THE BUSINESS SCHOOL

UNIVERSITY OF JAMMU

IMPACT ON ADVERTISMENT ON
CONSUMER BUYING DECISION OF
LUXURY GOODS
COURSE NO. – PSMBTC208
SUBMITTED BY: SUBMITTED TO:
ANSHIKA SHARMA (12) PROF. GARIMA KOHLI
ARCHIT MAHAJAN (14)
ARUSHI JANDIAL (16)
SHREYA GANDOTRA (36)

1
 CONTENTS
S No. TOPICS PAGE No.

1 CERTIFICATE 4
2 ACKNOWLEDGEMENT 5
CHAPTER 1
3 INTRODUCTION 6-17
 ADVERTISING
 IMPACTS OF ADVERTISMENT
 LUXURY GOODS
 ADVERTISING STRATEGIES USED
TO INCREASE SALE OF LUXURY
GOODS
 IMPACT OF ADVERTISEMENT ON
LUXURY GOODS
CHAPTER 2
4  REVIEW OF LITERATURE 18-28
 OBJECTIVES OF THE STUDY
 HYPOTHESIS OF THE STUDY
 RESEARCH DESIGN OF THE STUDY
 SOURCES OF DATA
 SAMPLE DESIGN
 RESEARCH INSTRUMENT
 LIMITATIONS
 SCOPE OF FUTURE RESEARCH
CHAPTER 3
5  DATA ANALYSIS AND INTERPRETATION 28-47
(includes BAR GRAPHS, PIE CHARTS,RADAR
CHART, MEAN, STANDARD DEVIATION,
COFFECIENT OF VARIATION,PERCENTAGE)
  HYPOTHESIS TESTING
CHAPTER 4
6 FINDINGS, SUGGESTIONS AND CONCLUSION 48-51
ANNEXURE
7  QUESTIONNAIRE USED FOR MARKET 52-58
RESEARCH
 REFERENCES
 CERTIFICATE

This is to certify that the project titled “THE IMPACT OF

ADVERTISEMENT ON CONSUMER BUYING DECISION OF
LUXURY GOODS” by ANSHIKA SHARMA, ARCHIT
MAHAJAN,
ARUSHI JANDIAL and SHREYA GANDOTRA submitted to The
Business School, Jammu University, for the award of degree of Master
of Business Administration (MBA) contains the original work done by
her under my supervision and this work has not been submitted
elsewhere for the award of any other degree.
The conduct of the candidate remained satisfactory during this project.

SUPERVISOR
PROF. GARIMA KOHLI
 ACKNOWLEDGEMENT

On the very outset of this report, we would like to extend our sincere
and heartfelt obligation towards the entire personages who have helped
us in this endeavour. Without their active guidance, help, cooperation
and encouragement, we would not have made headway in the project.

We are extremely thankful and pay our gratitude to our faculty MRS.
GARIMA KOHLI for her valuable guidance and support on completion
of this project. We extend our gratitude to THE BUSINESS SCHOOL,
JAMMU UNIVERSITY for giving this opportunity.

We also acknowledge with a deep sense of reverence, our gratitude

towards our parents and members of our family, who have always
supported us morally as well as economically. At last but not the least
gratitude goes to our friends who directly or indirectly helped us to
complete this project report.

