Dissertation Report

ON
“THE IMPACT OF ADVERTISTING ON
CONSUMER BEHAVIOUR”

BY
KUSHAL AGRAWAL
A30101917046
MBA (2017-19)

Under the Supervision of

Prof. RUCHI SINHA

AT

AMITY GLOBAL BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH
SECTOR125, NOIDA- 201303, UTTAR PRADESH

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 STUDENT DECLARATION

I hereby declare that this submission is my own work and that, to the best of my
knowledge and belief, it contains no material previously published or written by another
person nor material which has been accepted for the award of any other degree or
diploma of the university or other institute of higher learning, exceptwhere due
acknowledgment has been made in the text.

Signature ofthe student

KUSHAL AGARWAL

Roll No: A30101917046

MBA SEC A SEM – 4

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 ACKNOWLEDGEMENT

We have immense pleasure in successful completion of this work titled:

“THE IMPACT OF ADVERTISTING ON CONSUMER BEHAVIOUR”.

The special environment at AMITY GLOBAL BUSINESS SCHOOL Noida, that

always supports educational activities, facilitated my work on this project. We
acknowledge the support, the encouragement, extended for this study by us
Director Dr. GIRISH KATHURIA. We greatly appreciate the motivation and
understanding extended for the project work, by Prof.RUCHI SINHA (Faculty
AGBS), who responded promptly and enthusiastically to my requests for frank
comments, despite their congested schedules. We are indebted to all of them,
who did their best to bring improvements through their suggestions.

AMITY GLOBAL BUSINESS SCHOOL Noida, who directly or indirectly have been
helpful in some or the other way. We thank our Dearest Parents, who
encouraged me to extend my reach. With their helpsupport, we have
been able to complete this work.

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 FACULTY MENTORS CERTIFICATE

This is to certify that the project report entitled “THE IMPACT OF ADVERTISTING
ON CONSUMER BEHAVIOUR” submitted by Kushal Agarwal to Amity Global Business
School for partial fulfillment of requirements for Master of Business Administration is a bona
fide record of the project work carried out by her under my supervision and guidance. The
content of the report, in full or parts have not been submitted to any other Institute or
University for the award of any other degree ordiploma.

Signature of Faculty mentor

Prof. RUCHI SINHA

Project Guide, Amity Global Business School

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 PREFACE

There has been an unusual growth in marketing research and a great increase in the
sophistication of the techniques and used during the last two decades. The applications
of behavioral science to marketing research continue to be of major magnitude. These
days, the most exciting developments are occurring in decision theory, advanced
statistical analytical procedures, and in the application of experiments in marketing is
increasing with a tremendous pace.

Marketing should not be looked upon in a vacuum or in isolation. It is an essence

taking a view of the whole business organization and its ultimate objective concern for
marketing must penetrate all areas of the enterprise. Market surveys in today’s
competitive world are a must for every organization.

This report is on “THE IMPACT OF ADVERTISING ON CONSUMER

BEHAVIOUR”. The rationale behind this particular study is to find out the difference
advertising brings about in the consumers purchasing decisions.

To carry out this research a sample study was pursued where the target audience was of
a region. Various statistical and analytical tool and techniques are applied to ascertain
and depict the present scenario.

Conclusion and there by recommendations have been arrived at by proper and justified
interpretation of the result derived from the above said analytical tools and techniques.

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 CONTENTS

SR NO. PARTICULARS PAGE NO.

1. INTRODUCTION 7

2. PROFILE OF THE STUDY

● OBJECTIVES 8

● HYPOTHESIS 9

● RESEARCH METHODOLOGY 10

3. DATA ANALYSIA & INTERPRETATION 32

4. FINDINGS 47

5. SUGGESTIONS 48

6. CONCULUSION 49

7. LIMITATIONS 50

8. BIBLIOGRAPHY & REFERENCES 51

9. APPENDIX 52

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 INTRODUCTION

Almost every one grows up in the world which is flooded with the mass media e.g.
television, advertising, films, videos, billboards, magazines, movies, music, newspaper,
and internet. Of all marketing weapons, advertising is renowned for its long-lasting
impact on viewer’s mind, as its exposure is much broader. Advertising is a subset of
promotion mix which is one of the 4P’s in the marketing mix i.e. product, price, place
and promotion. As a promotional strategy, advertising serves as a major tool in creating
product awareness in the mind of a potential consumer to take eventual purchase
decision. Advertising, sales promotion and public relations are mass-communication
tools available to marketers. Advertising through all mediums influence audiences.

According to Jetkins (2000) advertising is a practical affair which differs with

marketing; marketing drives products and services to the customers while advertising
drives customers to the product or services.
Patley (2004) states that advertising is promotion of goods or services for public and its
goal is drawing attention of people and showing favorable light to them.

In the twenty-first century advertising has become a critical issue and requires ethical
consideration, because advertisement helps customers to choose their products or
services that fit their needs.

It is also noticed that intensive competition, technological development, increased

importance of information communication technology (ICT) and rising consumer
awareness and knowledge are challenging for marketers to analyse for choice of best
advertisement strategy. Mass media, social network and public experiences are
important thing while selecting advertising strategy. Selection of strategy is important
and challenging task because various type of products in organization and market.

In today’s dynamic world, it is almost impossible for advertisers to deliver advertising

message and information to buyers without use of advertising. Certainly, this may be
because of the globalization and accessibility of hundreds of channels for the viewers of
this modern era. Now a day, due to globalized economy, this made available a bulk of
marketing stimuli to the modern consumers. More often consumerism describes the way
of equating personal happiness, with purchasing material possessions and consumption
in excess of one’s need.

