A

Project Report On
“Impact of Advertising on Customers Decision Making
Process”
Project submitted in partial fulfillment of MBA programme at

The Indian Institute of Planning and Management

Jaipur
Project Submitted By : Project Guide

Group: S103 Prof. - Veena Dutta

Group Members:

Arpit Singhal

Amit Singh Rathore

Chetram Sharma

Deepak Choudary

Mohit Kumawat

Nitin Gupta

ACKNOWLEDGEMENT
 In this project report I have made an honest and dedicated attempt to make the research
material as authentic as it could. And I earnestly hope that it provides useful and workable
information and knowledge to any person reading it.

During this small time frame of two months in which the project reached its completion, there
were a few people whom I would like to make a mention of and without whose help the project
would have never seen the light of day.

I also thanks to my internal guide Prof. Veena Dutta for his timely response via e-mail &
personal meeting, which immensely helped in giving the project the initial direction it needed.

I wish to express my thanks to the Indian institute of planning and management, for giving a
chance to us to do this project report on “impact of advertisements on Consumer decision
making process”.

Last but not least, I thank to all those who have helped me directly or indirectly during the
course of this project.
 ABSTRACT

Advertising is a form of communication used to help sell products and services. Typically it
communicates a message including the name of the product or service and how that product or
service could potentially benefit the consumer. However, Advertising does typically attempt to
persuade potential customers to purchase or to consume more of a particular brand of product or
service. Modern advertising developed with the rise of mass production in the late 19th and early
20th centuries. The crescendo of celebrities endorsing brands has been steadily increasing over
the past 20 years or so. Marketers overtly acknowledge the power of celebrity in influencing
buyer's purchase decision. They have firm believe that likeability or a favorable attitude towards
a brand is created by the use of a celebrity. The crore of rupees spent per year on celebrity
endorsement contracts show that celebrities like Amitabh Bachchan, Sharukh khan and Sachin
Tendulkar play an important role for the advertising industry. It is an established fact that
celebrity endorsement can bestow unique features or special attributes upon a product that it may
have lacked otherwise.

Our project deals with the impact advertisement makes on a customer’s preference for a brand
and customer decision making. In other words, how does an ad in a television,radio,newspaper
,hoardings and banners lure a customer to go and purchase the product. Does he purchase
because of the benefits or because he liked the advertisement which has created a positive impact
on him.
Chapter : 1
Introduction to advertising

Introduction
Advertising is the means of informing as well as influencing the general public to buy products
or services through visual or oral messages. A product or service is advertised to create
awareness in the minds of potential buyers. Some of the commonly used media for advertising
are T.V., radio, websites, newspapers, magazines, bill-boards, hoardings etc. As a result of
economic liberalization and the changing social trends advertising industry has shown rapid
growth in the last decade.
Advertising is one of the aspects of mass communication. Advertising is actually brand-building
through effective communication and is essentially a service industry. It helps to forms the basis
of marketing.
Advertising plays a significant role in today's highly competitive world. A career in
advertisement is quite glamorous and at the same time challenging with more and more agencies
opening up every day. Whether its brands, companies, personalities or even voluntary or
religious organizations, all of them use some form of advertising in order to be able to
communicate with the target audience. The salary structure in advertising is quite high and if you
have the knack for it one can reach the top. It is an ideal profession for a creative individual who
can handle work-pressure.
Today, new areas are emerging within advertising like event management, image management,
internet marketing etc. Event management wherein events are marketed, Image management
wherein a particular profile of an individual or an organization is projected. Internet marketing
has also brought about a lot of changes in advertising as Internet means that one is catering to a
select group of audience rather than a mass audience.
Today 'Celebrity Endorsement' has attracted immense debate on whether it really contributes to
the brand building process or whether it is just another lazy tool to make the brand more visible
in the minds of the consumers. Although it has been observed that the presence of a well-known
personality helps in solving the problem of over-communication that is becoming more
prominent these days, there are few undesirable impacts of this practice on the brand.
The issue of matching the values of the celebrity with the brand values is also very important, i.e.
getting the right celebrity to endorse the right brand. Consumers perceive the brand as having
superior quality because it has been endorsed by a credible source. This makes endorsement as
one of the indictors of quality for any brand. Corporate credibility along with endorser credibility
plays a significant role in the attitude of the consumer towards the brand and the advertisement
respectively. On the other hand, the over popularity of the celebrity sometimes overshadows the
brand.

‘Advertising’ is a medium meant to propagate ideas to people using any means of

communication. Liberalization has empowered advertising and has completely changed the
Indian advertising scenario. The major areas touched by advertising are FMCG’s food market,
cosmetics etc.

Advertising is like the two sides of a coin. Sometimes it may seem that advertisements send out
the wrong message or impel people to buy certain products. On the other hand, advertising can
be perceived as a means to sell a product or a service which can improve by competition.

Today, advertising is booming. With the growing markets and competition, it has become an
essential tool to reach the target market as well as the target audience.

Advertisers in India have reached 75 percent of the population, using television as a media
device, and the rest of the population is reached via radio. India, however, favours newspapers,
magazines, television, radio, billboards and business publications to convey messages about
various products. It is the advertising agencies’ advertisements which portray ideas to the
audience – agencies that compete to be ranked as the best. The world’s leading advertising
agencies – Ogilvy and Mather, J. Walter Thompson, BBDO, Lintas, McCann-Ericsson and Leo
Burnett have successfully made a mark in the Indian market. The advertising agencies are ranked
in order of their creativity as well as the expertise to deliver the content and message to the
clientele.