Thanking You

ANSHIKA SHARMA

ARCHIT MAHAJAN

ARUSHI JANDIAL

SHREYA GANDOTRA
CHAPTER - 1
 INTRODUCTION

Advertising is a form of communication which is used to persuade a

specific group of people to take some new action. Advertising is
considered as a major and important element for the economic growth of
the marketers and different companies in competition. Advertising is
usually a paid form of publicity by some sponsor and reached through
various traditional media such as television, commercial radio
advertisement, outdoor advertising, newspaper, magazine mail or
modern media such as blogs, websites and text messages. Furthermore
the developments and technological advancements have turned
advertising to a more pervasive and powerful in its impact and affect.
Early advertisers assumed that advertising is very powerful what is said
gets through and strongly achieves the intended and persuasive
objectives. Advertising was introduced by Egyptians who used
Papyrus for sales
messages and wall posters, billboards, signboards and outdoor
advertising as the most ancient form of advertising. The tradition of wall
painting and wall chocking is found in the ancient culture of Greece and
Romans and as well in India, which could be now seen in many, parts of
the world as well (Kotler & Armstrong, 2008). Modern advertising is
developed with the development of mass production in the late 19th and
early 20th centuries. After the success of print advertising, the idea of
radio advertising prevailed this was then followed by the television
advertising. In the early 1950s the Du Mont Television Network initiated
the trend of giving advertisements. With the advent of 21st century the
online(social media, email, goggle ads, mobile, instant messaging etc)
advertising has prevailed the world market and consumer community as
well. Now the advertising has proved its effects and impact on
consumers’ buying behaviors and marketers needs all over the world.
After 1920, advertising
became a source of guidance for consumers, which was considering not
only a source of guidance for buying but also in the matters of social
roles, improvement in dressing sense, style and development of taste of
good foods (Bell, 1976; Marchand, 1985). Consumers buying behavior
has always been given so much importance and space in the literature
study of impact of advertising regarding its effectiveness. Most of the
time consumers buying behavior is influenced by liking or disliking of
consumer towards the advertisement of the product, advertised (Smith et
al., 2002). Likewise, Allen. Et al., (1992) argue that it is actually the
emotional reaction which is developed after the advertising, for the
product advertised, that influences the consumer behavior. In the words
of Gorn, 1982, the consumer behavior towards a product is totally
depending on advertising, without any assessment of the quality of the
product. Furthermore, Controversies over the impact of advertising on
the consumer’s buying trends and habits has always been present
(George, 1989).
Sometimes the advertisers over exaggerate about the product’s benefits
in such a tactful manner that consumer goes psychologically under the
pressure of advertising persuasiveness and intentionally decides to buy
the advertised product (Smith et al., 2006). In the point of view of some
people, now most of the consumers avoid the advertisement, because
they consider the advertisement, just annoying and misleading (Bishop,
1997). Advertisements have been attacked on psychological,
sociological, aesthetic and political grounds. From the point of view of a
common lay man, what is the purpose of advertising? Some critics even
criticize and consider advertising very harmful to the collective
behaviors of the society (Barbara, J. P 1997). But defenders of
advertising always give a strong argument in its favor that basic aim of
advertising is to sell the products, rather its effects on cultural values of
the society (Gold, 1987).
There is a general point of view of many societal members, that
advertising may have a negative, unintended or intended influence on
consumers’ buying trends (Burr and Burr 1977 and Verbeke, W. 1992).
Actually advertising has a strong potential on changing our social
values, as well our buying behaviors through influencing our cultural
values (Schudson, 1984). Specifically, advertising may lead a consumer
to prefer material objects over more morally and socially oriented
alternatives; it may potentially increase conflict and lead to an unhappier
and a more disappointed person of the society (Goldberg and Gom
1978). While the major aim of advertising is to give something new,
creative and useful to get long term benefits of brand loyalty and image
building of the product and company by establishing an emotional
relationship and
persuasion for buying that product. This is also a debatable issue that
which kind of impact of advertising effects the beliefs and collective
attitudes of the consumer with respect to the
buying behavior (Barbara, J. 1997). In the modern times, it’s really
difficult to be successful in persuasion and to mould or effect the buying
behavior of consumer in this era of tough competition (Robinson, 1997).
With the success of advertising field, now it has been admitted as
a universal factor that advertising plays a very influencing role in the
consumers’ behaviors (Beil & Bridgewater, 1990).

In today’s business world, marketing processes are based on the

interaction between a business and the consumers. Advertising has been
considered as a popular management tool for dealing with the highly
rapid technological changes and also the marketing changes in today’s
competitive markets, and this management tool refers to the reanalysis
and re-designs of tasks and also processes inside and outside the
organization. Advertising industry is a social institution born to full fill
the human needs to require and send information about availability of
product, brand and service. Of late, there has also been a widespread
feeling that advertising is a form of communication, meant to exploit the
consumers. Further it is often criticized as being generally profit oriented
and business houses are label as marketing shared who are developing a
perfecting technique to defraud customers through misleading
advertisement. The objective of advertisement is to study the Impact of
advertisement on buying behavior. It is found that there is no
relationship between age of the respondents and level of impact of
advertisement and there is no relationship between income and
satisfaction with advertised product at the time of using.

THE IMPACT OF ADVERTISMENT

 POSITIVE IMPACT

There are many positive effects of advertising both for the company and
the consumers. And some of those positive effects are mentioned below.

1. Social Benefits

There are many social benefits which advertisements can provide. For
example, advertisements can highlight various social issues and promote
free speech in nations where it might still be suppressed. This is a very
important effect of advertisement. It is also important to remember that it
is the freedom of speech and advertising-supported content which are the
promoters of various social changes.

2. Economic Benefits

According to research, advertisements can make companies and

businesses compete to provide higher quality products and services. This
ensures that more high-quality products and services are available in the
markets which are able to meet the needs and requirements of all
customers. This is a very important positive effect of advertisement.

3. Free Entertainment
Another important effect of advertisement is that it provides all viewers
with a free form of entertainment without getting anything back as a
guarantee.

4. Mass Communication

The most important effect of advertisement is that it has enabled the

various forms of mass media to exist in the form which it does today.

These are the biggest positive effects of advertising.

 NEGATIVE IMPACT

In this last section, readers will be able to learn about the negative
effects of advertisements. And some of those negative effects of
advertisements are mentioned below.

1. Misrepresentation

All advertisements tend to display the products and services in the best
possible light. And many advertisements often tend to cross the line of a
little exaggeration to utterly falsely representing the product or the
service. There are many government organization which charges hefty
fines for misrepresentation.

2. False Image

Advertisements tend to invade all possible spheres and because of that

one can often develop a false image. This false image also often tends to
make an individual feel bad about himself or herself. This is also one of
the negative effects of advertising to children.
3. Unrealistic Expectation

This negative effect is common in case products which tend to

exaggerate regarding its effectiveness. It sets unrealistic expectations
which are hard to meet.
LUXURY GOODS
In economics, a luxury good (or upmarket good) is a good for which
demand increases more than proportionally as income rises, so that
expenditures on the good become a greater proportion of overall
spending.
Luxury goods are in contrast to necessity goods, where demand
increases proportionally less than income. Luxury goods is often used
synonymously with superior goods and Veblen goods.
The word "luxury" originated from the Latin word luxus, which means
indulgence of the senses, regardless of cost.