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 OBJECTIVES

This project is prepared to fulfill certain objectives. They are as follows:

➢ To examine the influence of advertising on consumer buying behaviors.

➢ To identify the advertising medium that gets the attention of consumers.

➢ To analyse if there are other reasons why people purchase products.

➢ To study factors affecting the consumer buying process with respect to

advertisements.

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 HYPOTHESIS

The hypotheses formulated for the study are as follows:

➢ Advertising has a huge impact on consumers purchasing decisions.

➢ Broadcasting advertisements are the most popular among the various mediums.

➢ Advertisements are the main reason why people purchase products.

➢ Factors such as age, occupation, lifestyle, etc do affect the consumer buying
decision

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 RESEARCH METHODOLOGY

Research refers to search of knowledge and it is an art of scientific investigation.

According to KERLINGER, it is a systematic, controlled empirical and critical natural
phenomenon.

Methodology means the medium through which any study is conducted. In research
methodology mainly, data plays an important role. The data is divided into two parts:

a)Primary Data- Data used in research originally obtained through the direct efforts
of the researcher through surveys, interviews and direct observation. This data collected
by me was with the help of a questionnaire that I prepared and had made consumers fill.

b)Secondary Data- These data are those which are already in existence and which
have been collected for some other purpose rather than the answering of questions in
hand. This data was collected through various journals, magazines and many websites
on the internet.

My research approach was through a questionnaire and surveys conducted by me. I used
convenience sampling method which is a type of non-probability sampling method for
the collection of data. A total of 100 consumers were surveyed.

Both the primary data as well as the secondary data played an important and vital role as
the project could not be completed without the help of both these data.

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PRIMARY SOURCES: -

 Questionnaire
 Survey

SECONDARY SOURCES: -

 Journal
 Magazines
 Internet

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 5 M’s OF ADVERTISING

 MISSION: First of all, the marketing manager must be clear on the company’s
purpose for advertising. The purpose or reason of the advertisement is the
mission of all the advertisers.
 MONEY: After the objective has been decided upon, the next step is to decide
upon the budget. There are several methods on deciding on the advertising
budget. The most common among them is the percentage of sales method.
Under this method, a certain percentage of sales are allotted for advertising
expenditure.
 MESSAGE: In every advertisement there is a message. The message that company
wants to convey should be put in a manner that will arouse interest. Moreover, it should
convincingly highlight upon the products USP. What is said is definitely important but
what is more important is how it is said. The tone should be appealing. Words used
should be catchy and retentive.
 MEDIA: Selecting the proper media vehicle for communicating the message
goes a long way in the success of any kind of advertising. Each media vehicle
has its positive and negative points with a different reach and impact.
 MEASUREMENT: It is necessary that effectiveness of any advertising be
judged. Only on the basis of this measurement, can further decisions regarding
continuation or termination of the particular advertising campaign be taken. An
ad can be judged on the basis of its reach and impact on sales.

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 PARTICIPANTS OF ADVERTISING

● Advertisers- These are the individuals/firms/organizations which desire to

advertise their products or services. They support the whole advertising process
as they provide finance by paying the advertising charges.

● Advertising agencies- An advertiser can implement his advertising plan directly

through his own sales or advertising department or may transfer the entire
responsibility of advertising to a specialized professional agency called
advertising agency.

● Audience- Advertising is for giving message about goods or services to readers,

viewers or listeners. They constitute the audience. It is for their information and
guidance that advertisements are given.

● Advertising Media- Advertising media act as a connecting link between the

advertiser and the audience. The media act as a channel of communication for
giving message to two or more media for advertising purpose. Newspaper,
magazine, radio and T.V. are some popular advertising media and are used
extensively by advertisers.

● Government Authorities- Government authorities act as a one important

participant in the advertising field. Government acts as a supervisory authority
in the field of advertising. It makes rules and regulations as regards that use of
media for advertising purpose. Some advertising media such as radio and T.V.
operate directly under the control of central government.

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 TYPES OF ADVERTISINGMEDIA

1. Print Advertising: Print media advertising is a form of advertising that uses

physically printed media, such as magazines and newspapers, to reach consumers,
business customers and prospects

2. Outdoor Advertising: Any advertising done outdoors that publicizes your

business's products and services. Types of outdoor advertising include billboards, bus
benches, interiors and exteriors of buses, taxis and business vehicles.

3. Broadcast Advertising:The term broadcast advertising applies to commercials aired

on either television or radio or the internet. It's also known as on-air advertising. It's the
primary revenue generator for commercial television and radio stations.

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4. Covert Advertising:The phrase "covert advertising" refers to advertising that is
hidden in other media, such as an actor in a movie drinking a Coca-Cola. It is referred to
as "covert" because it is not direct advertising, but subliminally viewers often notice the
product.

5. Surrogate Advertising:Surrogate advertising is a form of advertising which is used

to promote banned products, like cigarettes and alcohol, in the disguise of another
product.

6. Celebrity Advertising:Celebrity branding or celebrity endorsement is a form

of advertising campaign or marketing strategy used by brands, companies, or a non-profit
organization which involves celebrities or a well-known person using their social status or their
fame to help promote a product or service.

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 AIDA MODEL

The AIDA Model identifies cognitive stages an individual goes through during the
buying process for a product or service. It's a purchasing funnel where buyers go to
and for at each stage, to support them in making the final purchase. Each letter in the
acronym stands for the following:

● The "A" represents Attention or Awareness, and the ability to attract the attention of
the consumers.