Advertising is a non-personal form of promotion that is delivered through selected media outlets
that, under most circumstances, require the marketer to pay for message placement. Advertising
has long been viewed as a method of mass promotion in that a single message can reach a large
number of people. But, this mass promotion approach presents problems since many exposed to
an advertising message may not be within the marketer’s target market, and thus, may be an
inefficient use of promotional funds. However, this is changing as new advertising technologies
and the emergence of new media outlets offer more options for targeted advertising. Advertising
also has a history of being considered a one-way form of marketing communication where the
message receiver (i.e., target market) is not in position to immediately respond to the message
(e.g., seek more information). This too is changing. For example, in the next few years
technologies will be readily available to enable a television viewer to click a button to request
more details on a product seen on their favorite TV program. In fact, it is expected that over the
next 10-20 years advertising will move away from a one-way communication model and become
one that is highly interactive. Another characteristic that may change as advertising evolves is
the view that advertising does not stimulate immediate demand for the product advertised. That
is, customers cannot quickly purchase a product they see advertised. But as more media outlets
allow customers to interact with the messages being delivered the ability of advertising to
quickly stimulate demand will improve.

INFORM PERSUADE REMIND

UNAWARE AWARENESS INTENT PURCHASE

S
Advertising is only one element of the promotion mix, but it often considered prominent in the
overall marketing mix design. Its high visibility and pervasiveness made it as an important social
and encomia topic in Indian society. Promotion may be defined as “the co-ordination of all seller
initiated efforts to set up channels of information and persuasion to facilitate the scale of a good
or service.” Promotion is most often intended to be a supporting component in a marketing mix.
Promotion decision must be that it may integrated and co-ordinate with the rest of the marketing
mix, particularly product/brand decisions, so effectively support an entire marketing mix
strategy. The promotion mix consists of four basic elements. They are:-

They are:-
 Advertising
 Personal Selling
  Sales Promotion, and
 Publicity
 Advertising is the dissemination of information by non-personal means through
paid media where the source is the sponsoring organization.
 Personal selling is the dissemination of information by non-personal methods,
like face-to-face, contacts between audience and employees of the sponsoring
organization. The source of information is the sponsoring organization.
 Sales promotion is the dissemination of information through a wide variety of
activities other than personal selling, advertising and publicity which stimulate
consumer purchasing and dealer effectiveness.
 Publicity is the disseminating of information by personal or non-personal means
and is not directly paid by the organization and the organization is not the source.

1.1ORIGIN AND DEVELOPMENT OF ADVERTISING

It has been wrongly assumed that the advertising function is of recent origin. Evidences suggest
that the Romans practiced advertising; but the earliest indication of its use in this country dates
back to the middle Ages, when the use of the surname indicated a man’s occupation. The next
stage in the evolution of advertising was the use of signs as a visual expression of the
tradesman’s function and a means of locating the source of goods. This method is still in
common use. The seller in primitive times relied upon his loud voice to attract attention and
inform consumers of the availability of his services. If there were many competitors, he relied
upon his own personal magnetism to attract attention to his merchandise. Often it became
necessary for him to resort to persuasion to pinpoint the advantages of his products. Thus, the
seller was doing the complete promotion job himself. Development of retail stores, made the
traders to be more concerned about attracting business. Informing customers of the availability of
supplies was highly important. Some types of outside promotion were necessary. Signs on stores
and in prominent places around the city and notices in printed matters were sometimes used.
When customers were finally attracted to the store and satisfied with the service at least once,
they were still subjected to competitive influences; therefore, the merchant’s signs and
advertisements reminded customers of the continuing availability of his services. Sometimes
traders would talk to present and former customers in the streets, or join social organizations in
order to have continuing contacts with present and potential customers.
As the markets grew larger and the number of customers increased, the importance of attracting
them also grew. Increasing reliance was placed on advertising methods of informing about the
availability of the products. These advertising methods were more economical in reaching large
numbers of consumers. While these advertising methods were useful for informing and
reminding, they could not do the whole promotional job. They were used only to reach each
consumer personally. The merchant still used personal persuasion once the customers were
attracted to his store. The invention of hand press increased the potentialities of advertising. By
Shakespeare’s times, posters had made their appearance, and assumed the function of fostering
demand for existing products. Another important event was the emergence of the pamphlet as an
advertising medium. The early examples of these pamphlets disclose their sponsorship by
companies want to generate goodwill for their activities. The low cost of posters and handbills
encouraged a number of publishers to experiment with other methods.

1.2 DEFINITION OF ADVERTISING:

The word advertising originates from a Latin word advertise, which means to turn to. The
dictionary meaning of the term is “to give public notice or to announce publicly” .Advertising
may be defined as the process of buying sponsor-identified media space or time in order to
promote a product or an idea.
The American Marketing Association, Chicago, has defined advertising as “any form of non-
personal presentation or promotion of ideas, goods or services, by an identified sponsor.”

The term advertising originates from the Latin word advert ere which means “to turn the mind
towards”. The dictionary meaning of the term advertising is “to give public notices or to
announce publicity”. This suggests that advertising acts as a marketing vehicle and is useful for
drawing the attention of people towards a specific product/ service/manufacturer. Advertising is
an activity or a process while advertisement is a specific piece of communication appearing in
press, radio or TV.
According to the American Marketing Association advertising is defined as “Any paid form of
non –personal presentation and promotion of ideas, goods or services by an identified sponsor”.

According to David Potter “The only institution we have for instilling new needs, for training to
act as consumer for altering men’s values and thus for hastening their adjustment to potential
abundance is advertising.
This definition suggests that advertising is an institution which makes people aware of their
needs and makes them vigilant consumers. Advertising also provides better understanding of life
and brings their adjustment with potential abundance of goods and services.

According to Dun n and Barbon“

Advertising is paid, non-personal communication through various media by business firms, non-
profit organizations and individuals who are in some way identified in the advertising message
and who hope to inform or persuade members of a particular audience.”

This definition suggests that the advertiser identifies himself in the advertisement and the
Purpose of advertising is to inform and to persuade people of a specific type.

1.3 FEATURES OF ADVERTISING:

1. Advertising provides information:

The basic purpose of advertising is to provide information about products, goods, services or
ideas to perspective buyers. The details of products such as features, uses, prices, benefits, other
instructions to be followed while using the product are given in the advertisements.