Market characteristics

Luxury goods have high income elasticity of demand: as people become

wealthier, they will buy proportionately more luxury goods. This also
means, however, that should there be a decline in income its demand
will drop more than proportionately. Income elasticity of demand is not
constant with respect to income, and may change sign at different levels
of income. That is to say, a luxury good may become a necessity good or
even an inferior good at different income levels.

Some luxury products have been claimed to be examples of Veblen

goods, with a positive price elasticity of demand: for example, making a
perfume more expensive can increase its perceived value as a luxury
good to such an extent that sales can go up, rather than down.

Although the technical term luxury good is independent of the goods'

quality, they are generally considered to be goods at the highest end of
the market in terms of quality and price. Classic luxury goods include
haute couture clothing, accessories, and luggage.[3] Many markets have a
luxury segment including, for example, automobile, yacht, wine, bottled
water, coffee, tea, foods, watches, clothes, jewelry, and high fidelity.
Luxuries may be services. The hiring of full-time or live-in domestic
servants is a luxury reflecting disparities of income. Some financial
services, especially in some brokerage houses, can be considered luxury
services by default because persons in lower-income brackets generally
do not use them.

Luxury goods often have special luxury packaging to differentiate the

products from mainstream competitors.

ADVERTISING STRATEGIES USED FOR MAKING SALE OF

LUXURY GOODS

Advertising for luxury brands tends to focus on, well, luxury. The
happiness they inspire. The quality. The sheer opulence that becomes a
piece of one’s life when he or she buys free-range leave-in conditioner
infused with dolphin tears, or an ornate bottle of some top-shelf
botanical cordial.

Whether you’re storyboarding a TV spot or building out an ad group in

Google Ads (the artist formerly known as AdWords), your target
audience needs to feel as though your product or service is a physical
manifestation of luxury.

Notice the language used. “Timeless” and “luxury” and “performance”

and “prestige.” There’s an undeniable sense that a Rolex is opulence
incarnate and an implication that if you manage to wrap one around your
wrist, you are elite.

Now, you may not be as recognizable as Rolex, but we can show you
how to leverage the same tactics and then some so that you can use PPC
to grow and market your luxury brand.
The top five strategies for advertising luxury brands are :

1. Exclude unqualified audiences using words like "cheap" and "free"

from viewing your ads
2. Advertise on Bing to capture their older, more affluent user base
3. Attract the right customer with elevated ad copy
4. Target ads based on user income level
5. Use dynamic remarketing to lure prospective buyers back

1) Account-Wide Negative Keywords

The first, and easiest, strategy for marketing your luxury brand is classic
“addition by subtraction.” You’re probably already incorporating
negative keywords into your optimization routine, but did you know you
can save time by uploading them at the account level?

Example : Say you sell shoes hand cobbled by the finest artisans in all of
Montana. While the keyword “shoes” will certainly yield traffic, and
some of those searchers may very well be interested in buying your
exceptional kicks, the overwhelming majority of that traffic falls
outside of your target demographic. This becomes even more of an
issue as you begin to consider keywords with modifiers. “Cheap,”
“sale,” and the dreaded “free” are all words that, when appended to a
query, ostensibly eliminate a searcher as a prospect.

2) Make Bing a Priority

For the majority of search marketers, Google advertising is the be-all-

end- all. Bing and other networks (Yahoo Gemini among them) tend to
exist in their arsenal complementarity, if at all. Generally speaking, this
is a bad idea. For luxury brands, it’s a cardinal sin.

Yes, for the most part clicks on Bing are cheaper than they are on
AdWords. This is awesome. But the network’s real value is the fact that
you can get an additional 118 million eyeballs (a third of which have are
attached to six-figure incomes) on your luxury goods.

3) Elevate Your Ad Copy

Expanded Text Ads are now our reality, and there’s never been a better
time to market your high-end product using the power of paid search.
With all that extra space comes the ability to differentiate yourself from
the rest of the SERP with language instead of relying solely on brand
recognition. After all, even when you’re bidding on branded keywords,
there’s a good chance you’ll be competing with third party distributors
and your direct competitors. The copy you use in your text ads will be
the difference between earning a prospect’s click and watching them
scroll on by.

Today, though, with the addition of a second headline and more space in
the description (plus the URL pathways), you can parlay your brand’s
unique sales proposition without truncation. You can wrap it in enticing,
alluring, wholly irresistible copy. Don’t just tell your prospects to buy
now: tell them why they have no other choice.
4: Use Income Targeting

You’ve written ads to catch the eyes of affluent searchers. You’ve

negated keyword modifiers that imply discounted pricing. Now let’s
dive into income-based geo targeting.
This is another truly phenomenal way to cut wasted spend and ensure
the ads you’re paying for end up in front of the right people. How do
you make that happen? Simple.

In the “Location Groups” tab you’ll find three different options:

 “Places of interest”- Eh.

 “My locations”- Good if you’ve got brick and mortars.
 “Demographics”- We have a winner!

The demographics tab focuses on just one thing: approximate household

income.

According to Google, income-based location targeting is “based on

publicly available data from the US Internal Revenue Service (IRS),
advertisers are able to target ads to certain areas according to their
average household income.”
When you created a customer profile, detailing your ideal consumer,
average household income was probably something you considered. It’s
part of how you determine what you sell and how you sell it. Now you
can leverage IRS data to help you to discover and advertise to these fine
folks.