● The "I" is Interest and points to the ability to raise the interest of consumers by
focusing on and demonstrating advantages and benefits (instead of focusing on features,
as in traditional advertising).

● The "D" represents Desire. The advertisement convinces consumers that they want and
desire the product or service because it will satisfy their needs.

● The "A" is Action, which leads consumers toward taking action by purchasing the
product or service.

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 ROLE OF ADVERTISING

I. Manufacturers and Advertising:

Manufacturers and producers, who intend to make available goods to the people at
profit, do take full advantage of advertising as a major weapon to popularize their
products and services.

The specific benefits that accrue to the manufacturers are:

1. It increases and stabilizes the sales turnover:

People should know that the product is the best. In a highly sensitive and
competitive mechanism, profits of the firm cannot be maximized by mere
reducing the costs but by multiplying the sales-turnover. Advertising does this, by
changing the consumer attitude favorably. Further, the sales turnover rate so attained
should be maximized and maintained at any rate. Advertising does this by repeat sales.
A regular, effective and frequent advertising always helps in building more loyal class
of customers.

2. It maintains the existing market and explores the new:

A forward-looking company always has its eyes on the future business prospects
though it cannot lose sight of the current position. A company’s success is
reflected not only in creating market but its maintenance and extension. It is a
natural feeling that when advertising campaign decreases, the products are not
measured up to, the consumer expectations. Further, current business situations
warrant a forceful entry into new markets. In such newly exposed markets,
advertising does spade-work for the sponsor to sow the seeds of prosperity.

3. It controls product prices:

Through advertising, it is possible to control the product prices with profit. Very
often the greedy retailers exploit the needy consumers by charging higher prices.
If this consumer exploitation is not bridled, both the producers and consumers
are to suffer for no fault of theirs. The manufacturer can help him and help
consumers by printing the consumer prices on the product packages.

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II. Sales-Force and Advertising:
Sales of the selling house are the result of the efforts put in by both direct and indirect
approached. Personal selling is the direct method of selling, while advertising is
indirect. Both are important in the scheme of successful marketing. Both are to be
dovetailed for the best results.

The sales-force stands benefitted as under:

1. It creates colorful background:

A good salesman is nothing less than an actor who by his skill in selling wins
the hearts of consumers and sells the company products and services. All such
sales acumen has value and the glamour only when he has a matching back-
drop. He may be agile, tactful, versatile salesman but the extent of his success is
resting heavily on the colorful background created by the advertising.

2. It reduces his burden of job:

In case salesman alone is called upon to accept the challenge of selling, it goes
much difficult. In absence of advertising, he is forced to play a double role the
role of advertising and that of salesmanship both rolled into one. Advertising
provokes public interest, wins the confidence, and promotes conviction. With
such ready background, salesman can capitalize easily to sell well. As
advertising sells between the calls, the work of salesman is rendered easier.

3. It instills self-confidence:

The victory of a selling house is conditioned by the nature or quality of sales-

force rather than its quantity or number. A sales-force that is self-confident and
drive-packed is an asset. Advertising, by educating sales-force, acts a creative
force as it instills self-confidence, initiative and drive in them. Advertising
gears the salesmen to the top by making them self- confident and self-starting.

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III. Consumers and Advertising:
The final aim of all marketing efforts is to satisfy the needs of consumers by
transmitting the benefits of productive efficiency to the final users.

Advertising is an essential concomitant of modern marketing mechanism that

helps consumers in three ways:

1. It is a driving-force in decision-making:

The present-day complex world of industry has been able to provide with the
largest possible varieties of products to such an extent that the consumers are at
loss to decide. Further, each producer claims that his own products are the best.
In such situation, it is advertising that comes to the rescue of a consumer to
select the best by providing him with comparative account of each in terms of
features, prices, utility, quality, durability, convenience and the like, the
consumer finds it easy to decide with such ready information.

2. It ensures better quality products at reasonable prices:

Advertising stimulates the sales of a good product and accelerates the

destruction of bad product or products by imprinting the image of the product on
the minds of the consumers and earn a long-standing reputation for the
manufacturing house. Maintenance of quality and price of a product is important
not only as an objective but as a bench-mark for quality improvement and price
reduction.

3. It saves good deal of time:

The modern gracious living has made the members of the family to put forth
their best to make both the ends to meet. Each one has joined the rat race of
earning more where he is racing against the limited time. For such people,
advertising is a great time- saver. Advertising saves time in the sense that it sells
the goods and services well in advance. That is, through the ads, people know
about products and services they are to only contact the selling outlets to get
them.

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Society and Advertising:

Advertising is both a business and social force and institution. As a business and social
process, it affects every-one in the society.

The society stands to benefit as under:

1. It uplifts the living standards:

Advertising nourishes the consumer power and creates wants for better standard
of living. Standard of living depends on the national income and its distribution
on one hand and the consumption pattern on the other hand with relevance to
disposable income. Advertising gives kick to the consumption pattern making
them to buy more and more.

2. It generates gainful employment opportunities:

Advertising can generate gainful employment opportunities directly and

indirectly for those who have talent and courage. Direct employment
opportunities are wide open in the varied branches of every growing field of
advertising. It is highly specialized and challenging area requiring the services of
talented people like artists, painters, photographers, message writers, singers,
campers, musicians, carpenters, press men, actors, technicians and executives
too. This employment generation is of special importance to the developing
countries like India.

3. It up-holds the culture of a nation:

Culture is man-made environment in which he lives along with others. It stands

for the values of life and living. These values are subject to change and are
guided by the dynamics of social, political, economic and ethical dimensions.
The cultural function of advertising is to understand, reflex and accept the value
structure of society well before it vanishes. Advertising, within the limits, set by
the culture, is to create new expectation for the consumers.

