Customer Perception On Advertisement: Market Research

CUSTOMER PERCEPTION ON ADVERTISEMENT
INTRODUCTION
1.1 OVERVIEW OF THE STUDY
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. Many advertisements are designed to generate
increased consumption of those products and services through the creation
and reinforcement of "brand image" and "brand loyalty". For these purposes,
advertisements sometimes embed their persuasive message with factual
information.
Advertising research is the key to determining the success of an ad in

any country or region. The ability to identify which elements and/or
moments of an ad that contributes to its success is how economies of scale
are maximized. Once one knows what works in an ad, that idea or ideas can
be imported by any other market. Market research measures, such as Flow of
Attention, Flow of Emotion and branding moments provide insight into what
is working in an ad in any country or region.
Videocon is an industrial conglomerate with interests all over the world

and based in India. It is in the area of Consumer Electronics, Home
Appliances, Components, Office Automation, Internet, Petroleum and
Power. Before the liberalization of the Indian economy, only a few
companies like Kelvinator, Godrej, Allwyn, and Voltas were the major
players in the consumer durables market. Then, after the liberalization,
Regional Institute Of Co-operative Management, Bangalore 1

foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa
came into the picture.
Advertisement as a means of promotion plays a very important role in

influencing the consumer’s perception about a particular product of a
particular brand. Effectiveness of a particular advertisement is very
important in this competitive market. The study was conducted to
understand how advertisement impacts and to what level it influences the
purchasing decision of the consumers. The data was being collected using
questionnaire from people of different age group and occupation in
Bangalore. The data has been analyzed using statistical tools and results
were being formulated. From the findings of the study many important
suggestions were recommended to the company.

INDUSTRY PROFILE
Introduction
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the
consumer durables market, accounting for no less than 90% of the market.
Then, after the liberalization, foreign players like LG, Sony, Samsung,
Whirlpool, Daewoo, Aiwa came into the picture.
Consumer durables market is expected to grow at 10-15% in 2007-2008. It is

growing very fast because of rise in living standards, easy access to
consumer finance, and wide range of choice, as many foreign players are
entering in the market.
Consumer durables are the products whose life expectancy is at least 3 years.
These products are hard goods that cannot be used up at once.
The consumer durables sector can be segmented into consumer electronics,

such as, VCD/DVD, home theatre, music players, color televisions (CTVs),
etc. and white goods, such as, dish washers, air conditioners, water heaters,
washing machines, refrigerators, etc
Rural sector offers huge scope for consumer durables industry, as it accounts
for 70% of the Indian population. Rural areas have the penetration level of
only 2% and 0.5% for refrigerators and washing machines respectively. The
urban market and the rural market are growing at the annual rates of 7%-
10%and 25% respectively. The rural market is growing faster than the urban
market. The urban market has now largely become a product replacement
market..
Current Scenario
The consumer durables market in India is valued at US $ 4.5 billion

currently. In 2006, microwave ovens and air conditioners registered a
growth of about 25%. Frost-free refrigerators have registered significant
growth as many urban families are replacing their old refrigerators.
Refrigerator sales amounted to 4.2 millions in 2006, whereas the production
of the refrigerators went up by 17% as compared to the preceding year.
Washing machines, which have always seen poor growth, have seen
reasonable growth in 2006. More and more Indians are now buying
electrical appliances due to change in electricity scenario.
Rural sector offers huge scope for consumer durables industry, as it

accounts for 70% of the Indian population. Rural areas have the penetration
level of only 2% and 0.5% for refrigerators and washing machines
respectively. The urban market and the rural market are growing at the
annual rates of 7%-10%and 25% respectively. The rural market is growing
faster than the urban market. The urban market has now largely become a
product replacement market.
Future Scenario
With easy availability of finance, emergence of double-income

families, fall in prices due to increased competition, government support,
growth of media, availability of disposable incomes, improvements in
technology, reduction in customs duty, rise in temperatures, growth in
consumer base of rural sector, the consumer durables industry is growing at

a fast pace. Given these factors, a good growth is projected in the future, too.
The penetration level of consumer durables is very low in India, as
compared with other countries. This translates into vast unrealized potential.
Sector Outlook
There has been strong competition between the major MNCs like
Samsung, LG, and Sony.
LG Electronics India Ltd. has announced its extension plan in 2006. The
company is going to invest $250 million in India by 2011 and is planning to
establish a manufacturing facility in Pune.TCL Corporation is also planning
to establish a $22 million manufacturing facility in India.
The Indian companies like Videocon Industries and Onida are also
planning to expand. Videocon has acquired Electrolux brand in India. Also,
with the acquisition of Thomson Displays by Videocon in Poland, China,
and Mexico, the company is marking its international presence.
COMPANY PROFILE

Videocon India ltd founded by Nandlal Madhavlal Dhoot in 1987 with

long history had entered the market with color and B/W Televisions and
Washing Machines. The year 1989-1990 saw the advent of Home
Entertainment Systems, Electric Motors, and AC. Refrigerators and Coolers
by Videocon came in the year 1991. In 1995 Videocon entered into the
manufacturing of Glass Shells for CRT and in 1996 came with Kitchen
Appliances and Crude Oil. In 1998 Videocon ventured into Compressors
and Compressor Motors. It took over Philips Color TV plant in 2000 and 3
plants of Electrolux India in 2005. In the same year Videocon acquired
Thompson CPT. It is an ISO 9002 certified for quality. The Videocon group
emerges as a USD 2.5 Billion global conglomerate continuing to set trends
in every sphere of its activities from a conference room sized assembly line
in 1979.