And the best part? You can layer income-based targeting with your other
location targeting for maximal effect. This means you don’t have to
wholly exclude areas that fall outside of those designated as having
higher household incomes; you can create separate campaigns (ensuring
your budget is skewed towards geos in which the likelihood of your
ideal prospects living there is greater) or just use bid adjustments.
 5: Nurture Paid Traffic with A Personal Touch

Remarketing is good. Dynamic Remarketing is better.

It makes me think of the brand, sure. It makes me stoked on their shoes.

Heck, I may even roll over to the New Balance site once this sentence is
finished to peruse their wares. As a remarketing ad, this is okay.

IMPACT OF ADVERTISMENT ON LUXURY

GOODS
The purchase of luxury products are seen less dependent on
advertisement as compared to the normal goods and the reason for this
can be as below:
 They are more expensive than normal goods and thus require
more consideration before purchase.
 It has some value beyond money that is it is afflicted with social
value also.
Thus generally it is seen that people tend to study a lot before spending
money on the luxury goods. They are less influenced by the
advertisements.
CHAPTER – 2
REVIEW OF LITERATURE
Awan et al. [1] explains the factors likewise necessity of advertisement,
pleasure of advertisement, dominance of advertisement, brand recall
advertisement, and stimulation of advertisement. These are very helpful
in creating and shifting the consumer’s buying behavior that is a very
positive sign for the advertising and marketing companies. Our results
also proved the model of the study which reveal that advertisements
have significant impact on the consumers ‘buying behavior and widen
their choices. This study will definitely be proved helpful for the
marketing and advertising companies to promote their products in the
light of our empirical results. Sathya and Indirajith [2] conveys that the
consumer buying preferences are rapidly changing and moving towards
high-end technology products with acculturation. Products which were
once considered luxury items have become a necessity because of the
changing lifestyle and rising income levels. With growth in disposable
incomes, the demand for high-end products such as television, washing
machine, refrigerator, and air conditioners has increased considerably. It
is also facilitated by the easy availability of finance and prevalence of
nuclear families. Increasing in demand for consumer durable in the
market the fall in prices as Indian consumers are continue to attach a
high degree of importance to value for money. Kumar and Gupta [3]
concluded that all marketing starts with the consumer. So consumer is
very important to a marketer. Consumer decides what to purchase, for
whom to purchase, why to purchase, from where to purchase, and how
much to purchase. In order to become a successful marketer, he must
know the liking or disliking of the customers. The study of the consumer
preference not only focuses on how and why consumers make buying
decision, but also focuses on how and why consumers make choice of
the goods they buy and their evaluation of these goods after use.
Kalaiselvi and Muruganandam [4] consumption trends differ from
similar income households in urban areas to rural areas significantly.
Before the liberalization of Indian economy, in Indian white goods
markets, reputed companies like Godrej, Videocon, Kelvinator, BPL,
Voltas and Allwyn had the major market share. After liberalization,
many foreign players like
Whirlpool, LG, Sony, Samsung, IFB, and Aiwa had entered into the
market. This opening created a dramatic change in the white goods
market. Fatima and Lodhi [5] revealed that Advertisement helps the
company to create the awareness in their customers and ingredients the
advertisements shape the perception of the customers either in the
positive or in a negative way. People can perceive the quality of the
products by gathering the information which they usually get through
advertisements. The perception of the quality, awareness of the product
and consumer opinion drives the consumer buying decision. Study
critically evaluates these factors which shape the buying behavior and
provides the deep insights towards the role of advertisements shaping the
consumer behavior. Johar [6] explained that the character, behaviour and
attitude of consumer are the important dimensions in the decision-
making process. All the purchases made by a consumer follow a certain
decision-making process. A consumer is one who does some physical
activities and deliberates to take decisions concerning purchase and to
dispose of on to evaluate products and services. Purchase decision
process which is characterized as more complex in its nature, has been
subject to research often, only recently.Hemanth Kumar [7] defines
marketing personnel are constantly analyzing the patterns of buying
behavior and purchase decisions to predict the future trends. Consumer
behavior can be explained as the analysis of how, when, what and why
people buy. Adithya [8] concluded that the usage of new tools and
techniques brought about revolutionary changes in the production
ofgoods. The most important thing is to forecast where customers are
moving and to be in front of them. The current scenario shows many
developments and changes taking place around us with all the industries
and firms within each industry trying to keep pace with the changes and
diverse needs of the people. Sonkusare [9] defined consumer is one who
consumes the goods and services product. The aim of marketing is to
meet and satisfy target customers’ needs and wants. The modern
marketing concept makes customers the center stage of organization
efforts. The focus, within the marketing concepts is to reach target and
largest customers, sets the ball rolling for analyzing each of the
conditions of the target market. Television advertising is a very effective
tools of communicating message
to its target audience as it has the ability to combine visual and audio
communication and thus this makes advertisements is an important
medium to make people aware of any products. Harfoushi and et al. [10]
said that Internet is becoming a new way to shop different products or
services online. Although, it is a desire situation for everyone to touch
the products that he/she wants to buy. However, Internet is playing a
wider role in making the shopping more easily as it is never before. The
web makes shopping much easier, and nowadays shopping is not more
than away from a click. A latest term is introduced that is known as
“Online Shopping”. Consumers can directly shop product or services
from the sellers without any interaction of intermediate parties. Just like
other direct marketing channels such as television and catalogs, Internet
is also becoming a significant marketing channel. The Internet supports
two-way communications between consumer and merchant. The web
provides interactive shopping channel, which is not bounded by time and
geographical condition. Sindhya [11] concluded that while
advertisements often include information that cross cut all personality
profiles, some consumers ignore some of this information and rely
primarily on advertising claims and on personal experience in forming
judgments about advertised products. On the other hand, some
consumers defer decisions until the advertising claims have some
credibility behind them before making product purchase decisions.
Lahoti and Jacob [12] revealed that the success of a brand in the Indian
rural market is as unpredictable as rain. It has always been difficult to
gauge the rural market. Many brands, which should have been
successful, have failed miserably. More often than not, people attribute
rural market success to luck. To understand the rural market dynamics, it
became necessary to study the behavior of the rural population hence the
study is undertaken. Lamarreand et al. [13] inferred that innovative
businesses that have successfully integrated e-commerce in their
marketing activities now see mobile marketing as the next exciting
opportunity that will enable them to reach their consumers through a
new communication channel. Amutha and Sulthana [14] said that the
attitude of people in Chennai city has become changed due to various
reasons such as updated technology, improved status and influence of
reference group. Advertisement is
nothing but an important sales promotion strategy. From the findings of
the study among lower income groups: Price was a major consideration
and in middle income group, brand reputation was one of the most
important influencing factors. Zeb and Ashib [15] concluded that the
influence of brand on consumer buying behaviour is a very vigorous
subject performance of and is of great importance in Coimbatore.
Fashion industry includes clothing, footwear and other accessories like
cosmetics and even furnishing. The focus of this research is on clothing
segment. In terms of spending on clothing, age is a stronger determinant
of women`s budget that their socioeconomic status. Owolabiand et al.
[16] defined that the impact of advertising on the sales of insurance
products in Sub- Saharan Africa. Advertising is a marketing strategy
commonly employed by company operating in a competitive
environment. No other promotional tool offers such a large audience
advertising. The cost of reaching people through advertising is very
reasonable. In addition, advertising can also be valuable as a means of
familiarizing buyers with the products or reminding them of its
existence, thus, it is a worthwhile activity and should be made a core
aspect of the company’s marketing programme. It can be said to be
agreed that there was a positive correlation between advertising
expenditure and sales of insurance products which implies that an
increase in the advertisement of the products lead to an increase in sales.
Tatt [17] inferred that shopping itself is a form of self expression. People
define themselves through their shopping. A brand is a name term, sign,
symbol or design or a combination of them, intended to identify the
goods and services of one seller or group of sellers and differentiate
them from those of competitions. A brand faction is to create awareness,
reputation, and prominence and so on in the market place. Brand creates
value for both the consumer and the firm. Consumers brand associations
are a key element in brand equity formation and management. Abayia
and Khoshtinat [18] explained that the impact of advertising for
attracting the consumer, when the individual’s mind is engaged with the
considered product, positively affects his/her tendency to search for
information, therefore the first thing the individual does is web
browsing. Thus, the companies that sell online products are
recommended to design marketing strategies which, at the broad level of
the virtual world of information, provide the data related to the product
for the consumer. Halfordand et al. [19] defined that a substantial body
of research indicates that the prevalence of obesity in childhood is
increasing. The classic externality theory of obesity postulates that the
obese are more influenced by external stimuli than are the lean. The
effect of TV viewing on weight gain seems to be, at least in part, due to
a lack of physical activity rather than the act of viewing itself. However,
TV may not just promote sedentary behaviour. There is evidence that it
also stimulates food intake. TV viewing is associated with
overconsumption in girls, specifically of snack foods.