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 ADVERTISEMENT IN THE MODERN SOCIETY

Advertising is a way to showcase one’s products or services and offer consumers a vast
choice in terms of what they are offered and what they can choose to buy. For the
consumers, advertising offers them a choice to get at the best in the market at the best
price.
Today, it is unimaginable to expect people, especially in urban areas, to spend their
money buying products of which they haven’t heard a thing. People know what is in the
market and then choose what they want. Nothing can be more satisfying than this, for
then one gets his or her money’s worth. But advertising has been not only a boon, but
also a bane in many ways.
Advertising relies on consumerism to succeed and consumer’s judge by materialistic
standards. Moreover, successful advertising means emerging triumphant in the face of
tough competition, often without consideration of high standards or aesthetic tastes.
Advertising being crass and opportunistic in its very basis, the overemphasis on
advertising today is a bane. Advertisers tend to appeal to popular (even ‘low’) tastes to
appeal to a larger section of the population. Images of sex and violence are used to
attract viewers’ attention—a kind of ‘negative’ appeal is produced to sustain interest.
Products become ‘known’ then because of the ‘hype’ or ‘advertising’ appeal that they
have, even though the products themselves may not be of the required standard. Lies are
resorted to when advertised, and with time no one objects to the trend.

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 ADVERTISING INDUSTRY IN INDIA

The Indian advertising industry is talking business today. It has evolved from being a
small-scale business to a full-fledged industry. It has emerged as one of the major
industries and tertiary sectors and has broadened its horizons be it the creative aspect,
the capital employed, or the number of personnel involved.

Indian advertising industry in very little time has carved a niche for itself and placed
itself on the global map. Indian advertising industry with an estimated value of 70,889-
crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work
that it has given in the recent past. The creative minds that the Indian advertising
industry incorporates have come up with some mind-boggling concepts and work that
can be termed as masterpieces in the field of advertising.

India’s market dynamics, which boast of a very large and young consumer base, have
contributed to it being among the most important markets for global players. Also, there
has been parallel sophistication in the creative output from India. In 2008, India won its
first Grand Prix at the Cannes Lions International Festival of Creativity and has since
added a few more. Not only in terms of awards but also in terms of work and ideas,
India is now exporting to other markets, especially for media such as mobile.

As India continues its growth journey, a significant aspect would be the contribution
that entrepreneurs would do to the advertising world. “Indian AdLand has its share of
entrepreneurs even today, but I reckon that as we grow, their contribution will grow to
make a significant difference,”. If that is a change expected in the agency business
where India at 100 will boast of the rise of the local leader, from a sentimental
standpoint, the one thing that will not change are the values that will resonate for the
Indian consumer

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 SCOPE OF ADVERTISING INDUSTRTY IN INDIA

The advertising industry in India has several competitive advantages:

➢ India has a rich pool of strategic planning, creative and media services
personnel.
➢ Indeed, Indian advertising industry has been exporting senior-level talent to
many countries, particularly to the Gulf, South-East Asia, China, the UK and the
US. Indian talent is recognized and respected in global agency networks.
➢ No other country has access to so many trained management graduates who can
provide strategic inputs for brand and media planning.
➢ Indians are multicultural: We learn at least two languages and that gives us a
head start in understanding cultural diversity.

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 GROWTH OF ADVERTISING IN INDIA

Advertising as we understand today has its origin in the early historical period. It has
made steady progress over centuries. Its need or importance is growing along with the
growth and expansion of business activities. Many significant changes have taken place
during the process of evolution of advertising. Like other countries, advertising has a
long history in India. However, advertising was officially recognized as a medium of
mass communication only in the 18th century. The first newspaper “BENGAL
GAZETTE” was published in India in 1780. By 1786, there were four weekly
newspapers and monthly magazines published in Calcutta. Advertising on radio started
in India in 1950‟s.

Advertising on radio proved to be a powerful medium useful for creating new markets.
Commercial Broadcasting has informed and entertained people for more than 40 years.
In 1928, two advertising agencies were started in India. The importance of advertising
started increasing only after the Second World War. The Association of Advertising
Agencies of India (AAAI) was established in 1945.The Audit Bureau of Circulation
(ABC) was started in 1948. T.V. started in India in September 1959.In addition to DD
Metro now we also many other channels on television like Zee T.V., STAR PLUS,
COLORS, ETC. cable T.V. and many more such channels for Advertising purpose.
Introduction of satellite T.V. has made a revolution in the advertising field in India.

The progress of advertising in terms of quality, creativity and coverage has become
extremely fast in India since 1950 due to the introduction of new advertising media.
Ample of scope is available for advertising due to industrial growth.

As per the latest report by entsu ageis network as of 2018, the Indian advertising market
stands at Rs. 61,878 crore ($8.76 billion) and is estimated to grow with a CAGR of
10.62% till 2021 to reach a market size of Rs. 85,250 crores ($12.06 billion). The
digital advertising market size is around Rs. 10,819 crore ($1.3 billion) and the
estimated CAGR growth will be 31.96% and the market will expand to Rs. 24,920
crores ($3.52 billion).

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 IMPACT OF ADVERTISING

Advertising plays an important role in today’s competitive business world. It provides

benefits to Manufacturers, Retailers, Customers, Salesman and Society as well.

● Introduces a New Product: Advertising is used to introduce a new product in

the market. It helps to compete with establish brands and, thereby, ensures the
survival and success of new product.

