more influence
towards th advertisement than other possible variables. The logic behind this is quite simple in
advertisement the company shows the actor to attract the customer towards them and its more
influential than other medias that’s why companies spend huge amount of their budget to
advertisement. Actually people are more convienced by watching repeated advertisement and
listing from friends than to other sources like direct selling where they don’t even trust the
person carrying product or benefits.Advertisiment has many aspacts and many things in it to do
and attract the customer with most interactive and creative ways of advertising like coca cola
company is adopting emotional and creative advertising strategies to connect with their customer
emotionally. Advertisiment is being trusted because of it source is directly company and the
message being deliverd is carefully tailored to meet the standards of integrated marketing
communication. So all considering the above information and by carefully analyzing the whole
questionnaire we arrive at a point that the advertisiment is more beneficial as compared to the
other variables. No doubt the cost of the advertisement is more than the other possible ways as of
direct selling etc, but companies don’t pay focus on the advertisement while creating and in its
making process, companies usually don’t pay attention (mainly small companies) while creating
advertisement so its not that eye catching and attractive for the final consumer to change his
buying behavior. With the help of advertisement and delivering the complete message to
consumer, consumer perception easily can be changed. Advertisiment is for masses so its
beneficial for the company to deliver the message to target audience with limited resources and
creative ways.
5.2Limitations:The research is conducted in the pure natural environment but the research has the some kind of
the limitations which must be considered while implementing the research.
The data was collected from the general consumer who mostly lies in the age of 20 to 30 so we
can say that the results may be different if we consider the other people who are above the age of
the 40.
22 | P a g e
We only collect the 200 responses from the different people of the different cities of the southern
Punjab so chances of the results may be proven different of collect the more data. We don’t
collect the any data from any company but the research question shown that we must fill the
questionnaire from the company as well so because of that the results may be different from the
above one.
The results have shown that the consumers mostly prefer the direct selling as compared to the
advertisement but we might consider the cost of the company as well and the other factors like
monitoring the performance of the sale people.
5.3Suggestions:After conducting the whole research the main findings are discussed in the conclusion section
but we gave some of the common and valuable suggestions of the company after analyzing the
whole data.
The first is that the advertisiment is better and the it has more positive relationship with the
consumer buying behavior so if we want to change the responses of the general consumer
towards their company side then we might target the advertisment as compared to the other
sources available but companies must consider the other factor like the cost and the other
expenses which incurs.
No doubt the results proves that the advertisment is more beneficial for the company as
compared to the other options available to the company but on the other hand its impossible for
the company to change the consumer buying behavior through advertisement. But if its
conducted and created properly it can be most effective tool to influence the consumer behavior.
23 | P a g e
References:
Aaker, A. D., Batra, R., & Myers, G.J. (1992). Advertising management (2nd ed.). New Jersey: Prentice Hall.
Aaker, A. D., Batra, R., & Myers, G.J. (1996). Advertising management (5th ed.). New Jersey: Prentice Hall.
Ali, M., Fengjie, J. and Qureshi, A. Naveed.(2010), “An exploratory study on consumer buying behavior in Pakistan perspective,” Asian Journal of Management Research, pp 216-228.
Beri G.C. (2008) “Marketing Research” 4th Edition Tata Mc-Graw Hill company.
Bovee, L. C., &Arans, F. W. (1986). Contemporary advertising (2nd ed.). Illinois: Irwin.
Cacioppo, J. T., Haugtved, C. P., & Petty, R. E. (1992). Need for cognition and advertising: understanding the role of personality variables in consumer behavior. Journal of Consumer Psychology, 1.
Chandok Anil (November, 2005) “Impact of Advertisements on Children’s Buying Behaviour”,
Marketing Mastermind, pp. 41-46.Colley, R. (1961). Defining advertising goals for measured advertising results. New York: Association of National Advertisers.
Cotte, J. and Wood, S. L. (2004) “Families and Innovative Consumer Behaviour: A Triadic Analysis of Sibling and Parental Influence”, Journal of Consumer Research, Vol. 31, No. 1. pp. 78-86.
DattaSrinivasa (April, 2008) “Advertisements Do They Match Consumer Preferences?” Marketing Mastermind, pp.59-62
.Duncan T, Moriarty SE (1998). “A communication-based marketing model for managing relationships,” J. Mark. 62(2):1-13.
Engel, F. J., Blackwell, D. R., &Miniard, P. (1986). Consumer behavior. New York: CBS College Publishing.
Engel, F. J., Kollart, T. D., & Blackwell, D. R. (1973). Consumer behavior (2nd ed.). New York: Holt, Rincart Italic and Winston, Inc.
Englis, B. G. (1994). Global and multi-national advertising. New Jersey: Lawrence Erlbaum Associates.
24 | P a g e
Fam Kim-Shyam and Waller David S. (2008) “A Study of Liked/Disliked Television Commercials in India”, Indian Journal of Marketing, Vol. 38, No. 2, pp.3-10.
Farrelly F, Quester P, Mavondo F (2003). “Collaborative communication in sponsor relations,” Corporate Communication: Int. J. 8(2):128-138.
Fine, S. H (1992). Marketing the public sector. New Jersey: Transaction Publishers.
Fox, R.F. (1996), Harvesting Minds: How TV Commercials Control Kids, New Haven, CT: Praeger.
.
Hawkins, D., Best, r. and Coney, K. (2001), consumer Behaviour: Building Marketing Strategy, 8th Edition, McGraw Hills, Boston.