The Videocon group has an annual turnover of US$ 4.1 billion,

making it one of the largest consumer electronic and home appliance
companies in India. Since 1998, it has expanded its operations globally,
especially in the Middle East.
Mission & Vision

The company has very big vision and mission statements, below
are made to make these statements easy.
Our Vision:
• To become the No.1 Service Provider in India.
Our Mission:
• To ensure Total Customer Delight by offering prompt and quality

services
• Contribute to product quality improvements
• Train service force continuously on field requirements
• To build the image of customer service and to ensure bench
marking of all functional areas with the best in the trade
Company Objectives:
♦ To restructure the service network in terms of automation,

infrastructure and manpower to meet the best of service
requirements and to minimize service response time as per market
trends.

♦ To establish the service organization as a value addition to the

brand and to provide total customer convenience and satisfaction at
par with or better than the best in the trade.
BOARD OF DIRECTORS
 Venugopal N. Dhoot
Chairman & Managing Director
 Pradipkumar N. Dhoot
Whole Time Director
 Kuldeep Drabu
 S. Padmanabhan
 Karun Chandra Srivastava
 Maj. Gen. S.C.N. Jatar
 Arun Laxman Bongirwar
 Satya Pal Talwar

 Gunilla Nordstrom Nominee - AB Electrolux (Publ)
 Ajay Saraf Nominee - ICICI Bank Ltd.
 Dr. Birendra Narain Singh Nominee IDBI Ltd.

K. R. KIM
Vice Chairman and CEO
Videocon Industries Limited
K R Kim was appointed as Vice Chairman and CEO, Videocon Industries

Limited in 2008. Since then, he has led the company to expand its operations
throughout the country in the Domestic and Global operations of the
consumer durables and infotainment division.
A veteran in the consumer goods industries and the former MD of LG

electronics, K.R Kim, a Law graduate from Seoul National University has
been associated for over 30 years with LG Electronics before joining
Videocon. During his tenure he served at esteemed positions of President
and that of a Managing Director.
K.R Kim’s proficient leadership skills, task driven approach and matchless
degree of excellence and discipline has conspicuously carved his identity
worldwide. Moreover, he has been the proud recipient of the ‘Super
Achiever’ award from CETMA (Consumer Electronics and TV
Manufacturers Association) for his role in advancing maturity of India’s
Electronics and Durable goods market. He has also been awarded for
Excellence in Corporate Leadership and Entrepreneurial Spirit established
by CNBC – TV 18- by our Honorable Prime Minister Mr. Manmohan Singh.
Consumer Electronics, Home Appliances & Compressor manufacturing

in India
Company enjoys a pre-eminent position in terms of sales and customer

satisfaction in many of the consumer products like Color Televisions,
Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and
many other home appliances, selling them through a Multi-Brand strategy
with the largest sales and service network in India. Refrigerator
manufacturing is further supported by our in house compressor

manufacturing technology in Bangalore.
Display industry and its components
With the Thomson acquisition Videocon has emerged as one of the largest
Color Picture tube manufacturers in the world operating in Mexico, Italy,
Poland and China, continuing to lead through new innovative technologies
like slim CPT, extra slim CPT and High Definition 16:9 format CPT.
o Today the group operates through 4 key sectors:
Consumer Durables Thomson CPT CRT Glass Oil & Gas
Color Picture Tube Glass
Videocon is one of the largest CPT Glass manufacturers in the world with a
high level of experience and technical expertise operating through Poland
and India. Videocon will leverage on this synergy after the Thomson
acquisition to internally source glass for its CPT manufacturing increasing
efficiencies and lowering costs.
Oil and Gas

An important asset for the group is its Rawa oil field with one of the lowest
operating costs in the world producing 50,000 barrels of oil per day. The
group has ambitious plans for expansion in this sector globally.
Consumer Durables by Videocon have a very eminent position in

Indian market and has the largest sale and service market in India. They
have an in-house manufacturing unit for compressors in Bangalore.
Consumer Durables is the major group of Videocon and it follows the
strategy of multi-brand and multi-price. It is manufacturing goods with price
range and brands. Videocon markets Sansui, Akai, and Toshiba besides its
own brand, Videocon and the combined Videocon International market
share are 16.8% by volume.
There are number of Consumer Durables by India manufactured by

Videocon as:
o Color television
o Washing Machines
o Air Conditioners
o Refrigerators
o Microwave Ovens
o Home theaters
o DVD Players
o Converters
Videocon is one of the largest Color Picture Tube (CPT) manufacturers

in the world. Slim CPT, Extra Slim CPT and High Definition CPT with 16:9
format are manufactured in the plants located in Mexico, Italy, Poland and
China. It is also a leading conglomerate in the manufacturing of Color
Picture Tube Glass and has plants in India and Poland. Oil and Gas segment
is of interest to Videocon and it produces 7% of all oil produced in the
private segment in India. Having the Rawa oil field by Videocon along with
others in the market has a very low operating cost and generates 50,000
barrels of oil per day. Videocon has eight plants located in different places in
India.
Videocon covers 34% market in Refrigerators. It manufactures

products by keeping in mind the lifestyle and pocket of the consumers.
Videocon has also manufactured the first rust free washing machine in India.
Videocon is an Indian Multinational that uses latest technology and has
stored much more to touch the skies. Videocon has many Service Centers
and Dealer Services in India.
Videocon, the leading consumer durables company has unveiled a

new brand identity and logo which was launched by the leading Bollywood
star Shahrukh khan in San Francisco. The idea behind the change comes
from the company's constant thirst of responding in tune with the changing
market dynamics.
To connect with its vast consumer base, Videocon has brought in

fresh perspective with a new communication for its consumer durable
segment. The new identity clearly defines the consumer-centric approach of
the brand and its positioning to be closer to the consumers heart - both in
terms of its values and philosophies, as well as its servicing aspects.
The main area of the business of the company has explained above
now the details about each sector can be known by the below diagram.
History of Videocon Industries Ltd
The below Diagram shows the growth history of Videocon Industries Ltd.
The history of origin of the company can be better understood by the growth
history of the company.
Network Of The Organization