2. Advertising is a paid form of communication: Advertising may be in any convenient form such
as sign, symbol, slogan, Illustration or message.

3. Advertising is a non-personal presentation: Advertising is non-personal in character as against

Salesmanship which is personal (face to face communication) in character. In Advertising, the
message is given to all and not to one specific individual .e.g. T.V., radio, etc.
4. Advertising is an art, science and profession:
It is an art as it needs creativity for raising its effectiveness. It is treated as science as it has its
principles, rules, etc. Advertising is now treated as profession with its professional bodies and
code of conduct for members.

5. Creativity-the essence of Advertising:

Advertising is a method of presenting a product in an artistic, attractive and agreeable manner.
This is possible through the element of creativity which is the essence of Advertising of the
present period.

6. Advertising is for persuasion:

Advertising is not only for giving information but also for appealing people to buy a specific
product. It aims at persuasion of potential customers.

7. Advertising is target oriented:

It is possible to make intensive Advertising by selecting a specific marketer specific segment of
consumers for the purpose of Advertising. This selection of specific market is called target
market.
8. Advertising is an important element in marketing mix:
Advertising supports the sales promotion efforts of the manufacturer. It can make positive
contribution in sales promotion provided other elements in the marketing mix are reasonably
favorable

1.4 MEDIAS IN ADVERTISING

Advertising is basically for giving information about products and services to consumers.
For a layman, all advertising belongs to one category. However, it is not so. Advertising can be
classified into different categories on the basis of area coverage, audience, media, and functions
and so on. Product advertising, service advertising, financial advertising and so on are also the
types of advertising though the basic purpose of all types is identical that is information and
persuasion of consumers. Advertising is a form of communication that typically attempts to
persuade potential customers to purchase or to consume more of a particular brand of product or
service.
Every major medium is used to deliver these messages, including television, radio, cinema,
magazines, newspapers, video games, the Internet, carrier bags and billboards. Advertising is
often placed by an advertising agency on behalf of a company or other organization.

1.5 Media of advertising:

Media
Commercial advertising media can include wall paintings, billboards, street furniture
components, printed flyers and rack cards, radio, cinema and television adverts, web banners,
mobile telephone screens, shopping cart, skywriting, bus stop benches, human billboards,
magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes
("logo jets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab
doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains,
elastic bands on disposable diapers, stickers onapples in supermarkets, shopping cart handles ,
the opening section of streaming audio and video, posters, and the backs of event tickets and
supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a
medium is advertising.

PRINT MEDIA:
In print media the advertising message is printed on paper. Newspaper and magazines
are two important print media used extensively for advertising purpose. Even direct mail
advertising can be classified as print media. This media has now acquired more importance due
to increase in the number and pages of newspapers and magazines and also due to improvement
in the quality of paper and printing technology used for communicating advertising message.
Print media are useful for indoor advertising. Print media is the most widely used medium of
advertisement used by corporate, households ,manufactures, wholesalers, banks, financial
institutions, automobile industry and many more. This medium of advertisement gives the
advertiser the flexibility to select his target audience, his area of advertisement, his budget and
the timings the ads have to be placed.

a) Newspapers
You must have read Newspapers. In our country newspapers are published in English, Sinhala
and Tamil. These are the sources of news, opinions and current events. In addition, Newspapers
are also a very common medium of advertising. The advertiser communicates his message
through newspaper which reaches to millions of people.
a) Periodicals
Periodicals are publications which come out regularly but not on a daily basis. These may be
published on a weekly, fortnightly, monthly, bimonthly, quarterly or even yearly basis. For
example you must have come across magazines and journals like India Today, Femina, etc. All
these periodicals have a large number of readers and thus, advertisements published in them
reach a number of people
Other/ outdoor Media
All the media of advertising discussed above are mostly used by consumers while they are at
home or inside any room, except radio and newspapers or magazines to some extent. Moreover
in all these media, the consumer has also to spend some money to access the advertisement.
However, there are other media available, where the consumer has to spend nothing and he can
see such advertisements while moving outside. Some of such advertising are hoardings, posters,
vehicular displays, gift items, etc.

Hoardings
While moving on roads you must have seen large hoardings placed on iron frames or roof tops or
walls. These are normally boards on which advertisements are painted or electronically designed
so that they are visible during day or night. The advertisers have to pay an amount to the owners
of the space, where the hoardings are placed.

Posters
Poster are printed and posted on walls, buildings, bridges etc to attract the attention of customers.
Posters of films which are screened on cinema halls are a common sight in our country.

Vehicular displays
You must have seen advertisements on the public transport like buses, trains, etc. Unlike
hoardings these vehicles give mobility to advertisements and cover a large number of people.

Electronic Media
This is a very popular form of advertising in the modern day marketing. This includes Radio,
television and Internet.

Radio Advertising
All of us are aware about a radio and must have heard advertisements for various products in it.
In radio there are short breaks during transmission of any programme which is filled by
advertisements of products and services. There are also popular programmes sponsored by
advertisers.