OBJECTIVES OF THE STUDY

 The objectives of the study are as follows

 To find out the exposure level of consumers to the advertisement of

the luxury goods.
 To study the platform of advertisement which is most viewed by
the consumers?
 To study that whether the buyers are influenced with the
advertisement they see for the luxury goods.
 To study the part of the advertisement which influences the most to the
consumers?
 To study the relation between the frequency of the advertisement and
the retention level of the advertisement at the time of the purchase.
 To study the consumer satisfaction level with respect to the product
after the purchase.

HYPOTHESES OF THE STUDY

• THE EXPOSURE FREQUENCY OF ADVERTISEMENTS
HAVE SIMILAR RETENTION LEVEL AT THE TIME OF
PURCHASE.

RESEARCH DESIGN OF THE STUDY

The conception of research design plan is a critical step in the research

process. The design of the study constitutes the blue print for the
collection measurement and analysis of the data. In other words, the
research design is a conceptual structure within which the research is
conducted.

SOURCES OF THE DATA

The study includes both primary and secondary data.

PRIMARY SOURCE

“Primary data is the first hand information which is collected afresh and
thus happens to be original in character.”

The primary data was collected by the way of well framed questionnaire.
Questionnaire was administered to gather information relating to the
attitude of management and non management students towards the
advertisement.

SECONDARY DATA
“Secondary data are those which have already been passed through the
statistical process”

The data was pre essential for this study was based on secondary data
source. This data was collected from magazines, journals and some
essential books related to advertisement were also referred. Some
information was obtained from online sites.