Videocon industries ltd is having a wide network of area. As the company is
an MNC the area of network is very large. By various mergers, tie-ups and
acquisitions the company has built it’s a big chain of network. The company
has the dealer services in the following countries. In India the company has
its dealership service in all most all the states and also divisions in the states.
 India
 Oman
 UAE
 Russia
 Bangladesh
 Italy
 China

Research & Development
The company gives utmost importance to the R & D activities, which

are carried out, at in-house R & D center. The company carries on new
innovations in product development, cost reduction, quality improvement,
process implementations, process controls.
1) Specific areas in which R & D is carried out by the company
During the year, the company has carried out Research and
Development in the following areas.
1. Home theaters - High-end models and HTIB M odels.

2. Larger Screen Television i.e. 32 inch and 38inch.
3. True Flat Televisions.
4. Plasma Televisions.
5. Cosmetic design and new out look to the TVs.
6. Manufacturing of components for CTV, Refrigerators and Air
conditioners.
7. Efforts to reduce power consumption of all its final products.
2) Benefits derived as a result of the above R& D.
The company has derived the following benefits as a result of the

Research and Development:

1. Development of new design in product and launch of various new

models.
2. Able to compete with the foreign players in the Indian Markets by
cost reductions and offering innovation features and to maintain
market leadership in Television under Videocon umbrella.
3. Increase in Productivity.
4. Reduction in power consumption of some of the products.
3) Future Plans of action
In the coming days company is aiming to achieve development in the

following areas through Research & Development:
1. Manufacturing of components for consumer Electronics Products.

2. Multimedia TV.
3. Plasma Televisions.
4. Launching of New Brands & Sub-brands under Videocon umbrella.
5. Composite Home Entertainment system with internet adaptability.
To work on better features, better quality & improved reliability with

reduced/low prices.
RESEARCH METHODOLOGY
INTRODUCTION

Research refers to “The systematic method of consisting of

enunciating the problem, formulating a hypothesis, collecting the facts or
data, analyzing the facts and reaching certain conclusions towards the
concerned problem or certain generalizations for some theoretical
formulations”.
NEED FOR THE STUDY
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. Advertising research is the key to
determining the success of an ad in any country or region. Advertisement
as a means of promotion plays a very important role in influencing the
consumer’s perception about a particular product of a particular brand. As
the sales of the company are going down, the company wanted to know to
what extent advertisement as a promotional means would really influence
the consumer’s perception and whether it would eventually increase the
sales of the company.
PROBLEM OF THE STUDY
The study is being carried out to find out the impact of advertisement
on consumer preference regarding the consumer durables for the
Videocon Company. Although the company is one of the leading players

in the consumer durables market, it has been observed that the sales of the
company were going down. The company wanted to know how effective
can the advertisement, as a means of promotion, can influence the
consumer’s perception regarding a particular brand.
OBJECTIVE OF THE STUDY

 To understand the impact of advertisement on the consumer’s
perception regarding a particular product of a brand
 To find out which is the most reliable and best media for
advertisement of products of a brand
 To know what elements of an advertisement attract the consumers the
most.
 To understand which factors in an advertisement affect the purchase
decision of the consumers
SCOPE OF THE STUDY
This project helps to study about the effectiveness of an advertisement

in influencing the consumer’s purchasing decision. This project is aimed to
know the impact as well as the best source or media for advertisement of a
product. Through this project an attempt has been made to identify which
factors in an advertisement are essential to influence the consumer’s
perception regarding a product and its brand. The study was restricted to the
Bangalore region only.

REVIEW OF LITERATURE
Alan Resnik and Bruce L. Stern in their article ‘An Analysis of

Information Content in Television Advertising’ have said that “The
determination of the informational value of TV advertising has importance
to advertisers, networks, government, and consumers. The ultimate
judgment, whatever it may be, should facilitate decisions that are both in the
interest of the economy and of the consumer.’
Darral G. Clarke in his article ‘Econometric Measurement Of

The Duration Of Advertising Effect On Sales’ has stated that “If
advertising manager assumed advertising’s effect on sales to last for a period
of years , when in fact it only lasted for a period of months or vice versa,
poor decisions would necessarily result”
Deighton in his ‘Two-Step Model Of Advertising Effectiveness’

postulated that “advertisement works by initially arousing expectations that
subsequently lead to disposition to confirm during experience with the
product.” He found that beliefs about products were determined by an
interaction between advertising and objective evidence about product
performance.
LIMITATIONS OF THE STUDY
 The study was restricted to the selected areas in the Bangalore

region only.

 The information collected is purely on the respondents ‘ opinion

& may be biased
 The size of the samples was restricted by time
 The information collected will become invalid if there is
innovation or change in the elements and media of the
advertisement.
RESEARCH DESIGN
The research design is the blueprint for the collection, measurement
and analysis of data. It is the plan and structure of investigation so conceived
as to obtain answers to research questions.
Research design can be classified into different types
• The degree to which the research questions has

been crystallized.
• The method of data collection.
• The purpose of the study.
• The time dimension.
• The topical scope- breadth and depth- of the study.
• The research environment.
• The subjects’ perception of the research.
METHODOLOGY OF RESEARCH

A central part of research activity is to develop an effective strategy or

design. Methodology involves the most suitable method for investigation,
the nature of research instruments, the sampling plan and the type of data to
be collected. The research design constitutes the blue print for the collection,
measurement and analysis of data. It aids the researcher in the allocation of
his limited resources by posing crucial choices.
Naturally, Research Design is the plan and structure of investigation, so

conceived as to obtain the answers to the research questions.
TYPE OF RESEARCH DESIGN:
The type of research design used for this study is Descriptive