● Creates Demand for Product: Advertising creates demand for the product.
Advertising spread information about the product or services and makes
consumers aware about it through various mass media which makes positive
effect on the mind of the people and create demand for the product.

● Expand Market: It helps in expanding local markets, to national level and even
to international level. Trading at national and international level is impossible
without advertising.

● Assists Personal Selling: Advertising reaches a prospect before a salesman

could. The prospect is well informed through advertising. Makes the salesman’s
job easier.

● Building Brand Image: The purpose of repeat advertisings is to make people

more brands conscious. Once good brand image is developed, buyers generally
become brand loyal. Money spent on advertising is a long term investment to
build brand and company image.

● Reduces the cost of goods: Advertising generates more demand, which leads to
large scale production and distribution. This results in economies in large scale
which in turn reduces cost of goods.

● Persuades prospects: Every competitor makes superior claims of his product.

Therefore, a prospect needs to persuade to buy products. So, the role of
Advertising is not only to inform but also to persuade.

● Employment: Advertising provides employment in the field of advertising to

copywriters, models, etc. It provides indirect employment in society due to large
scale production and distribution

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 FACTORS INFLUENCING CONSUMER BEHAVIOUR

Consumer behavior can be broadly classified as the decisions and actions that influence
the purchasing behavior of a consumer. The study of consumer behavior not only helps
to understand the past but even predict the future. The below underlined factors
pertaining to the tendencies, attitude and priorities of people must be given due
importance to have a fairly good understanding of the purchasing patterns of consumers.

1. Purchasing Power
Purchasing power of a consumer plays an important role in influencing the consumer
behavior. The consumers generally analyze their purchasing capacity before making a
decision to buy and products or services. The product may be excellent, but if it fails to
meet the buyers purchasing ability, it will have high impact on it its sales.

2. Group Influence
Group influence is also seen to affect the decisions made by a consumer. The primary
influential group consisting of family members, classmates, immediate relatives and the
secondary influential group consisting of neighbors and acquaintances are seen have
greater influence on the purchasing decisions of a consumer.

3. Personal Preferences
At the personal level, consumer behavior is influenced by various shades of likes,
dislikes, priorities, morals and values. In certain dynamic industries such as fashion,
food and personal care, the personal view and opinion of the consumer pertaining to
style and fun can become the dominant influencing factor.

4. Economic Conditions
Consumer spending decisions are known to be greatly influenced by the economic
situation prevailing in the market. This holds true especially for purchases made of
vehicles, houses and other household appliances. A positive economic environment is
known to make consumers more confident and willing to indulge in purchases
irrespective of their personal financial liabilities.

5. Marketing Campaigns
Advertisement plays a greater role in influencing the purchasing decisions made by
consumers. They are even known to bring about a great shift in market shares of
competitive industries by influencing the purchasing decisions of consumers. The
Marketing campaigns done on regular basis can influence the consumer purchasing
decision to such an extent that they may opt for one brand over another or indulge in
indulgent or frivolous shopping. Marketing campaigns if undertaken at regular intervals
even help to remind consumers to shop for not so exciting products such as health
products or insurance policies.

26
EFFECTS OF ADVERTISING ON CONSUMER BEHAVIOUR

● Increased Awareness: Advertising and promotion offer a news function to

consumers. Viewers of ads learn about new products and services available to
them, much like they learn about events in the news. This information function
has a neutral role. It provides facts without approval or disapproval from
consumers. Customer behavior at this stage encompasses expressions of
curiosity.

● Analysis of Features: Consumers have a rational response to advertising when

they look at the features of a product or service. This response focuses on a
logical listing of all the functional aspects of the offering. This is an intellectual
response, rather than an emotional one.

● Evaluation of Benefits: When customers weigh benefits, they become

emotionally involved with advertising and promotion. Consumers identify ways
the product or service can make them happier, improve their lives or give them
pleasure. This part of the consumer response is irrational and can lead to impulse
buying and competition to obtain the product.

● Reminders: Repeated advertising messages affect consumer behavior. This

repetition serves as a reminder to the consumer. Behavior that stems from
reminders includes suddenly thinking of a product while shopping and making a
decision to buy it, as if it had been on the consumer’s "to-do" list.

● Promotion of Loyalty or Alienation: Consumer behavior splits between

loyalty and alienation depending on how well the product lives up to its
advertised benefits. Corporate behavior – such as scandals or charity work – can
also affect alienation and loyalty responses. Once the consumer makes this
choice, advertising and promotion are not likely to undo that decision.

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 NEGATIVE IMPACT OF ADVERTISING

● Misrepresentation: Advertising aims to present a product in the best light

possible. There is some leeway in the creative process. The problem arises when
the dramatization crosses the line into falsely representing a product. Hefty fines
can result from false advertising when levied by the Federal Trade Commission.

● Unrealistic Expectations: Direct-to-consumer advertising for prescription

drugs has resulted in unrealistic expectations about the effectiveness of drugs
and their side-effects, according to the Food and Drug Administration's study.
Voice-overs give the downside to the drug, but the visual images show healthy,
happy people. It's not unusual to hear that even death may be a side-effect of a
prescription drug. Beauty and health products may also not live up to their
promises, resulting in wasted consumer money. Disclaimers are often hidden in
very small print on product packaging and in out-of-the way spots in ads.

● False Images: Advertising is ingrained in Indian culture, from children's

programs on Saturday morning to talk shows and prime time TV. Advertising
even invades movies through product placement. It's not an accident when a
movie hero holds up a can of Coke instead of Pepsi. Advertising influences how
people feel about themselves -- often in a negative way. Based on the images
they see in advertising, women often feel they should be thin and beautiful and
hold down full-time jobs while also being full-time mothers. Advertising
communicates that men should be handsome, tall, athletic, caring husbands,
thoughtful fathers and virile at all times. These images are often unrealistic and
unattainable.