Television Advertising
With rapid growth of information technology and electronic media, television has topped the list
among the media of advertising. TV has the most effective impact as it appeals to both eye and
the ear.
TV commercials are a popular way to mass-market messages to large audiences. Although this
medium has the ability to reach a high number of potential buyers, it is also one of the most
costly forms of advertising. For example, one 30-second TV commercial during the Super Bowl
cost about $3 million in 2009.
Infomercials are another form of television advertising. The infomercial is different than a
commercial because it is longer, includes more product information, and has more of a personal
tone. Although they are also costly to produce, infomercials are highly effective in creating
impulse buys because of their demonstrative and persuasive nature.
Internet
It is the latest method of communication and gathering information. If you have a computer and
with an access to internet you can have information from all over the world within a fraction of
second. Through internet you can go to the website of any manufacturer or service provider and
gather information. Sometimes when you do not have website addresses you take help of search
engines or portals. In almost all the search engines or portals different manufactures or service
providers advertise their products.
Mobile billboards:

Mobile Billboards are truck- or blimp-mounted billboards or digital screens. These can be
dedicated vehicles built solely for carrying advertisements along routes are selected by clients, or
they can be specially-equipped cargo trucks. The billboards are often lighted; some being backlit,
and others employing spotlights. Some billboard displays are static, while others change; for
example, continuously or periodically rotating among a set of advertisements.
Mobile displays are used for various situations in metropolitan areas throughout the
world, including:
Target advertising, One-day, and long-term campaigns, Conventions, Sporting events, Store
openings and similar promotional events, Big advertisements from smaller companies
1.6 TYPES OF ADVERTISING

Consumer-oriented or persuasive advertising:-

Persuasive advertising surrounds our daily lives telling us to buy particular products or
services. It helps in creating and maintaining regular demand in the market. Persuasive
advertising also helps attract the attention and preference of the customers. It informs the
target audience about the various schemes of the customers. It informs the target audience
about the various schemes of sales promotion.

Informative advertising:-

Purchases of durable products are made once in a life-time. These are often expensive, so the
potential buyer requires detailed information about them e.g. TV sets, refrigerators, air-
conditioners and washing machines. The manufacturers spend a lot on informative
advertising.

Institutional or Corporate Advertising:-

The main objective of this type of advertising is building a corporate image. Corporate
advertising highlights, therefore, the objectives and achievements of a company. Big
companies such as Godrej, Telco, Reliance, JK Cement.

Financial advertising refers to advertisements issued by financial institutions like banks UTI,
GIC, LIC and company’s/corporation’s sale of shares. These advertisements provide
information about investment opportunities, with its attendant risk and benefits.
Classified advertising:-

Classified advertising refers to the messages which are placed under specific or particulars
headings and columns in newspapers and magazines e.g. Situation vacancy for sale and
Matrimonial.

Govt. advertising:-

It is conducted by Govt. Departments/Undertakings to promote public awareness with a view

to overcome social problems like dowry, drinking, AIDS, environmental pollution and
overpopulation. Since such advertising has a social purpose, it is also known as social
advertising.
 Chapter : 2
Consumer decision making process

Buyer decision processes are the decision making processes undertaken by consumers in regard
to a potential market transaction before, during, and after the purchase of a product or service.
More generally, decision making is the cognitive process of selecting a course of action from
among multiple alternatives. Common examples include shopping and deciding what to eat.
Decision making is said to be a psychological construct. This means that although we can never
"see" a decision, we can infer from observable behavior that a decision has been made. Therefore
we conclude that a psychological event that we call "decision making" has occurred. It is a
construction that imputes commitment to action. That is, based on observable actions, we assume
that people have made a commitment to effect the action.
In general there are three ways of analyzing consumer buying decisions. They are:

 Economic models - These models are largely quantitative and are based on the
assumptions of rationality and near perfect knowledge. The consumer is seen to
maximize their utility. See consumer theory. Game theory can also be used in some
circumstances.
 Psychological models - These models concentrate on psychological and cognitive
processes such as motivation and need recognition. They are qualitative rather than
quantitative and build on sociological factors like cultural influences and family
influences.
 Consumer behavior models - These are practical models used by marketers. They
typically blend both economic and psychological models.

Consumer Behavior

Consumer behavior refers to the mental and emotional process and the observable behavior of
consumers during searching, purchasing and post consumption of a product or service. Consumer
behavior involves study of how people buy, what they buy, when they buy and why they buy. It
blends the elements from psychology, sociology, socio- psychology, anthropology and
economics. It also tries to assess the influence on the consumer from groups such as family,
friends, reference groups and society in general

2.1 Model of consumer behavior

Consumers make many buying decisions every day. Most large companies’ research consumer
buying decisions in great detail to answer questions about what consumers buy, where they buy,
how and how much they buy, when they buy, and why they buy. Marketers can study actual
consumer purchases to find out what they buy, where, and how much. But learning about the
whys of consumer buying behavior is not so easy—the answers are often locked deep within the
consumer's head.
The central question for marketers is: How do consumers respond to various marketing efforts
the company might use? The company that really understands how consumers will respond to
different product features, prices, and advertising appeals has a great advantage over its
competitors. The starting point is the stimulus-response model of buyer behavior shown in
Figure . This figure shows that marketing and other stimuli enter the consumer's "black box" and
produce certain responses. Marketers must figure out what is in the buyer's black box.

Model of consumer behavior

Marketing stimuli consist of the four Ps: product, price, place, and promotion. Other stimuli
include major forces and events in the buyer's environment: economic, technological, political,
and cultural. All these inputs enter the buyer's black box, where they are turned into a set of
observable buyer responses: product choice, brand choice, dealer choice, purchase timing, and
purchase amount.
The marketer wants to understand how the stimuli are changed into responses inside the
consumer's black box, which has two parts. First, the buyer's characteristics influence how he or
she perceives and reacts to the stimuli. Second, the buyer's decision process itself affects the
buyer's behavior. This chapter looks first at buyer characteristics as they affect buying behavior,
and then discusses the buyer decision process.

  Consumer purchases are influenced strongly by cultural, social, personal, and psychological
characteristics, as shown in Figure For the most part, marketers cannot control such factors, but
they must take them into account

2.2 Definition of consumer buying behavior:

The aim of marketing is to meet and satisfy target customer needs and wants. The field of
Consumer behavior shows how individual, group and organizations select, buy, use and dispose
of goods, services, ideas or experience to satisfy their needs and desires.

To know consumer behavior and knowing customer is a complex thing. Ideology of customer is
that they may say one thing but do not another. They may behave in a certain way, influenced by
last minute change in their mind.