Research. The research design has been used to describe what existed in the
market/field outside, where the project was conducted. The descriptive
research includes surveys and fact- finding enquiries of different kinds. The
method of research utilized in descriptive research is survey methods of all
kinds, including comparative and co relational methods. In descriptive
research, on the other hand the researcher has to find facts or information
already available and analyze these to make a critical evaluation of the
material.
SOURCES OF DATA COLLECTION

• Primary data
Primary data is known as the data collected a fresh and for the first
time through field survey, and thus happen to be original in character.
Primary data was collected from students, professionals, and people

with family business, house wives, and government employees, of all the
age groups using well structures questionnaires (refer Annexure 1).
• Secondary Data
Secondary data is published documents prepared by authors outside

the sponsor organization. Data from secondary sources help to decide what
needs to be done and can be a rich source of hypothesis. A search of
secondary sources provides an excellent background and will supply many
good leads if one is creative.
Secondary data for the study are the websites which gave information
regarding advertisements and its effectiveness, the literature work of few
people and the books which helped to understand research methodology
(refer Bibliography)
METHOD OF DATA COLLECTION
The method used for data collection is the Survey method. Research
instrument used for obtaining the primary data is questionnaire (Annexure).
The type of questionnaire used is close-ended questionnaire.
PROFILE OF RESPONDENTS

The respondents were people of both the gender. The respondents

were grouped in different age groups like below 20 years, 20-30 years, 30-
40 years and 40 years & above. The respondents were separated based on
the occupation they have like Professionals, Family Business, Government
Employees, Students, House wives and others.
METHOD OF SAMPLING
The sampling technique used is Convenience Sampling. A

convenience sample is a sample where the respondents are selected, in
part or in whole, at the convenience of the researcher. The researcher
makes no attempt, or only a limited attempt, to insure that this sample is
an accurate representation of some larger group or population. The
classic example of a convenience sample is standing at a shopping mall,
outlets and selecting shoppers as they walk by to fill out a survey
SAMPLE SIZE
The sample size for the research study is 150. The data was
collected from 150 respondents in the given time frame
DATA ANALYSIS AND INTERPRETATION

Data analysis usually involves reducing accumulated data to a
manageable size, developing summaries, looking for patterns, and
applying statistical techniques. Scaled respondents on questionnaires
and experimental instruments often require analyst to derive various
functions. Further, researchers must interpret these findings in light
of the client’s research questions or determine if the results are
consistent .
Interpretation is an essential for the simple reason that the usefulness
and utility of research finding lie in proper interpretations. It is being
considered a basic component of research process because of the following
reasons.
Data was collected from the various people of different age group
using the questionnaire. Data was collected from 150 people of different
occupation and of both the gender. Analysis of their response is being
carried out in this chapter.
Analysis with respect to the data collected
1 SIMPLE TABULATION:

Table 1: Percentage of Male and Female Respondents
GENDER
Cumulative
Frequency Percent Percent
Male 69 46 46
Female 81 54 100
Total 150 100
Gender Of Respondents
46%
54% Ma le
Female
Fig 1
Interpretation
From the table 3.1 it is noticed that 54% of respondents were female
and 46% of the respondents were male out of the total 150 respondents

Inference
It is observed that out of the total respondents, there is more no. of
female respondents than the male respondents.
2) Respondents with different age group
Table 2: AGE GROUP
Cumulative
<20 years
1 0.7 0.7
20-30 years
60 40 40.7
30-40 years
49 32.7 73.3
<40 years
40 26.7 100
Total
150 100

AgeGroup
1%
27%
40%
<20 years
20-30 years
30-40 years
40 years>
32%
Fig 2
Interpretation
From the table 3.2, there was only 1 respondent below 20 years, 60
respondents between the age group of 12-30 years, 49 respondents between
the age group of 31-40 years, and 40 respondents between the age group of
41 years and above.
Inference
It is observed that around 0.7% of the respondents were between the age
group below 20, which is the least, while the maximum no of respondents
are between the age group of 21-30 years.
3) Percentage of respondents with different occupation

Table 3: OCCUPATION
Cumulative
Students 16 10.7 10.7
Professional 53 35.3 46
Family Business
24 16 62
Govt. Employee
34 22.7 84.7
House Wife 23 15.3 100
Total 150 100
Occupation
15% 0%
11%
23%
Students
Professional
Family Business
35% Govt. Employee

House Wife
16%
Fig 3
Interpretation
From the table we can see that the percentage of people with their
occupation as professional are 35.3%, as students it is 10.7%, as family
business it is 24%, as government employees it is 34 %, as house wives it is
15.3%
Inference
It is observed that majority of the respondents are with the occupation

as professionals in different fields at 35.3%, while the least no of
respondents are students at 10.7%
4) Extent to which a picture in the advertising attracts the consumer’s attention
Table 4: Picture element in Advertisement
Cumulative
Least attractive
3 2 2
Unattractive 36 24 26
Moderately
attractive
37 24.7 50.7
Attractive
56 37.3 88
Most attractive
18 12 100
Total 150 100

PictureElement in an Advertisement
2%
12%
24%
Least attractive
Unattractive
ModeratelyAttractive
Attractive
37%
Most Attractive
25%
Fig 4
Interpretation
Most of the respondents, i.e. around 37% of them said that a picture in
the advertisement does attract them to a large extent. While only 2% people
said they are not at all attracted by the picture in the advertisement.
Inference
Picture as one of the components of advertisement does attract the
consumers to a large extent.
5) Extent to which a headline in the advertising attracts the consumer’s attention