SAMPLE DESIGN

SAMPLE SIZE

Since it is not possible to study the whole universe, it becomes necessary

to take sample from the universe to know about its characteristics. 50
respondents were chosen.
SAMPLE METHOD

Random sampling is used for all the respondents from population of

Jammu City.

RESEARCH INSTRUMENT

Structured Questionnaire

NUMBER OF QUESTIONS

The total number of questions asked in the questionnaire included 6

general question related to personal profile and 20 questions in
particular.

LIMITATIONS
 2) TIME CONSTRAINTS

The time stipulated for the project to be completed is less and

thus there are chances that some of the information might
have been left out, however due care is taken to include all
the relevant information needed.

3) SAMPLE SIZE

Due to time constraints, the sample size was relatively

small and would definitely have been more representative if
more respondents were included.
4) SELECTION OF THE SAMPLE SIZE

Only the consumers from the Jammu City were chosen as

respondents due to time and money constrains.

5) ACCURACY

It is difficult to know if all the respondents gave accurate

information, some respondents tend to give misleading
information.

SCOPE OF FUTURE RESEARCH

The study was limited only to consumers of Jammu City but the
study could be extended to entire Jammu and Kashmir consumers, or
to the entire consumers of North India, South India, East India or
West India or to the whole of India.
 CHAPTER-3

DATA ANALYSIS AND INTERPRETATION

RESPONDENT INFORMATION

1 GENDER

S No. GENDER No. OF

RESPONDENTS
1 MALE 32
2 FEMALE 32

32 32
MALE
FEMALE

INTERPRETATION

The number of respondents from each category is same.

2 AGE
S No. AGE RANGE No. OF
RESPONDENTS
1 10-25 58
2 25-40 2
3 40-55 4
4 55 and above 0
(OPEN END SERIES)

00

2
10 TO 25
25 TO 40
40 TO 55
4
55 AND ABOVE

INTERPRETATION

Majority of the respondents belong to the age group of 25-40 years.

3 EDUCATIONAL QUALIFICATION
S No. EDUCATIONAL No. OF
QUALIFICATION RESPONDENTS
1 12TH 8
2 GRADUATE 48
3 POST GRADUATE 8

8 8

12TH
GRADUATE

48 POST GRADUATE

INTERPRETATION

Majority of the respondents are graduates.

4 FAMILY INCOME
S No. INCOME RANGE No. OF
RESPONDENTS
1 LESS THAN 3 LAKHS 4
2 3-8 LAKHS 34
3 8-15 LAKHS 14
4 MORE THAN 15 LAKHS 10
5 NOT ANSWERED 2
(OPEN END SERIES)

10 24
LESS THAN 3 LAKHS
3-8 LAKHS
14
34 8-15 LAKHS
MORE THAN 15 LAKHS NOT ANSWERED

INTERPRETATION

Majority of the respondents have family income between 3-8 lakhs.

5 HAVE THEY PURCHASED ANY LUXURY GOODS
 S No. ANSWER No. OF
RESPONDENTS
1 YES 56
2 NO 8

YES
NO
56

INTERPRETATION

Majority of the respondents have purchased the luxury goods once in

lifetime.

6 HAVE THEY BEEN EXPOSED TO ANY ADVERTISEMENT

RELATED TO LUXURY GOODS
 S No. ANSWER No. OF
RESPONDENTS
1 YES 56
2 NO 8

YES
NO
56

INTERPRETATION

Majority of the respondents have been exposed to advertisement related

to luxury goods.

6 WHICH ADVERTISEMENT MEDIA DOES THEY GET

EXPOSED TO?
 (MULTIPLE CHOICE)

S MEDIA No. OF PERCENTAGE

No. RESPONDENTS OF TOTAL
RESPONDENTS
1 TV 42 65.625%
2 NEWSPAPER 16 25%
3 INTERNET 46 71.875%
4 SOCIAL MEDIA 56 87.5%
5 BILLIBOARD 14 21.875%
6 OTHERS 4 6.25%

60 56

50 46
42
40

30

20
16
14

10
4

0
TV NEWSPAPER INTERNET SOCIAL BILLIBOARDOTHERS
MEDIA

INTERPRETATION

The media source which gets most attention is social media and internet.

8 WHICHTIMES OF THE DAY ARE THEY MOSTLY EXPOSED

TO ADVERTISEMENT
 S No. TIME OF THE DAY No. OF
RESPONDENTS
1 MORNING 8
2 AFTERNOON 4
3 EVENING 26
4 NIGHT 26

8
4
26
MORNING
AFTERNOON

EVENING
26
NIGHT

INTERPRETATION

Majority of the respondents are exposed to such advertisement in evening

and night.
Thus advertisers need to put up their ads frequently at this time period.

