Research Methodology MBA (333)

CIA 1

Submitted By,

Revuri Sreeman (1928634)

F1 section
MBA

Under Guidance Of
Dr. Malini V Nair

Institute of Management

Christ (Deemed to be University),

Bangalore.
Introduction:

“Traditional Ads placed into digital just to shout at the consumer” – Michal Reeves

“Traditional Ad Agencies have so much to Unlearn” – Edward Botches

“Traditional Marketing is telling the world that you’re a rock star” – Robert Rose

Definition of Advertisement by Phillip Kotler is that it is a form of paid non personal or personal
presentation of ideas, goods or services by an identified sponsor.

So basically advertising means it’s a communication with the Users or the non-users of a
particular product. And it’s just to share the message with the people about that particular product
or service. Now a days for advertising they are using every possible way like from the radio, Tele
Vision, Print (Newspapers, journals, & etc.), hoardings, Mails, posters, Sponsorships, Internet,
people(celebrities) & etc. And for this advertising there are some companies called advertising
agencies. These agencies help the companies in giving ideas and concepts, making them and then
will advertise them. According to data the recent data worldwide the estimated amount is around
560 billion US dollar.

Traditional Advertisement means that’s a mass media that which sends the commercial messages
to mass audiences. Mass Media is a Paid media. The things which comes under the traditional ads
are like TV’s, Radio, Outdoor bill boards and print media. The main theme of this ads are to do
sales of services and products through convincing communication tactics that influence human
behavior over a long term. Basically promotions create the sales by using short term incentives
that which motivates the immediate sales. Usually traditional ads are well established and easy to
place in the minds of people.
Normally Goods are categorized into 2 types Durable and Non-Durable Durable goods are a part
of consumer products where these type of products are not required to be purchase frequently
because they are made to last for long time. And these durable goods are a little bit higher in price
when compared to the non-durable goods. And as the durable goods are higher in price thank
compared to non-durable goods so the purchasing process will be late and only when they are
confident. When Durable goods are having good sales it means that it is a Positive economy. And
so when there is a slow economy it means the sales of durable goods are slow.

Literature Review

According to the Rithvikaa K & Anitha Ramachander, the consume behavior is as the process
which consists of buying, using, disposing goods, selecting and services from organization to
satisfy their wants. And there are many factors that consumers are get influence and the companies
need to know are reference groups, cultural described factors, economic factors and etc. And also
in order to understand and succeed in both rural and urban markets they need to understand that
purchase process that goes into making purchase decisions by consumers. Rural markets provide
wide array of opportunities because their vast size and changes that have taken place over these
years. The behavior and the characteristics of the both urban and rural consumers are totally
different. And from the study we can say that understanding the consumer’s behavior is the most
important thing for the companies. Understanding the buying behavior will ultimately help to find
the success and the failure of the company. In urban areas the consumers are more impulsive in
purchasing. As consumers are considered as kings so companies need to customize according to
their requirement and according to Nan Zhou, Dongsheng Zhou and Ming Ouyang here the authors
to explain the long term effects of Television advertising on sales of consumer durables and Non-
Durables. In their study they have presented a persistence model that both distinguishes and
quantifies the long term effect of specific underlying marketing actions. And their results shown
that the advertising had long term effects on sales of consumer durables but they were fail to create
the long term effects on sales of consumer nondurables. The results have shown the different long
term advertising impacts on sales for Consumer non-durables and durables. And regarding the
consumer behavior and advertising the vital evolvement of sales is related to the consumer’s level
of involvement on product in making Purchase Decisions. A highly involved consumer will have
a good memory for a message of relevant advertising message. And because of this lag effect there
is no need to be repeated this advertisement message and even this will create a Brand Image in
consumer’s mind successfully. And to a large extent advertising is not expected to make more than
temporary effects. And when the company starts the advertising the superbly pushed up sales tends
to fall down quickly.

In this the Author E.james Jennings & Paul McGrath attempts to showcase the
influence of consumer sentiment on the sales of durables. So consumer sentiment is the most
important predictor of consumer durables. Traditional theories of consumer spending prominent
economic variables such as level of personal income, interest rates, prices and employment skills.
Durable expenditures are often discretionary and postponable. When consumers are uncertain or
fearful regarding their economic futures, saving may increase and this will more likely come as
expense as new durable good. There were also some times where the consumer sentiment fell, to
a minor and short lived thing and that too when no recession followed. Consumer sentiment is
relatively matched to errors in predicting spending on consumer durables.