Table 5: Headline In an Advertisement
Cumulative
Least Attractive
4 2.7 2.7
Unattractive 27 18 20.7
Moderately
Attractive
75 50 70.7
Attractive 41 27.3 98
Most Attractive
3 2 100
Total 150 100
HeadlineElement In Advertisement
2% 3%
18%
27%
Least Attractive
Unattractive
Moderately Attractive
Attractive
Most Attractive
50%
Fig 5
Interpretation

Most of the respondents, i.e. around 50% of them said that a headline
in the advertisement may or may not attract their attention. While only 2%
people said they are very much attracted towards the headline in the
advertisement.
Inference
Headline as one of the components of advertisement is neutral for
attracting the consumers to a product through advertisement..
6) Extent to which a product in the advertising attracts the consumer’s attention
Table 6: Product Element in advertisement
Cumulative
Least Attractive
1 0.7 0.7
Moderately
Attractive
32 21.3 26
Attractive 67 44.7 70.7
Most Attractive
44 29.3 100
Total 150 100

ProductElement inAdvertisement
34% 1% 4%
17%
Least Attractive
Unattractive
Attractive
44% Most Attractive
Fig 6
Interpretation
Most of the respondents, i.e. around 44% of them said that a product
itself in the advertisement does attract their attention. While 34% of the
respondents said that they are very much attracted towards the product in the
advertisement.
Inference
Product as one of the main component of advertisement is very much
essential for attracting the consumers

7) Extent to which the Brand Logo of a product in the advertising attracts the
consumer’s attention
Table 7: Brand Logo In Advertisement
Cumulative
Least Attractive
1 0.7 0.7
Moderately
Attractive
32 21.3 26
Attractive 67 44.7 70.7
Most Attractive
44 29.3 100
Total 150 100
BrandLogo In Advertisement
1% 4%
29% 21% Least Attractive
Unattractive
Attractive
45% Most attractive
Fig 7

Interpretation
Most of the respondents, i.e. around 44.7% of them said that a brand
logo of a product in the advertisement does attract their attention. While only
.07 % people said the brand logo of any product doesn’t attract their
attention in a particular advertisement.
Inference
Brand logo of any product does play an essential part in attracting
the customers towards the advertisement.
8) Extent to which the picture is comprehensible in the advertisement
Table 8: Understanding of Picture in an Advertisement
Cumulative
Very
Incomprehensible
2 1.3 1.3
Incomprehensible
22 14.7 16
Moderately
Comprehensible
60 40 56
Comprehensible
45 30 86
Very Comprehensible
21 14 100
Total 150 100

Understanding of Picture in an Advertisement
Fig 8
Interpretation
Most of the respondents, i.e. 40% of the respondents have the opinion
that the picture is comprehensible to some extent in the advertisement.
While around 30% of the respondents have the opinion that a picture in any
given advertisement is moderately comprehensible.
Inference
. From the table it is understood that the picture in an advertisement
is moderately comprehensible by most of the respondents.
9) Extent to which the headline is comprehensible in the advertisement

Table 9: Understanding of Headline In Advertisement
Cumulative
Very Incomprehensible
2 1.3 1.3
Incomprehensible
28 18.7 20
Moderately
Comprehensible 59 39.3 59.3
Comprehensible
55 36.7 96
Very Comprehensible
6 4 100
Total 150 100
Understanding of Headline In Advertisement
Fig 9
Interpretation
From the table it is understood that most of the respondents, i.e.
around 39.3% have the opinion that the headline is not always
comprehensible in the advertisement. While around 36.7% of the

respondents have the opinion that a headline in any given advertisement is
moderately comprehensible.
Inference
. It is understood that the headline in an advertisement is not always
or moderately comprehensible by most of the respondents.
10) Extent to which the product is comprehensible in the advertisement
Table 10: Understanding of Product In an advertisement
Cumulative
Incomprehensible
1 0.7 0.7
Moderately
comprehensible
30 20 20.7
Comprehensible 71 47.3 68
Very Comprehensible
48 32 100
Total 150 100
Understanding of Product In an advertisement

Fig 10
Interpretation
around 47.3% have the opinion that the product is comprehensible in the
advertisement. While around 32% of the respondents have the opinion that a
product in any given advertisement is very much comprehensible.
Inference
It can be seen that the Product in an advertisement is easily
comprehensible by most of the respondents.
11) Extent to which the Brand Logo is comprehensible in the advertisement

Table 11: Understanding a Brand Logo in Advertisement
Cumulative
Incomprehensible
6 4 4
Moderately
Comprehensible
40 26.7 30.7
Comprehensible
58 38.7 69.3
Very Comprehensible
46 30.7 100
Total 150 100
Understanding a Brand Logo in Advertisement
Fig 11
Interpretation


around 38.7% have the opinion that the Brand Logo is comprehensible in the
advertisement. While around 30.7% of the respondents have the opinion that
a Brand Logo in any given advertisement is very much comprehensible.
Inference
. It can be seen that the Brand Logo in an advertisement is easily
comprehensible by most of the respondents.
12) Advertisement understood by Intuition or Deliberation
Table 12: Understanding Of the Advertisement
Cumulative
Intuition 26 17.3 17.3
Low Intuition 36 24 41.3
Neither intuition
nor Deliberation 50 33.3 74.7
Low Deliberation 35 23.3 98
Deliberation 3 2 100
Total 150 100
Understanding Of the Advertisement

Fig 12
Interpretation
As per the table it is understood that most of the respondents, i.e.
around 50 respondents out of the 150 have the opinion that they do not take
so much deliberation to understand a particular advertisement. While around
36 respondents out of the 150 feel that they understand the advertisement
with their intuition.
Inference
It can be seen that most of the respondents understand the
advertisement with their intuition while very few deliberately understand a
particular advertisement.