9 HOW OFTEN ARE THEY EXPOSED TO ADVERTISEMENT

RELATED TO SUCH PRODUCTS
S No. NUMBER OF TIMES No. OF
RESPONDENTS
1 NEVER 4
2 EVERYDAY 20
3 2-3 TIMES A WEEK 36
4 ONCE PER TWO WEEKS 4

NEVER
EVERYDAY
2-3 TIMES A WEEK ONCE PER TWO WEEKS

INTERPRETATION

Majority of the respondents have been exposed to such advertisement 2-

3 times a week.
QUESTIONS BASED ON RESPONSE FROM HIGHLY AGREE TO
HIGHLY DISAGREE (IN A WAY THAT STRONLY AGREE IS
MARKED 5 AND STRONGLY DISAGREE IS MARKED 1)

1. DO YOU REMEMBER THE ADVERTISEMENT WHEN YOU

LOOK FOR LUXURY PRODUCT IN THE MARKET

S No. RESPONSE No. OF

RESPONDENTS
1 STRONGLY AGREE 12
2 AGREE 36
3 NEUTRAL 8
4 DISAGREE 8
5 STRONGLY DISAGREE 0

MEAN: 3.8125
STANDARD DEVIATION: 1.631
COEFFICIENT OF VARIATION: 42.78%

INTERPRETATION
Majority of the respondents remember the advertisement when they look
for luxury products

INFERENCE
The statistics thus reflects that the present advertisements are able to
gain the effective attention of the potential buyers and thus it is essential
for the companies to focus on advertisement as a tool of marketing.
2. DOES ADVERTISEMENT INFLUENCE YOUR BUYING
DECISION

S No. RESPONSE No. OF

RESPONDENTS
1 STRONGLY AGREE 8
2 AGREE 15
3 NEUTRAL 20
4 DISAGREE 17
5 STRONGLY DISAGREE 4

Type equation here.

MEAN: 3.093
STANDARD DEVIATION: 1.417
COEFFICIENT OF VARIATION: 45.824%

INTERPRETATION
Majority of the respondents are neutral to the fact that they are being
influenced by advertisement for buying decisions of luxury products.

INFERENCE
It thus suggests that for purchase of luxury goods the people do take
advertisement as a source of awareness for that product but does not rely
on the information completely and thus research before purchasing
instead of just seeing the advertisement and make buying decision which
is sometimes seen in case of purchase of general consumer goods.
3. DO YOU PURCHASE LUXURY GOODS BECAUSE YOU
PERCIEVE ADVERTISEMENT VERY ATTRACTIVE

S No. RESPONSE No. OF

RESPONDENTS
1 STRONGLY AGREE 4
2 AGREE 16
3 NEUTRAL 32
4 DISAGREE 10
5 STRONGLY DISAGREE 2

MEAN: 3.1875
STANDARD DEVIATION: 1.4266
COEFFICIENT OF VARIATION: 44.756%

INTERPRETATION
The statistics indicate that the majority of the respondents are of belief
that the advertisements are neither very attractive nor very boring but the
tilt is towards the attractiveness of the advertisement.

INFERENCE
Thus we can infer from this that the advertisements are needed to be
attractive to gain attention of the potential customers.
4. DO YOU PURCHASE LUXURY GOOD BECAUSE YOU FIND
ADVERTISEMENT FOR SAME VERY INTERESTING

S No. RESPONSE No. OF

RESPONDENTS
1 STRONGLY AGREE 8
2 AGREE 21
3 NEUTRAL 26
4 DISAGREE 8
5 STRONGLY DISAGREE 1

MEAN: 3.421875
STANDARD DEVIATION: 1.4757
COEFFICIENT OF VARIATION: 43.128%

INTERPRETATION

The above statistics suggests that the majority of the respondents are
neutral for finding advertisement interesting for making purchase
decision. But the second highest number of respondents opted for agree
which means that they find interesting advertisement to be the cause of
purchase decision

INFERENCE
The advertisement must be thought provoking and should have capacity
to attract the customers towards the product.
5. DO YOU PURCHASE LUXURY GOODS BECAUSE YOU FIND
ADVERTISEMENT INFORMATIVE

S No. RESPONSE No. OF

RESPONDENTS
1 STRONGLY AGREE 18
2 AGREE 16
3 NEUTRAL 24
4 DISAGREE 3
5 STRONGLY DISAGREE 3

MEAN: 3.672
STANDARD DEVIATION: 1.5658
COEFFICIENT OF VARIATION: 42.644%

INTERPRETATION
The majority of the respondents opted out for neutral but there is meager
margin between the respondents opting for neutral and agreement.

INFERENCE
The conclusion from above statistics can be drawn that major thing
which the viewers or the potential customers search in the advertisement
is the authentic information. More the informative would be the
advertisement more customers would be attracted because of that.
6. DO YOU PURCHASE LUXURY GOODS BECAUSE YOU GET
INFLUENCES WITH THE INDIVISUAL OR PERSONALITY
SHOWN IN THE ADVERTISEMENT

S No. RESPONSE No. OF

RESPONDENTS
1 STRONGLY AGREE 10
2 AGREE 25
3 NEUTRAL 22
4 DISAGREE 5
5 STRONGLY DISAGREE 2

MEAN: 3.5625
STANDARD DEVIATION: 1.522
COEFFICIENT OF VARIATION: 42.72%

INTERPRETATION
The above statistics suggest that the majority of the respondents are
affected by the personality of the promoter shown in the advertisement.

INFERENCE
It suggests that the company should choose their representatives very
carefully as they are the ones whom the customers relate them self to or
would want themselves in that position.
7.DO YOU GET INFLUENCED WITH THE PROMOTIONAL
OFFERS SHOWN IN THE ADVERTISEMENT FOR THE LUXURY
GOODS

S No. RESPONSE No. OF

RESPONDENTS
1 STRONGLY AGREE 13
2 AGREE 24
3 NEUTRAL 17
4 DISAGREE 5
5 STRONGLY DISAGREE 5

MEAN: 3.5468
STANDARD DEVIATION: 1.518
COEFFICIENT OF VARIATION: 42.79%

INTERPRETATION
The above statistics show that the majority of the respondents believe in
the promotional offers the reason of their purchase.