2.3 Types of consumer buying behavior:

There are four types of consumer buying behavior as under:

1. Complex buying behavior

2. Reducing buying behavior

3. Habitual buying behavior

4. Variety securing buying behavior

1. Complex buying behavior:

Complex buying behavior involves a three-step process. First, the buyer develops beliefs about
their product. Second, he or she develops attitude about their product. Third, he or she makes
thoughtful choice. Consumer engaged in complex buying behavior when they are highly in a
purchase and aware of significant differences among brands. This is usually the case when the
product is expensive, like an automobile.

2. Reducing buying behavior:

After the purchase the customer might experience dissonance that stems from noticing features
or favorable things about other brands. So a marketer should provide supportive information
which buyer feels satisfied.

3. Habitual buying behavior:

Many products are bought under condition of low involvement and the absence of significant
brands differences, e.g. salt. Consumers have little involvement in this product category. They go
to the store and reach to the brand, if they keep reaching for some brands; it is out of habit, not
strong brand loyalty. There is good evidence that consumer have low involvement with low cost
frequently purchase product.

4. Variety securing buying behavior:

Some buying situations are characterized by low consumer involvement but significant brand
differences. Here consumers often do a lot of brands switching, e.g. cookies. The consumer has
some belief cookies, choose brands of cookies without much evaluation and evaluate the product
during consumption. But next time the consumer may reach for other brands out of wish for a
sake variety rather than dissatisfaction.
2.4 Factor affecting consumer buying behavior:

There are four factor affecting consumer buying behavior

1 .Cultural factor

2. Social factor

3. Personal factor

4. Psychological factor

1. Cultural Factors:

Culture:

Culture is most important and fundamental determinant of a person’s want and behavior. A
person acquires a set of values, perceptions, preference and behavior through his or her family
and it leads to behave him a particular way.

Subculture:

Each culture is divided into a smaller sub culture. It includes nationalities, religion, social and
geographic region. There buying process is affected.

Social class:

The social classes refer to several homogeneous groups within society. There is a cast system
where the members of different cast behave in different pattern and can not change their
behavior. People of the same caste are motivated by similar marketing appears.

2. Social Factor:

Consumer is influence by such social factor as reference group, family, social role and status.
Reference group:

Means a group that have a direct and indirect influence on person’s attitude or behavior, e.g.
family, neighbors, friends and they influence in a new behavior, life style, concept, attitude for a
product. E.g. Trousers, Skin fitter, etc.

Family:

From parent a person acquire an orientation towards religion, policies, economics, ambition, love
and gain once life or children will have influence.

Roles and status

Influence by clubs, organization, if he or she member. He or She influenced by status e.g. Vice
president have Mercedes, wears suits, etc.

3. Personal factor:

Buyers decision are affected by age, occupation, life styles

1. With the age purchase decision regarding the products change

2. Occupation also plays an important role e.g. workers will buy cloths which would be
more useful in his work.
3. Life style also leads him to behave on a particular manner
4. Personality of a person will make him to think in a particular way.

4. Psychological factor:

Major psychological factor that influence the person are motivation, perception learning, belief,
and attitude.
Motivation:

Theories that emphasize on the factors which motivate the customer Herzberg’s theory:

Psychological needs like food, water, and shelter, safety needs like securities and protection,
social needs like sense of belong ness, and love, esteem needs and self actualization also affect.

Knowledge:

Knowledge is defined as an individual’s state of awareness and understanding of a person, group,

object institution and ideas. It is necessary in designing of marketing activities and also
awareness should be there.

Attitude:

Attitude is also important to determining behavior. Attitude means to feel or act in a given
manner towards a person, group, objects, and ideas. Customer’s attitude, understanding and
awareness of the product are intimately related. A customer giving preference for a particular
product shows his attitude.

Image:

Product image also play equally important role. In determing the types of image for a product, It
is also important to decides the distinctiveness of the image. The image of the product, company
is established in purchaser’s mind which affects the consumer buying decision.

Intention:

It refers to the anticipated future action of the customer. The plan of the family to purchase car,
and the plan of an organization for the forth coming year are example of intention, e.g. booking a
car in advance visit to departmental stores to purchase a T.V.
2.5 Buyer Decision Process

Now that we have looked at the influences that affect buyers, we are ready to look at how
consumers make buying decisions. The buyer decision process consists of five stages: need
recognition, information search, evaluation of alternatives, purchase decision, and post
purchase behavior. Clearly, the buying process starts long before actual purchase and continues
long after.
Marketers need to focus on the entire buying process rather than on just the purchase decision.
The Process implies that consumers pass through all five stages with every purchase. But in more
routine purchases, consumers often skip or reverse some of these stages. A woman buying her
regular brand of toothpaste would recognize the need and go right to the purchase decision,
skipping information search and evaluation.

• Need Recognition

The buying process starts with need recognition—the buyer recognizes a problem or need. The
buyer senses a difference between his or her actual state and some desired state. The need can be
triggered by internal stimuli when one of the person's normal needs—hunger, thirst—rises to a
level high enough to become a drive. A need can also be triggered by external stimuli. At this
stage, the   marketer should research consumers to find out what kinds of needs or problems
arise, what brought them about, and how they led the consumer to this particular product. By
gathering such information, the marketer can identify the factors that most often trigger interest
in the product and can develop marketing programs that involve these factors.