13) Level of effort taken to associate the advertising image with its advertised
brands and products
Table 13: Advertising Image Association Effort
Cumulative
Very Little Effort 20 13.3 13.3
Little Effort 34 22.7 36
Moderate Effort 47 31.3 67.3
More Effort 32 21.3 88.7
Too Much Effort 17 11.3 100
Total 150 100
Advertising Image Association Effort
Fig 13
Interpretation
From the table we can see that a large no of respondents, i.e. around
47 respondents out of the 150 need to take around moderate effort to
associate a particular advertising image with its brand and its product.
Inference
It can be seen that moderate effort is taken to associate the

advertising image with its advertised brands and products.
14) Level of attention given to the picture in a particular advertisement
Table 14: Paying More Attention to Picture in Advertisement
Cumulative
Strongly Disagree
8 5.3 5.3
Disagree
41 27.3 32.7
Neutral
36 24 56.7
Agree
48 32 88.7
Strongly Agree
17 11.3 100
Total
150 100
Paying More Attention to Picture in Advertisement

Fig 14
Interpretation
According to the table we can see that around 32% of the respondents
say that they do agree that they pay more attention to the picture in a given
advertisement.
Inference
Most of the respondents do pay more attention to a picture in the

given advertisement. Hence it is very important to have a very
attractive and appropriate picture while advertising a particular
product.
15) The best media for advertisement of a product

Table 15: Best Media for Advertisement
Cumulative
News Papers
16 10.7 10.7
Television 95 63.3 74
Internet ads 19 12.7 86.7
Magazines 6 4 90.7
Radio 8 5.3 96
Mobile ads 1 0.7 96.7
Covert Ads 5 3.3 100
Total 150 100
Best Media For advertisement

News Paper
5% 1% 3% 11% Television
4%
Internet Ads
13%
Magazines
Radio
Mobile Ads
63%
Covert Ads
Fig 15
Interpretation

As the table shows we can see that most of the respondents, i.e. around 63%
of all, are of the opinion that TV is the Best Media for advertising a
particular product. While around 10.7% and around 12.7% of the
respondents feel that Newspapers and Internet ads are the best media for
advertisement respectively.
Inference
It is understood from the responses that TV is the best media for
advertising a product whereas the mobile ads is the least media for
advertising a product to the consumers.
16) Factors in an advertisement that attracts the respondents to make the decision
regarding the purchase of a particular product
Table 16: Most Influential Factor in Advertisement
Cumulative
Content of the ad
35 23.3 23.3
The Presentation
41 27.3 50.7
Product Itself
57 38 88.7
Celebrity in the 17 11.3 100
Ad
Total 150 100
Most Influential Factor In
Advertisement
11% 23% Content Of the Ad
The Presentation
38%
28% Product itself
CelebrityIn the Ad
Fig 16
Interpretation
From the table we understand that product itself as a factor in an
advertisement plays a very important role in making the purchase decision of
a particular product, according to 38% of the respondents. Also the
presentation of the advertisement according to around 27.3% of the
respondents plays an important role in taking decision regarding the
purchase of the product.
Inference
The product itself as well as the presentation of the advertisement, as
the factor of advertisement influences the decision of the people while
purchasing a particular product. Also the content of the advertisement does
influence the decisions of the people to some extent
17) The most reliable media for advertisement
Table 17: Most Reliable Media
Cumulative
Print Media
39 26 26
Electronic
Media
111 74 100
Total 150 100
Fig 17
Interpretation
As per the table we understand that electronic media is the most reliable
media according to the 74% of the respondents. While 26% of the
respondents are of the opinion that print media is the most reliable
advertisement media.
Inference
Electronic Media is the most reliable media for advertisement
according to most of the respondents even though a few no. of respondents
do feel that the print media is the most reliable for advertisement.
18) The Reasons for Print Media being the Most reliable Media

Table 18: Print Media is Most Reliable (Reason)
Cumulative
1 6 4 4
2 16 10.7 14.7
3 17 11.3 26
4 111 74 100
Total 150 100
NOTE: Reasons 1,2,3,4 are as below:
1) Respondents can see the advertisement whenever they want
2) More information about the product is given
3) The respondents can use the information for future references
4) Question is Not Applicable as the respondents selected other media
Interpretation
As per the table, for about 74% of the respondents the question was not
applicable as they selected the other media. Out of the respondents the
people who selected print media as the most reliable media for
advertisement most of the people, i.e. around 17 people gave the reason that
they can use it for future references and around 16 people said that they can
say so because more information about the product is given in the print
media. Only 6 people said that they say so because they can see the ad
whenever they want to.

Inference
People say that the print media is reliable because they can use it for future
reference as well as more information about the product is given in the print
media.
19) The Reasons for Electronic Media being the most reliable media
Table 19: Electronic Media is the most Reliable Media (Reasons)
Cumulative
1
56 37.3 37.3
2 49 32.7 70
3 6 4 74
4 39 26 100
Total 150 100
NOTE: Reasons 1,2,3,4 are as below:
1) Latest Information can be obtained
2) Very Glamorous and Attractive
3) Other Reason
4) Question is Not Applicable as the respondents selected the other

media
Interpretation

As per the table, for about 39% of the respondents the question was not
applicable as they selected the other media. Out of the respondents the
people who selected electronic media as the most reliable media for
advertisement most of the people, i.e. around 49 people gave the reason that
the electronic media is reliable as it is very attractive and glamorous and
around 56 people said that they can say so because latest information can be
obtained from the electronic media. Only 6 people said that they say so
because of other reasons.
Inference
People say that the electronic media is reliable because it is very glamorous
as well as latest information about the product can be obtained
20) The statement which best expresses your opinion regarding product purchase
Table 20: Statement Expressing Best Opinion Regarding Product Purchase
Cumulative
1
14 9.3 9.3
2
79 52.7 62
3
38 25.3 87.3