● Children: There is a link between food advertising and children's preferences

regarding what they will consume. Ads for many sugary cereals encourage
children to ask their parents for those particular products -- regardless of whether
the products are good for the children. It's not coincidental that the most heavily
advertised toys during the holiday season end up being the top sellers. Children
are susceptible to advertising.

28
 WHAT IS NEEDED IN PERFECT ADVERTISING?

After doing the study on advertising, I think that the perfect advertising is the
advertising which should at least contains the following things after planning and doing
research on the customer preference: -

● Jingle and signature tune: Jingles are like a song therefore it is more likeable
by the people in Patna. It is easy to remember the product which has jingle in its
advertising and it sounds nice.

● Use different modes of advertising: Using different modes of advertising

makes chances of aware of products in a large scale. Modes like online, TV
serials and show, billboards, standard newspaper, magazines, word of mouth, etc
give a desired publicity to a product.

● Location: If advertising has to be made within the home then its condition
should well enough because it reflects the company image. Its environment
should look comfortable.

● Advertising in sports: The FIFA and the Cricket are the medium through which
the people in Patna are connected to the advertising.

● Brand ambassador: Shahrukh, Amitabh, Aishwarya, Aamir, Sachin, Dravid,

Sania, Dhoni and John are the brand ambassadors who are popular and make the
product sale through their advertising. The personalities other than these have
not made a good effect by their own.

● Innovation in advertising: Advertising should also be published through

innovative media like outdoor campaign, advertisings in the serials and show
(Kit Kat), use of that product in a movie (Virudh-Calcium Sandoz, Bournvita-
Koi Mil Gaya, Motorola-Don, etc), streets play (Airtel), give advertising on the
another product (“Rang De Basanti‟ printed on the coke bottles), advertise
through SMS or Free Promos, neon, etc because it attract the target people at
cheaper cost.

29
 BRIGHT FUTURE FOR DIGITAL ADVERTISING IN INDIA

When it comes to digital in India, we are at an interesting point in time. Apparel and
books are bought via E-commerce. Cabs are hailed through ride-hailing apps. Video and
music is streamed and games are played online. Digital has fast permeated into our daily
lives in a way that for a big chunk of India’s populace when it comes to their daily lives,
digital is the way to go. In fact, there could not have been a better time to go digital in
India.

Recognizing this trend and the fact that digital, particularly mobile is where their
audience is, marketers have taken this route too. In fact according to a recent IAMAI-
IMRB report, digital advertising spend in India hit INR 5200 crore by the end of 2015,
growing at a CAGR of 35% between 2011 and 2015; way ahead of the global digital
growth rate of 10% during the same period.

Industry verticals that love going the digital advertising way

Their target audience is online. All of their buying and selling happens online. It is not
even a surprise therefore to find E-commerce leading the pack in terms of volume of
digital advertising spends in India, followed by BFSI and Telecom.

30
 Video, Mobile for digital ad spends

While digital ad spends on search stood at INR 5200 crore in 2015, share of video and
mobile in total digital ad spends saw a massive rise. While video saw a year-on-year
growth in spends of 173%, mobile saw a 116% rise in ad spends between 2014 and
2015.

As Indian consumers started increasingly shifting to digital, mobile has been their
preferred medium for accessing digital content and services. If you want to find your
connected consumer today, mobile is the place to be. On the other hand, increasing
consumption (owing to hardware, connectivity and other ecosystem advancements)
means more opportunity to engage the consumer via video. Furthermore, as a medium
itself, video lends to a rich and immersive engagement experience which makes for a
very effective marketing medium.

Consumers love digital ads more now

A reason why digital advertising, especially on mobile, is on the rise is because

consumers are more receptive to it. There has been a substantial rise in consumers who
feel that relevance with digital ads has increased for them and these ads are helping
them find the right product and aiding their purchase decisions better. Many see these
ads as informative and unlike traditional media such as television, digital media offers a
greater amount of flexibility over viewing or not viewing an ad.

31
 DATA ANALYSIS AND INTERPRETATION

1) Do you think advertising is affecting consumer behavior?

RESPONSES YES NO NEUTRAL

FREQUENCY 82% 7% 11%

FREQUENCY

7%

YES
NO
NEUTRAL

CONCLUSION: -

The above given chart shows that 82% consumers think that advertising is affecting
consumer behavior, 7% do not necessarily consider advertising as an important factor
that affects consumer behavior. However, the remaining 11% have a neutral opinion on
the same.

32
2) Where do you mostly come across advertisements?

RESPONSES TV BILLBOARDS RADIO LEAFLETS NEWSPAPERS

FREQUENCY 28% 20% 19% 11% 22%

FREQUENCY
TV BILLBOARDS RADIO LEAFLETS NEWSPAPERS

22%

28%

11%

20%
19%

CONCLUSION: -

From the above response it can be seen that the highest mode through which people
come across advertisements is television with 28%, following up with newspapers-22%,
billboards-20% and radio-19%. However, leaflets with 11% are seen to be the least
common mode of advertisements.

33
3) Which medium of advertisement do you prefer?