• Information Search

An aroused consumer may or may not search for more information. If the consumer's drive is
strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the
consumer may store the need in memory or undertake an information search related to the need.
At one level, the consumer may simply enter heightened attention. The consumer can obtain
information from any of several sources. These include personal sources (family, friends,
neighbors, acquaintances), commercial sources (advertising, salespeople, dealers, packaging,
displays, Web sites), public sources (mass media, consumer-rating organizations),
and experiential sources (handling, examining, using the product). The relative influence of these
information sources varies with the product and the buyer. Generally, the consumer receives the
most information about a product from commercial sources—those controlled by the marketer.
The most effective sources, however, tend to be personal. Commercial sources
normally inform  the buyer, but personal sources legitimize or evaluate products for the buyer.
People often ask others—friends, relatives, acquaintances, professionals—for recommendations
concerning a product or service. Thus, companies have a strong interest in building such word-of
mouth sources. These sources have two chief advantages. First, they are convincing: Word of
mouth is the only promotion method that is of consumers, by  consumers, and for consumers.
Having loyal, satisfied customers that brag about doing business with you is the dream of every
business owner. Not only are satisfied customers repeat buyers, but they are also walking, talking
billboards for your business. Second, the costs are low. Keeping in touch with satisfied
customers and turning them into word-of-mouth advocates costs the business relatively little. As
more information is obtained, the consumer's awareness and knowledge of the available brands
and features increases. The information also helped her drop certain brands from consideration.
A company must design its marketing mix to make prospects aware of and knowledgeable about
its brand. It should carefully identify consumers' sources of information and the importance of
each source. Consumers should be asked how they first heard about the brand, what information
they received, and what importance they placed on different information sources.

• Evaluation of Alternatives

We have seen how the consumer uses information to arrive at a set of final brand choices. How
does the consumer choose among the alternative brands? The marketer needs to know about
alternatives evaluation—that is, how the consumer processes information to arrive at brand
choices. Unfortunately, consumers do not use a simple and single evaluation process in all
buying situations. Instead, several evaluation processes are at work.
The consumer arrives at attitudes toward different brands through some evaluation procedure.
How consumers go about evaluating purchase alternatives depends on the individual consumer
and the specific buying situation. In some cases, consumers use careful calculations and logical
thinking. At other times, the same consumers do little or no evaluating; instead they buy on
impulse and rely on intuition. Sometimes consumers make buying decisions on their own;
sometimes they turn to friends, consumer guides, or salespeople for buying advice. Marketers
should study buyers to find out how they actually evaluate brand alternatives. If they know what
evaluative processes go on, marketers can take steps to influence the buyer's decision.

• Purchase Decision

In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the
consumer's purchase decision will be to buy the most preferred brand, but two factors can come
between the purchase intention  and the purchase decision. The first factor is the attitudes of
others. The second factor is unexpected situational factors. The consumer may form a purchase
intention based on   factors such as expected income, expected price, and expected product
benefits. However, unexpected events may change the purchase intention. Thus, preferences and
even purchase intentions do not always result in actual purchase choice.

• Post purchase Behavior

The marketer's job does not end when the product is bought. After purchasing the product, the
consumer will be satisfied or dissatisfied and will engage in post purchase behavior of interest to
the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase? The
answer lies in the relationship between the consumer's expectations and the
product's perceived performance. If the product falls short of expectations, the consumer is
disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the
consumer is delighted.
Chapter : 3
Research methodology
 RESEARCH METHODOLOGY

OBJECTIVES:

 “To Study The Impact of Advertising on Customer Decision Making Process”

RESEARCH METHODOLOGY AND RESEARCH DESIGN:

Primary data:

-Through questionnaire.

Secondary data:

- Through internet, books ,Magazines ,journals ,advertising agencies

Sample Procedure : Random sampling

Sample Size :100

Research design: The research design is the descriptive and the primary data and secondary data
will be studied and analyzed appropriately and interpreted to extract certain facts. Whenever
necessary statistical tools and financial tools like tabulation, graphs etc will be used to present
the findings effectively

SCOPE OF THE STUDY

This project helps in projecting the impact of advertisement on customer’s decision

making process .

LIMITATIONS

1. An in depth study might not be done because of time constraints.

2. The study will be conducted in Jaipur city (Rajasthan)only.
This report is based on primary as well secondary data, however primary data collection
was given more importance since it is overhearing factor in attitude studies. One of the
most important use of research methodology is that it helps in identifying the problem,
collecting, analyzing the required information data and providing an alternative solution to
the problem .It also helps in collecting the vital information that is required by the top
management to assist them for the better decision making both day to day decision and
critical ones.

3.1. Research design:

Research design is the plan structure and strategy of investigation conceived so as to obtain
answers to research questions and to control variance. The research design is adopted in this
project is the Descriptive research . The main goal of this type of research is to describe the data
and characteristics about what is being studied.

There are three types of research design,

1. Exploratory research.

2. Descriptive research.

3. Causal research.

1. An exploratory research focuses on the discovery of ideas & is generally based on secondary
data. It is preliminary investigation which does not have a rigid design.

2. A descriptive study is undertaken when the researcher wants to know the characteristics of
certain groups such as age, sex, educational level, income, occupation, etc. In contrast to
exploratory studies, descriptive studies are well structured.

. A Causal research is undertaken when the researcher want to know the cause and effect
relationship between two or more variables.

3.2 SAMPLE DESIGN

As Part of my interns I did my research work in Jaipur and various other parts of jaipur;
.Sampling Units

 Residential Areas
 Commercial Areas
 Friends & Relatives

3.3 Sampling plan:

 When only some representative items of a population are selected and data are
collected only from these items then this method is known as sampling.
1. Sampling size:
 It is the basic units of the population to be sampled here in the sample size of 100
respondents are taken for carrying out research because of the limited time.
2. Sample unit:
 Sampling units means a specific group which we are going to select for our research.
 I took people of various ages because advertising is generally targeted to the these
people.

3. Sampling method:
Basically there are many sampling methods ,but in this research wehave taken the
random sampling method
3.4 Data sources:

Research is totally based on primary data. Secondary data can be used only for the
reference. Research has been done by primary data collection, and primary data has been
collected by interacting with various people. The secondary data has been collected
through various journals and websites.

PRIMARY DATA:

Primary Data is in which the researcher uses as a base for framing the Questionnaires, which
then highlighted all the important aspects for consideration.

Primary data was collected in the form of questionnaires which is prepared by us to know the
advertising impact on consumer decision making process. The primary data has been collected us
by conducting the survey through questionnaire.
SECONDARY DATA
Secondary data already exist which has been collected by some other person or organization
for their use and is generally made available to the other researchers free or at confectioner
rate.