4
19 12.7 100
Total
150 100
NOTE: Statements
1. I buy the product based on what my favorite celebrity

endorses
2. I buy the product based on its features shown in an ad
3. I buy the product based on its brand name
4. I buy the product based on what my friends, relatives,

neighbors use.
Interpretation
As per the table we can see that around 52.7% of the respondents agree with
the statement that they buy the product based on the features shown in an
advertisement. While only 9.3% of the respondents agree with the statement
that they buy the products based on what their favorite celebrity endorses.
Inference
According to the analysis of the data, majority of the people buy products
based on the features of the products shown in a particular advertisement.
21) Word of mouth is more influential than any other advertisement
Table 21: Word of Mouth is very influential

Cumulative
Yes
112 74.7 74.7
No
38 25.3 100
Total
150 100
Fig 18
Interpretation
According to the table we can see that around 74.7 % of the respondents are
of the opinion that word of mouth is more influential than any other source
of advertisement .While around 25.3% people are not of that opinion.
Inference
Word of mouth is a strong source of advertisement than most of the other
sources of advertisement

22) Respondents being deceived by the advertisement of any particular product
Table 22: Deceived by Advertisement of a particular Product
Cumulative
Yes
64 42.7 42.7
No
86 57.3 100
Total
150 100
S2Fig 19
Interpretation
From the table it is seen that 57.3% of the respondents have the opinion that they were not
deceived by any particular advertisement of a product. But around 42.7% of the respondents do
feel that they have been deceived by the advertisement of a particular product.

Inference
Some advertisements do deceive the consumers regarding the product sold. But most of them do
not.
FINDINGS & SUGGESTIONS

Findings
• Most of the people purchase products based on the features shown in the
advertisement. But the brand name of the product does play a very
important role in influencing the purchase decision of most of the people.
Celebrity endorsed advertisement doesn’t really influence much for taking
the purchase decision of the product.
• Brand logo of any product does play an essential part in attracting the
customers towards the advertisement.
• It was understood that the headline in an advertisement is not always

comprehensible by most of the respondents

• According to the table it was observed that most of the respondents
understand the advertisement with their intuition while very few

deliberately understand a particular advertisement.
• It can be observed that moderate effort was taken to associate the

advertising image with its advertised brands and products.
• Most of the respondents do pay more attention to a picture in the given
advertisement. Hence it is very important to have a very attractive and

appropriate picture while advertising a particular product.
• It was understood from the responses that TV was the best media for
advertising a product whereas the mobile ads is the least media for
advertising a product to the consumers.
• The product itself as well as the presentation of the advertisement, as the

factor of advertisement influences the decision of the people while
purchasing a particular product. Also the content of the advertisement
does influence the decisions of the people to some extent
• Electronic Media is the most reliable media for advertisement

according to most of the respondents even though a few no. of
respondents do feel that the print media is the most reliable for
advertisement
• People say that the print media was the most reliable media because
they can use it for future reference as well as more information about
the product is given in the print media.

• People say that the electronic media is reliable because it is very

glamorous as well as latest information about the product can be
obtained
• According to the analysis of the data majority of the people buy

products based on the features of the products shown in a particular
advertisement.
• Word of mouth was a strong source of advertisement than most of the

other sources of advertisement according to the most of the
respondents
• Some advertisements do deceive the consumers regarding the product

sold. But most of them do not.
Suggestions
 According to the findings television is the best media for

advertisement. Hence the company should focus more on the
advertisements shown on the television
 The advertisements of the product should stress more on the features

of the product than other things as most of the consumers buy products
based on the features of the product in the advertisement.

 Word of mouth is very much influential than any other form of

advertisement. Hence the company should undertake various causes and
events which would lead to positive word of mouth among the consumers.
 Electronic media is said to be more reliable than other form of

media. Hence more and more no. of advertisement should be shown on
various sources of electronic media like internet, television, mobiles, etc.
 The product and its Brand logo attract the consumers towards an
advertisement which influences them while taking the purchase decision.
Hence the brand positioning and the product positioning through proper
advertisement to the target consumers is very important and hence more
stress should be given on it.
CONCLUSION
The study on the “Impact of Advertisement On Consumer Preference”

revealed that there is a very positive impact of advertisement on the consumer’s
perception regarding a particular brand. Hence it is strongly recommended to stress more
on the advertisement part of the promotional strategies of the company.
Since Videocon is a well established brand in India and is an Indian

multinational company this study can be better validated by making a nationwide survey.
The study was conducted in various regions in Bangalore. The responses of

people of all the age group was collected for the purpose of analysis. The people of both
the gender as well as various occupational groups were the respondents for the study.

The information collected is purely on the respondents’ opinion & may be biased. The
study was restricted to selected areas in the Bangalore area
The responses of the various people revealed that advertisement does affect
the purchasing decisions of the people to a large extent. Hence it is necessary to invest
huge amount on the advertisement part of the promotional strategies. It was found out
from the research that television is important and the best media for advertisement of
products. More stress should be given on the electronic media for advertisement
The study could be more effective if the sampling frame of respondents is

increased beyond the Bangalore city. If survey was done in other cities of India also, then
a better picture would merge.
BIBLIOGRAPHY
Books Referred:
1. C. R Kothari (2002) ‘Research methodology’ , 2nd edition reprint , Wishwa Prakashan.