Hawkins, Del I., Roger J. Best, Kenneth A. Coney, and David F. Hawkins. (2001). Consumer Behavior: Building Marketing Strategy (8th Ed.), New York, NY: Irwin/McGraw-Hill.
Hoyer &Macinnis (2003) ‘Consumer Behavior’ 3rd Edition Prentice-Hall of India
In L. Krasner & L. P. Ullman (Eds.). Research in behavior modification. New York: Holt.
Kavitha G. (2006) “A Study on The Effectiveness Of The Advertising Techniques Used In The Personal Care Segment Of Women Consumers”, Indian Journal of Marketing, Vol.36, No. 8, pp. 12-16.
Kojima S, Baba M (2001). Consumer Behavior. Jap. Psychol. Rev., (43):167.
Kotler Philip (2008) ‘Principle of Marketing Management’ 12th Edition Prentice-Hall of India
KotwalNidhi, Gupta Neelima and Devi Arjee (2008) “Impact of T.V Advertisements on Buying Pattern of Adolescent Girls”, Journal of Social Sciences, Vol. 16, No. 1, pp. 51-55.
Latif, Abdul, Saleem, Salman and Abideen, Zain UL. (2011). Influence of Role Model on Pakistani Urban Teenager’s Purchase Behavior. European Journal of Economics, Finance and Administrative Sciences, Issue, 31, pp. 7-16.
Lavidge, R. C., & Steiner, G. A. (1961). A model of predictive measurement of advertising effectiveness. Journal of Marketing, 59-62.
Loudon DL, Bitta DAJ (2002). Consumer Behavior. Tata McGraw-Hill, New Delhi.
Loudon, L. D., &Bitta, D. J. A. (1994). Consumer behavior (4th ed.). New York: McGraw Hill, Inc.
25 | P a g e
Loudon, L. D., &Bitta, D. J. A. (1994). Consumer behavior (4th ed.). New York: McGraw Hill, Inc.
Michael Solomen (2006) ‘Consumer Behavior’ 3rd Edition Prentice-Hall of India
Mooij (2004). Consumer Behavior and Culture. New Delhi: Sage Publications.
Mooij MD, Hofstede, Geert (2002). Convergence and divergence in consumer behavior: implications for international retailing. J. retailing, (78): 61-69.
Moorthy. K., 1974, “Advertising as Information,” Journal of Political Economy, 83, 729–754.
Mowen, C. J. (1993). Consumer behavior (3rd ed.). New York: McMillan Publishing Company, Inc.
Mowen, J. C., & Minor, M. (1998). Consumer behavior (5th ed.). USA: Prentice-Hall, Inc.
Mullen, B. & Johnson, C., (1990). The psychology of consumer behavior. New Jersey: Lawrence Erlbaum Associates.
Munch, J. M., &Swasy, J. L. (1988). Rhetorical question, summarizations, frequency and argument strength effects on recall. Journal of Consumer Research, 48, 78-92.
Nagaraja, B. (2004) “Consumer Behaviour in Rural Areas: A Micro-level Study on Buying Behaviour of Rural consumers in KavaliMandal”, Indian Journal of Marketing, Vol. 34, No. 11, pp. 30-36.
Naikzad, Z. (2009). Effects of advertisement on male vs female buying behavior. Karachi: Preston University.
Nazir, S. (2001). Effects of advertisement on consumer’s behavior. Unpublished M.Sc. Research Report. National Institute of Psychology, Quaid-Azam University, Islamabad.
Nelson, P., 1970, “Information and Consumer Behavior,” Journal of Political Economy, 78, 311–329.
North, E. J. and Kotze, T. (2001) “Parents and television advertisement as Consumer Socialisation Agents for Adolescents: An Exploratory Study”, Journal of Family Ecology and Consumer Science, Vol. 29, No. ISSN 0378-5254, pp. 91-98.
Robertson Thomas and Rossiter John (1977) “Children’s Responsiveness to Commercials”, Journal of Communication, Vol.24, No.4, pp. 101-106.
Russell, J. T., & Lane, W. R. (1996). Advertising procedure (13th ed.). USA: Prentice Hall Inc.
26 | P a g e
Russell, J. T., & Lane, W. R. (1996).Advertising procedure (13th ed.). USA: Prentice Hall Inc.
Saksena, G. (1990) “Advertising through T.V., Social Implications”, Journal of Indian Institute of Mass Communication”, Vol. 25, No. 1, pp.44-49.
Sangwan, A. (2008). Effects of consumer buying behavior towards advertisement. Maharaja Agrasen Institute of Management and Technology.
Sashidhar, A. S. and Adivi, S. (September, 2006) “Advertising to Kids Is It Justified?” Advertising Express, pp. 12-16.
.
Schiffman&Kanuk (2006) ‘Consumer Behavior’ 10th Edition Prentice-Hall of India
Sehrawet, M. and Kundu, S. C. (2007) “Buying behaviour of rural and urban consumers in India: the impact of packaging”, International Journal of Consumer Studies, Vol. 31, No. ISSN 1470-6423, pp. 630-638.
Appendix:
27 | P a g e
Questionnaire
Dear respondent I am the student of the Islamia University Bahawalpur(RYK campus). My research topic is the “Impact of advertisement on the consumer buying behavior” for the completion of my degree. All the information given by you is kept secret. No data is given to any company. All the data is used for the academic purpose only.