INFERENCE
This suggests that the company should also focus on giving some offers
from time to time in order to increase their customers. It can also be seen
in the fact that when there are discounts on the luxury goods for example
the automobile the sales automatically increases.
8. ARE YOU STAISFIED WITH THE ADVERTISED PRODUCTS
AT THE TIME OF USAGE

S No. RESPONSE No. OF

RESPONDENTS
1 STRONGLY AGREE 4
2 AGREE 24
3 NEUTRAL 19
4 DISAGREE 14
5 STRONGLY DISAGREE 3

MEAN: 3.1875
STANDARD DEVIATION: 1.426
COEFFICIENT OF VARIATION: 44.73%

INTERPRETATION
The majority of the customers believe that the product in actual is similar
to the product advertised and this they are satisfied.

INFERENCE
It thus proves the fact that the company needs to adhere is product in a
same way at it is shown in the advertisement in order to retain customers.
 RADAR CHART REPRESENTING THE PART OF
ADVERTISEMENT WHICH ATTRACTS CUSTOMERS

ATTRACTIVE
35
30
25
20
15
10
PROMOTIONAL OFFER 5 INTERSTING
0 STRONGLY
AGREE

AGREE

NEUTRAL

DISAGREE

PERSONALITY SHOWN INFORMATIVE

STRONGLY
DISAGREE

The above radar chart represents that respondents are mostly neutral for
the various parts of the advertisement. This neutrality is something
which is unique with the luxury goods because the people here are very
cautious related to their purchase as the luxury goods involves huge
monetary value along with some non monetary value like status in
society etc.
Also, if go by the mean the component of advertisement which affect the
customer decision is the information available in the advertisement.
HYPOTHESIS TESTING
 HYPOTHESIS- THE EXPOSURE FREQUENCY OF
ADVERTISEMENT HAVE SIMILAR RETENTION LEVEL AT THE
TIME OF PURCHASE
DATA
EXPOSURE STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
AGREE DISAGREE
NEVER 0 0 0 4 0

EVERYDAY 6 8 4 2 0

2-3 TIMES A 4 26 4 2 0
WEEK
ONCE PER 2 2 2 0 0 0
WEEKS

CALCULATIONS:- USING ANOVA 1 WAY METHOD

OBSERVATION:- The value of f calculated is greater than the f tabled
value
RESULT: - The hypothesis is rejected and thus different frequency of
exposure of advertisement has different retention level
INFERENCE DRAWN:- from the above results and by observing the
table we can infer that the continuous exposure (like everyday) may not
have that impact which we can produce by adjusting the frequency of
exposure (like 2-3 times a week). This can also be interpreted that
continuous exposure may lead to information explosion thus decreasing
its effectiveness.
CHAPTER-4
FINDINGS AND SUGGESTIONS

FINDINGS
From the details of the study, we can enumerate the observation of the
project report that is, THE IMPACT OF ADVERTISEMENT ON
CONSUMER BUYING DECISION OF LUXURY GOODS in form of
findings as below:
Most of the respondents have been exposed to
advertisements related to the luxury products.
Social media platforms are the platforms where respondents
have viewed the advertisement after that comes internet/ web
and then television. Least viewed platform is billboards.
The advertisements are mostly viewed in evening and night.
Majority of the respondents see advertisements 2-3 days in a week.
Majority of the people agree that they remember the advertisement
when they are looking for the luxury goods.
Majority of the respondents are neutral to the fact that their buying
decision for luxury goods is influenced by the advertisements.
The component of the advertisement which affects the most on
the consumer buying decision is the information they give and
then they are influenced with the promotional offers and the
personality shown in the advertisements.
Most of the consumers are satisfied with the advertised products
after purchase.
The difference in the frequency of exposure of the advertisement
has different impact on advertisement retention at the time of
purchase.
SUGGESTIONS

From the details of the study, we can enumerate some suggestions for
advertisement of luxury goods. In the course of research we found
certain areas where advertisers can give more emphasis on to increase
the impact on consumers and thus increasing sale. Some of the
suggestions are given below:-

Advertisements should be more focused for age group of 25-

40 years.
Extensive use of social media platforms for advertisements
should be considered.
The advertisement should be displayed more often in evening and
night and thus should be designed in a night friendly mode.
The advertisements should be potential enough to gain attention of
the viewers and create a pseudo need of the product.
As we have seen that continuous exposure may lead to
information explosion thus decreasing its effectiveness. So the
advertisers should consider this fact and then prepare their plans
of advertising.
The advertisement structure and format for advertisements of the
luxury goods should be more explicit and lucid than advertisement
of normal goods.
The personality shown in the advertisement should be chosen
carefully and should either be someone whom the viewers can
relate with or someone who has the capacity and ability to
influence people.
ANNEXURE
QUESTIONNAIRE USED FOR THE MARKET RESEARCH

We used Google forms platform to conduct our survey. There were 64

respondents. The questionnaire presented was as given below:
 REFERENCES
- Marketing management by Philip Kotler
- www.acadmeia.edu/
- www.researchgate.net
- www.citeseerx.ist.psu