2. Donald Cooper & Pamela Schindler, ‘Business Research Methods’ , 9th edition , Tata Mc
Graw – Hill publishing company limited, New Delhi.
Websites:
 www.videoconworld.com
 www.wikipedia.com
 www.googlesbooks.com
 www.googlescholar.com
ANNEXURE
7.1 Questionnaire
‘A STUDY ON THE IMPACT OF ADVERTISEMENT ON

CUSTOMER PERCEPTION’
Dear Sir/ Madam:
The purpose of this survey is to assess the impact of advertisement on the

perception of the consumers regarding their purchase behavior. It will take
approximately 5 minutes to complete the questionnaire. It is very important
for us to learn your opinions.
Please answer the following questions selecting the option that better
describe your opinion. Thank you very much for your time and your support.

1. Gender: Male Female
2. Age: Below 20 yrs 21-30 yrs
31-40 yrs 41 yrs and above
3. Occupation
Student Professional
Family Business
Govt. employee House Wife

Other
4. To what extent do you think the advertising attract your attention?
Please give the score to each component of the advertising on a scale of 1-5.
(1=being the least, 5=being the most)
1 2 3 4 5
Picture

Headline
Product
Brand Logo
5. To what extent do you understand the advertising? In other words, could you
understand the association with the advertising image and its advertised products?
Please give the score to each component on the scale of 1-5.
Very incomprehensible Very comprehensible
1 2 3 4 5
Picture
Headline
Product
Brand Logo
6. After seeing the image, on a scale of 1- 5, which one does best describe your
situation?
a). I can understand the advertisement by?
Intuition 1 2 3 4 5 Deliberation
b). How much effort does it take to associate the advertising image
with its advertised brands and products, e.g. it is advertising of refrigerator?
Very little 1 2 3 4 5 Very much

c). I pay more attention to the “picture” in the advertisement
Strongly disagree 1 2 3 4 5 Strongly

agree
7. In your opinion which is the best media for advertising a product?
News Papers Television Internet ads
Magazines Radio Mobile ads
Covert Ads (Ads embedded in movies)
8. According to you which factors in an advertisement attracts you the most to make
a decision to purchase a particular product
Content of the Ad The presentation
Product itself Celebrity in the ad
9. Which media according to you is the most reliable?
Print Media (News paper, Magazines,…etc.)
Electronic media (TV, Internet,… etc.)

10(a). If print media, why?
I can see the ad whenever I want
More information about the product is given
I can use it for future references
Other reason -
10(b). If Electronic Media, why?
Latest Information can be obtained
Very Glamorous and attractive
Other reason-
11. Select the statement which best expresses your opinion regarding product
purchase
I buy the product based on what my favorite celebrity endorses
I buy the product based on its features shown in an ad
I buy the product based on its brand name
I buy the product based on what my friends, relatives, neighbors

use.

12. Do you think word of mouth is more influential than any other advertisement?
Yes No
13. Have you anytime been deceived by the advertisement of any particular product?
Yes No
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CUSTOMER PERCEPTION ON ADVERTISEMENT

1.1 OVERVIEW OF THE STUDY

Advertising is a form of communication that typically attempts to

Advertising research is the key to determining the success of an ad in

Videocon is an industrial conglomerate with interests all over the world

Regional Institute Of Co-operative Management, Bangalore 1

Advertisement as a means of promotion plays a very important role in

Regional Institute Of Co-operative Management, Bangalore 2

Consumer durables market is expected to grow at 10-15% in 2007-2008. It is

The consumer durables sector can be segmented into consumer electronics,

The consumer durables market in India is valued at US $ 4.5 billion

Rural sector offers huge scope for consumer durables industry, as it

With easy availability of finance, emergence of double-income

consumer base of rural sector, the consumer durables industry is growing at

Regional Institute Of Co-operative Management, Bangalore 5

Videocon India ltd founded by Nandlal Madhavlal Dhoot in 1987 with

Regional Institute Of Co-operative Management, Bangalore 6

The Videocon group has an annual turnover of US$ 4.1 billion,

Mission & Vision

• To become the No.1 Service Provider in India.

• To ensure Total Customer Delight by offering prompt and quality

♦ To restructure the service network in terms of automation,

Regional Institute Of Co-operative Management, Bangalore 7

♦ To establish the service organization as a value addition to the

 Karun Chandra Srivastava

 Maj. Gen. S.C.N. Jatar

 Arun Laxman Bongirwar

 Satya Pal Talwar

 Ajay Saraf Nominee - ICICI Bank Ltd.

 Dr. Birendra Narain Singh Nominee IDBI Ltd.

Regional Institute Of Co-operative Management, Bangalore 8

K R Kim was appointed as Vice Chairman and CEO, Videocon Industries

A veteran in the consumer goods industries and the former MD of LG

Consumer Electronics, Home Appliances & Compressor manufacturing

Company enjoys a pre-eminent position in terms of sales and customer

manufacturing is further supported by our in house compressor

Display industry and its components

o Today the group operates through 4 key sectors:

Consumer Durables Thomson CPT CRT Glass Oil & Gas

Color Picture Tube Glass

Oil and Gas

Consumer Durables by Videocon have a very eminent position in

There are number of Consumer Durables by India manufactured by

Videocon is one of the largest Color Picture Tube (CPT) manufacturers

Videocon covers 34% market in Refrigerators. It manufactures

Videocon, the leading consumer durables company has unveiled a

To connect with its vast consumer base, Videocon has brought in

History of Videocon Industries Ltd

Network Of The Organization

Regional Institute Of Co-operative Management, Bangalore 14

Research & Development

The company gives utmost importance to the R & D activities, which

1) Specific areas in which R & D is carried out by the company

1. Home theaters - High-end models and HTIB M odels.

2) Benefits derived as a result of the above R& D.

The company has derived the following benefits as a result of the

Regional Institute Of Co-operative Management, Bangalore 15

1. Development of new design in product and launch of various new

3) Future Plans of action

In the coming days company is aiming to achieve development in the

1. Manufacturing of components for consumer Electronics Products.

To work on better features, better quality & improved reliability with