For the purpose of this research we are using both primary as well as secondary data. Primary
data would be collected randomly from customers watching television on regular basis.
Secondary data would be collected from various magazines, journals, newspapars, books and
internet
3.5. Research measurement tools:

As the source of collecting data will be primary and that would be obtained through survey
method by personal interview. The tool that was used is “Questionnaire.”

Type of questionnaire:

Structured questionnaire

Unstructured questionnaire
A structured questionnaire is a formal list of questions framed so as to get the facts. The
interviewer asks the question strictly in accordance with the pre arranged order.

An unstructured questionnaire is most suitable when motivational factors are involved. The
interviewer ask propping question to get at key motivational. Such questionnaire facilitates the
conducting of interviewer in an informal manner.

Questionnaires were the main instrument for primary data collection.

A copy of questionnaires has been enclosed in the annexure.
In addition to the questionnaire method, data was collected through references given by
investors. In the process respondent’s interest towards particular financial product, body
language, knowledge of financial products were also taken into consideration. Their overall
assessment was done through this method and this was the base that I carried through out while
doing this research in every area.
 Chapter : 4
DATA ANALYSIS & INTERPRETATION

1) Age group of respondents.

 Age group of respondent No. of respondent
20-25 24
26-30 20
31-35 18
36-40 22
41-45 16

chart no. 1 showing the age group of repondent under

survey
16% 24%

20-25
26-30
31-35
36-40
22% 41-45

20%
18%

Figure 1. Field Survey Report

Inference:

The survey conducted shows that most of the respondents were of the age group of 20-25 years
and the least respondents were of 41-45 years.

2. Respondents of different gender.

 RESPONDENTS NO. OF RESPONDENTS

MALE 66

FEMALE 34

chart No. 2 showing the results of male and female

respondent
34%

male
female

66%

Figure 2.Survey Report

Inference :

This chart shows that mostly the male are more interested in advertised products than the female
category.
 3 .Annual Income of the respondent

Annual income No. of repondent

60000-120000 30
120001-180000 16
180001-240000 19
240001-300000 14
300001-500000 12
Above 500000 9

chart no 3. showing the result of annual income of the

repondent
12% 9% 30%

60000-120000
120001-180000
180001-240000
240001-300000
300001-500000
14% above 500000

19% 16%

Figure 3.Field Survey Report

Inference :

This chart shows that mostly the respondents are between the annual income of 60000 to
120000, the second highest annual income group is the 180001 to 240000,
4. From where do you get the information about the product / Brand you purchase ?

Information source No.of respondent

News paper 34
Television 42
Radio 10
Internet 14

chat No. 4 showing the results of the Information source

14%
34%
10%

news paper
Television
radio
Internet

42%

Figure 4.Field Survey Report

Inference:

The respondents said that they got the information about the product from different media like
television,newspaper,radio,word of mouth,etc..According to the survey, television has given
information to 42% respondents,newspaper to 34%, through radio to 10%,internet 14% of
respondents.This shows that a television creates more impact on customers.
 5 . I Rely on advertisements ?

I Rely on Advertisements? No of Respondent

Strongly disagree 3
Disagree 9
Neutral 11
Agree 32
Strongly agree 45

Chart no.5 showing whether the respondent rely on

advertisements
3% 9%
11%
strongly disagree
45% disagree
neutral
agree
strongly agree

32%

Figure5.Field Survey Report

Inference

The respondents were asked whether they believe on advertisements.45% said that they rely on
advertisements and utilize the information given,3% said that they do not believe,32% said that
they sometmes believe if they find the information rational,and 11% Neutral believe.
6 . Do you change your perception of a product by just Viewing the advertisement?

CHANGE OF PERCEPTION DUE TO NO. OF RESPONDENTS

ADVERTISEMENT
Strongly disagree 15
Disagree 9
Neutral 20
Agree 21
Strongly agree 34

Chart No 6 showing whether the customer change their

perception due to advertisements
15%
34%
9%
strongly disagree
disagree
neutral
agree
strongly agree

20%
21%

Figure 6.Field Survey Report

Inference

In this chart the respondents were asked if they change they thinking about a product after seeing
the advertisement.35% respondents said that they change their perception of a product after
seeing the advertisement,21% respondent are agree about the chage of perception,15% said that
they strongly disagree to change,20% said that they ar e neutral and 9% said that it is rarely that
they change their perception after seeing an advertisement
 7 . Do you Purchase a product just by getting attracted to the advertisements?

Purchase of product just getting No of respondent

attracted by advertisements
Yes 48
No 30
sometimes 22

Chart No. 7 showing if the respondent purchase the

product by getting attracted by advertisements
22%

yes
48% no
sometimes

30%

Figure7. field Survey Report

Inference

In this chart the question asked to the respondents was if they purchase a product by getting
attracted to the advertisements. For this 48% said that they purchase only because by watching
the advertisements,30% said that they do not purchase the product by getting attracted to the
advertisements and 22 % said that sometimes they purchase because of the product.

8. Do you Think advertisement is Necessary for your decision making ?

 NECESSITY OF ADVERTISEMENT IN NO. OF RESPONDENTS
DECISION MAKING
Always necessary 40
sometimes 42
Not necessary 18

Chart No 8 Showing how necessary advertisement in

Decision making
18%

40%
always necessary
sometimes
not necessary

42%

Figure 8. Field Survey Report

Inference

In the survey the respondents were asked how much they feel advertisement is necessary in their
decision making.40% said that it is always necessary in decision making,42% said that
advertisement sometimes plays a necessary part when they take a decision,and 18% said that
advertisemnet is not necessary in decision making .