RESPONSES OUTDOOR BROADCAST PRINT

(BILLBOARDS, (TV, RADIO) (NEWSPAPERS, BROCHURES)
EVENTS)
FREQUENCY 32% 40% 28%

FREQUENCY

FREQUENCY,PRIFREQUENCY,OU
NT,28%,28% TDOOR,32%,32%

FREQUENCY,BR
OADCAST,40%,4
0%
OUTDOOR
BROADCAST
PRINT

CONCLUSION: -

From the above shown graph it can be seen that 40% consumers prefer broadcast
advertising to a large extent, 32% of the population prefer outdoor advertising and the
remaining 28% prefer print advertising.

34
4) How often are you exposed to the advertisements?

RESPONSES EVERYDAY 3-4 TIMES PER ONCE IN TWO

WEEK WEEKS
FREQUENCY 86% 11% 3%

FREQUENCY
EVERYDAY 3-4 TIMES PER ONCE IN TWO WEEKS

CONCLUSION: -

From the above-mentionedresponse, it can be seen that a major proportion, i.e., 86% of
the population are exposed to advertisements on a daily basis. However, 11% of the
consumers see advertisements 2-33 times per week and only 3% of them are exposed to
it once in 2 weeks.

35
5) Do you find advertisements unrealistic and exaggerated?

RESPONSES YES NO NEUTRAL

FREQUENCY 15% 45% 40%

FREQUENCY

28%

42%

30%

TV BILLBOARDS RADIO

CONCLUSION: -

The above given chart shows that 45% consumers do not find advertisements unrealistic
and exaggerated. On the other hand, 40% had a neutral opinion on the same and 15%
felt advertisements were unrealistic.

36
6)‘Advertising is beneficial to consumers because it provides important information
about goods and services. To what extent do you agree with this statement?

RESPONSES AGREE DISAGREE NOT SURE

FREQUENCY 75% 14% 11%

FREQUENCY
TV BILLBOARDS RADIO

28%

42%

30%

CONCLUSION: -

From the above shown graph it can be seen that 75% of the population find advertising
to be beneficial. However, this 14% disagree with this statement and 11% are not sure
about the same.

37
7)Have you ever changed your perception towards a commodity because of its
advertisements?

RESPONSES YES NO
FREQUENCY 89% 11%

FREQUENCY

42%

58%

TV BILLBOARDS

CONCLUSION: -

From the above mentionedgraph, it can be seen that a large part of the population i.e.,
89% believe that a consumer’s perception changes towards a commodity because of its
advertisements. But, the remaining 11% don’t agree with this fact.

38
8) What makes you as a consumer change your mind?

RESPONSES FREQUENCY

COLOUR SCHEME 10%

PARTICIPATING CELEBRITIES 8%
CARTOON CHARACTERS USED 6%
BETTER UNDERSTANDING ON PRODUCTS 30%
LAYOUT OF THE ADVERTISEMENT 12%
SLOGAN/MELODY USED 15%
VISUAL MEDIA 19%

FREQUENCY
19% 10%

8%

6%
15%

12%
30%

COLOUR SCHEME
PARTICIPATING CELEBRITIES
CARTOON CHARACTERS USED
BETTER UNDERSTANDING ON PRODUCTS
LAYOUT OF THE ADVERTISEMENT
SLOGAN/MELODY USED
VISUAL MEDIA

CONCLUSION: -

The above given chart shows that 30% consumers mainly focus on better understanding
of the products which is followed up by 19% going on the visual’s media. 15% of the
population focus on slogans and melody. The lowest feature that makes consumers
change their mind is the use of cartoon characters in advertisements.

39
9) ‘The more times an advertisement is viewed by a consumer, the more likely the
consumer is to go and buy the product’. To what extent do you agree with this
statement?

RESPONSES AGREE DISAGREE NOT SURE

FREQUENCY 77% 13% 10%

FREQUENCY
AGREE DISAGREE NOT SURE

10%

13%

77%

CONCLUSION: -

The above given graph shows that77% of the population agreement with the statement
that the more an advertisement is viewed by consumers the more the more they will
remember about the product and purchase the same. However, 13% disagree and 10%
are not sure about the same.

40
10) Does an advertisement urge you to try a new brand?

RESPONSES YES NO
FREQUENCY 81% 19%

FREQUENCY
YES NO

19%

81%

CONCLUSION: -

From the above graph it can be seen that according to 81% consumers, advertisements
of new brands do tempt them to purchase its products. However, 19% did not believe
the same.

41
11. What is your level of satisfaction after purchasing an advertised product?

Response Very Satisfied Satisfied Neutral Dissatisfied

Frequency 7% 35% 45% 13%

Frequency
13% 7%

35%

45%

Very Satisfied Satisfied neutral dissatisfied

CONCLUSION: -

From the above graph it can be seen that according to 7% consumers get very satisfied
from advertisements 35% get satisfied 45% are neutral and rest 13% consumer remain
dissatisfied from advertisement

42
12. Do you think that the advertisement design could affect the class and/or culture?

Response Yes No
Frequency 67% 23%

Frequency

17%

83%

Yes No

CONCLUSION: -

From the above graph it can be seen that 67% consumer say that advertisement effect
class or culture and 23% are in favor of advertisement

43
13. Have you ever hesitated to buy a product because of its advertisement?

Response Yes No Neutral

Frequency 62% 23% 15%

Frequency

28%

62%

10%

Yes No Neutral

CONCLUSION: -

From the above-mentioned graph, it can be seen that a large part of the population i.e.,
62% believe that a consumer hesitates to buy product because of its advertisements. The
remaining 23% says no and the rest 15% are neutral towards the advertisement of the
product.

44
14. Do you think that there is a relation between gender of the consumer and their
ability in feeling the relevancy of the message in the ad?