In this the authors Rex Yuxing, Mngyu Joo & Kenneth C presented on Advertising and Brand
Attitudes: Evidence from 575 Brands over 5 Years. They were able to find only little about how
different types of Ads affect brand attitudes. They have investigated the relationships between 3
Brand attitude variables (perceived quality, perceived value and recent satisfaction) and three types
of advertising (national traditional, local traditional and digital). The data consists of 10 million
brand attitude surveys and $264billion was spent on ads by 575 advertisers in 5-year period. The
findings are the national traditional ads increase perceived quality, perceived value, and recent
satisfaction; (ii) local traditional ads increase perceived quality and perceived value; (iii) digital
ads increase perceived value; and (iv) competitor ad effects are generally negative.

The authors Vikas Tripathi and Kushagra Kulshreshtha researched on how the consumer
preference for electronic consumer durable goods in India. The India is a place where MNC’s are
having ample opportunities to cater variety of products. In this study, firstly the evaluation is made
about the impact of perceived difference among brand equity, price, advertisement, celebrity
endorsement and country of origin on product preference. Secondly the relative importance of
these attributes is being determined using part-worth analysis. Consumer hesitate to purchase the
product which harm the environment or if any celebrity endorses it, who eventually earns bad
name or defamed. The evolution of computers and net has made the customer or consumer more
analytical and aware of what’s happening this improvement have increased the complexity for the
manufacturers in terms of wants and needs of consumers.

Objectives:

1. To find out the how much really Traditional ads are creating impact on Consumer Durable
goods.

2. To find out how much impact the Modern ads are creating on the Consumer Durable

3. To find out which plays an important role while purchasing consumer Durables now a day.

DATA COLLECTION
The data has been collected from the both the sources primary and secondary sources.
PRIMARY DATA: The researcher made questionnaire and circulated among the common people
in the local society.
SECONDARY DATA: collected from websites, Research Articles and other books.

Hypothesis:

Role of Traditional ads as medium on creating significant impact on consumer loyalty towards
consumer durable products.

Research Design:

The current research being carried is descriptive in nature as it attempts to find the impact of
Traditional ads of durable goods towards the consumers, from the data collected from primary and
secondary sources.

The research is designed to be carried out in 2 stages-

In 1st stage, a common survey will be carried out among a particular group of people that comes
under that category and the data collected and it will be of primary source, and will be collected
through questionnaire. And the Questionnaires will be filled by personally or by mailing to people
belonging in the sampling frame. Data will only be collected in the time frame allotted to it.

In the final stage, based on the data collected, and also the data from the other resources will be
taken into consideration that too which are belonged to a particular time frame and used for
analysis. This data will be very useful and the hypothesis testing will be done for finding out the
objectives.

Budget:

As the project requires collecting the primary data from the people who come under that frame
and categorizing and also from secondary sources finding them analyzing them, the total estimated
completion time till concluding it will be around 2 and half months, further this time line can be
divided in 2 parts one is data collection and the other is analysis and conclusion with their estimate
costs and durations.

Phase Duration Estimated cost

Planning and data collection 1-1.5 months Rs. 5000
Analysis, interpretation and 1 month Rs. 3000
Solution framework
Documentation and Submission 15 days Variable

Gantt Chart:
Reference:

1. Rithvikaa, K., & Ramachander, A. (2017). Rural and Urban Consumer Buying Behaviour with
Special Reference to Durable Goods: a Literature Survey. Srusti Management Review, 10(2), 64-
69.

2. Zhou, N., Zhou, D., & Ouyang, M. (2003). Long-term effects of television advertising on sales
of consumer durables and nondurables--the case of China. Journal of Advertising, 32(2), 45-54.

3. Jennings, E. J., & McGrath, P. (1994). The influence of consumer sentiment on the sales of
durables. The Journal of Business Forecasting, 13(3), 17.

4. Du, R. Y., Joo, M., & Wilbur, K. C. (2019). Advertising and brand attitudes: Evidence from 575
brands over five years. Quantitative Marketing and Economics, 17(3), 257-323.

5. Kulshreshtha, K., Bajpai, N., & Tripathi, V. (2017). Consumer preference for electronic
consumer durable goods in India: a conjoint analysis approach. International Journal of Business
Forecasting and Marketing Intelligence, 3(1), 13-37.