9. What are the factors which influence your decision making process?

FACTORS INFLUENCE DECISION NO. OF RESPONDENTS

 MAKING PROCESS
Product Features 32
Advertisements 20
Cost 18
Opinion of Friends 19
Others 11

Chart No 9 showing the factor which influence decision

making process
11% 32%

19% Product features

advertisements
cost
opinion of froends
others

18% 20%

Figure 9. field Survey Report

Inference

This chart shows what are the factors considering which a respondent will be influenced to
decide to buy a product.32% said that the features of the product will influence them,20% said
that advertisement will influence them to decide as they will get lots of information about the
product,18% said that the cost of the product makes tham decide to buy a product,19% said that
they will go by the opinion of friends and rest 11% said that there may be othrer factors which
will influence them to decide.

10 . What do you look for in an advertisements ?

WHAT YOU LOOK FOR IN AN NO. OF RESPONDENTS

ADVERTISEMENT

Price of product 45
 Benefit of the product 18
Quality of the product 25
offers 12

Chart No 10 showing the respondent look for in

advertisements
12%

45% price of product

Benefit of the product
25%
quality of the product
offers

18%

Figure 10.Field Survey Report

Inference

In the survey the respondents were asked what are the apspect that they see in an ad..45% said
that thay see the price,18% said that they see that benefits shown in tha ad.,12% see the offers
given and 25% see the quality tpof the product shown in the ad..This shows that in larger amount
customers see the price aspect when they see an ad ,

11. What are the things according to you should be highlighted in an advertisement?

WHAT SHOULD BE HIGHLIGHTED IN NO. OF RESPONDENTS

AN ADVERTYISEMENT
 Benefit 13
Tagline 18
Company Name 35
Product Features 44

Chat No 11 showing what aspect should be highlighted

in the advertisements
12%

40% 16%
Benefit
Tagline
Company Name
Product Featurs

32%

Figure 11.field Survey Report

Inference

Through this chart it is shown what are the things that should be given more priorty in an
ad..12% of the respondents said that the benefits of a product should be highlighted,16% said
that the tag line should be highlighted so that the customers can recall and their brand preference
will increase,32% said that company name should be given more priority, ,and rest 40% said that
the features of the product should be highlighted.From this survey we can say that , tag line of a
brand should be brought in lime light so that brand preference of that particular prouct will
increase.

12 . What is your response to repeated advertisement on television and radio

WHAT IS YOUR RESPONSE TO NO. OF RESPONDENTS

REPEATED ADVERTISEMENT
 Like to Watch 38

Don’t like to watch 17

Get Irrited 29

Change The Channel 16

chart no 12 showing the response to repeated

advertisement in TV/Radio media

16%

38%

like to watch
Don’t like to watch
Get Irretated
Change the Channel

29%

17%

Figure 12. Field Survey Report

Inference

In this question the respondents were asked to give a feed back about repeated ads. which are
shown in different media especially electronic media.38% of the respondents said that theylike to
watch ,17% said that they do not like that every moment ads are shown,29% said that they get
irritated and rest 16% said that they change the channel when repeated ads of the same product
comes.
 Chapter : 5
Findings, suggestion ,conclusion

FINDINGS
1) The age group of between 20 -25 are more likely interested in viewing advertisements
2) The males prefer or like to watch / view the advertisements .
3) Most of the respondents like /view the television advertisements compare to other media
of adverting to get the information about the products / brands.
4) 45 of the respondent are depend on the advertisements.
5) 34 of the respondent change their perception about the brand / product due to the
advertisements.
6) 48 of the respondent purchase the products by getting attracted to the advertising.
7) 40 of the respondent says that the advertising is necessary for the decision making .
8) 32 respondents have said that product features influence their decision making process.
9) 45 respondents out of 100 said that they look for the price of a product in an
advertisement.
10)40 respondents said that the product feature should be highlighted in an advertisement.
11)38 respondent says that they like to watch the repeated advertisements.

Suggestions

 Develop more effective advertising campaigns

 The advertisements should be made more creative and for the younger group of people.
 Advertising messages should both be persuasive and reminder-oriented. .
 To employ integrated advertising of their product.
 More budgets could be devoted to TV adverts in view of the consumers’.
 In the advertisements the feature of the product highlighted more.
 Advertising is very important for the product so the firm should concentrate on
advertisements.
 The people / consumer look for the price /cost of the product ,so the price should be
mentioned in the advertisements.

CONCLUSION
 According to this study, it has found out that people notice advertisements and the
awareness level of the brand / product is good only because of advertisements.

 Based on this study I would say television advertisements have more reach to the
people. Customers prefer television in comparison to other media since they get
 both the audio and visual effects .This also proves that customer’s rely on
advertisements shown in media

 Customers of the age group of 20-25 are more interested in advertisements and
brands.

 For an advertisement to be effective the price, the product feature and the company
name should be highlighted. These three aspects create a great impact on product
awareness.

 Hoardings and banners also create brand awareness of a product and are important
to increase brand preference.

Questionnaire

Name :
Gender : Male Female
Age :
Annual income : 60,000 – 1,20,000 120001 - 180000
 180001 – 240000 240001 – 300000
300001 – 500000 above 500000

1) From where do you get the information about the product / brand you purchase?
o News paper
o Television
o Radio
o Internet
2) I rely on advertisements ?
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
3) Do you change your perception of a product by just viewing the advertisement ?
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
4) Do you purchase a product just by getting attracted to the advertisements?
o Yes
o No
o Sometimes
5) Do you think advertisement is necessary for your decision making?
o Always necessary
o Sometimes
o Not necessary
6) What are the factors which influence your decision making process?
o Product feature
 o Advertisement
o Cost
o Opinion of friends
o Others
7) What do you look for in an advertisements?
o Price of the product
o Benefit of the product
o Quality of the product
o Offers
8) What are the things according to you should be highlighted in an advertisements?
o Benefits
o Taglines
o Company name
o Product features
9) What is your reponse to repeated advertisement on television and radio media?
o Like to watch
o Don’t like to watch
o Get irriteted
o Change the channel