Response Yes No
Frequency 77% 23%

Frequency

23%

77%

Yes No

CONCLUSION: -

From the above-mentioned graph, it can be seen that 77% people say that there is a
relation between gender of the consumer and their ability in feeling the relevancy of the
message in the ad and rest 23% say no about it

45
15. According to you, does celebrity endorsement have a positive or negative impact on
the advertisement of the product?

Response Positive Impact Negative Impact

Frequency 81% 19%

Frequency

19%

81%

Yes No

CONCLUSION: -

From the above-mentioned graph, it shows that 81% consumer say that celebrity
endorsement have 81% positive impact on advertisement of the product and 19% say
they give negative impact on the advertisement of the product

46
 FINDINGS

After the detailed examination of analysis and interpretation of the data collected from
various outlets, the following findings have been drawn:

➢ Advertising does have a major impact on consumer behavior, be it in a positive

way or a negative one.

➢ Not only broadcast advertising but also outdoor advertising grabs the attention
of consumers.

➢ Advertisements help consumers on deciding the brands that they might prefer.

➢ Factors like- cultural background, social class, age, etc affect buying decision of
consumers.

➢ Celebrity endorsement has a major impact on the buying decisions of consumers

as they are considered to be idols of the society.

47
 SUGGESTIONS

On the basis of the problematic issues, mentioned below are a few suggestions that can
be implemented: -

➢ Advertisements should always give correct information about products so that

consumers have a clear understanding on the same.

➢ Celebrities should only endorse products which they know will be in the best
interest of consumers as they are considered to be role models of the society.

➢ Advertisements should be designed in such a way that it reaches out to

consumers of every background.

➢ Advertisements should not provide the consumers with misleading information.

48
49
 CONCLUSION
Advertisement has a worldwide influence the behavior and attitude formation of
consumers not only in India but also worldwide. The consumers of durables products
have their motivational sources which are advertisements and study revealed that
advertisement motivates them to materialize the purchase of durables. The consumers
are induced significantly by advertisements when the target is on quality and price.
Purchase attitude and behavior is influenced by variety of advertisements which cover
product evaluation and brand recognition. The above analysis, we can conclude that the
advertisement has played an imperative role in modern business world to keep the
company profitable and to retain maximum customers. Advertisement also helped in
developing brand and to influence consumer perception. It is also found that brand has
influenced the sales as well it helped organization to develop its marketing strategy by
continuously evolving in brands. Advertisement was remained one of the capital
instruments of marketing. Advertisement strategy needs long term approach according
to budget and expectation of return.

50
 LIMITATIONS

There were certain limitations which proved as a hindrance during the research. The
following are the limitations:

➢ The subject was too large but the time available was very less and limited.

➢ The survey could not be conducted among a large amount of the population in
the area.

➢ At times it was felt that there was a difference between the real feeling and the
feedback given by the consumers.

➢ Some of the consumers were not interested in the subject matter.

51
 BIBLIOGRAPHY

● Loudon L D and Bitta D J A (1994), “Consumer Behavior”, 4th Edition,

McGraw Hill, New York
● Arens, W.F. and Bove’s, C.L (1994), “Contemporary Advertising”, 5th Edition,
Richard D. Irwin Inc
● Featherstone, M (2007), “Consumer Culture and Post Modernism”, 2nd Edition,
Sage Publication, London

REFERENCES

● www.wikipedia.com

● www.gooogle.com

● www.academia.edu

52
 APPENDIX

1. Do you think advertising is affecting consumer behavior?

a) YES
b) NO
c) NEUTRAL

2. Where do you mostly come across advertisements?

a) TV
b) BILLBOARDS
c) RADIO
d) LEAFLETS
e) NEWSPAPERS

3. Which medium of advertisement do you prefer?

a) OUTDOOR (BILLBOARDS, EVENTS)

b) BROADCAST (TV, RADIO)
c) PRINT (NEWSPAPERS, BROCHURES)

4. How often are you exposed to the advertisements?

a) EVERYDAY
b) 3-4 TIMES PER WEEK
c) ONCE IN TWO WEEKS

5. Do you find advertisements unrealistic and exaggerated?

a) YES
b) NO
c) NEUTRAL

6. ‘Advertising is beneficial to consumers because it provides important

information about goods and services. To what extent do you agree with this
statement?

a) AGREE
b) DISAGREE

53
 c) NOT SURE

7. Have you ever changed your perception towards a commodity because of its
advertisements?

a) YES
b) NO

8. What makes you as a consumer change your mind?

a) COLOUR SCHEME
b) PARTICIPATING CELEBRITIES
c) CARTOON CHARACTERS USED
d) BETTER UNDERSTANDING ON PRODUCTS
e) LAYOUT OF THE ADVERTISEMENT
f) SLOGAN/MELODY USED
g) VISUAL MEDIA

9. ‘The more times an advertisement is viewed by a consumer, the more likely the
consumer is to go and buy the product’. To what extent do you agree with this
statement?

a) AGREE
b) DISAGREE
c) NOT SURE

10. Does an advertisement urge you to try a new brand?

a) YES
b) NO

11. What is your level of satisfaction after purchasing an advertised product?

a) Very satisfied
b) Satisfied
c) Neutral
d) Dissatisfied

11. Do you think that the advertisement design could affect the class and/or culture?

a) Yes
b) No

54
 12. Have you ever hesitated to buy a product because of its advertisement?

a) Yes
b) No
c) Neutral

13. Do you think that there is a relation between gender of the consumer and their
ability in feeling the relevancy of the message in the ad?

a) Yes b) No

14. According to you, does celebrity endorsement have a positive or negative impact
on the advertisement of the product?

a) Positive impact
b) Negative impact

55