BRM Impact of Advertisement
BRM Impact of Advertisement
BRM Impact of Advertisement
A project Report
Submitted in partial fulfilment of the requirements for the
award of the Degree of
Chapter 4 Research 7
Methodology
Chapter 8 Reference 24
1
Impact of advertisement in influencing purchase decisions
of youths.
Abstract
The purpose of this research is to investigate the influence of advertisement on the purchase
decision of smartphone by youth. The proposed research work examines advertising impact
on youth on different aspects such as the platform of advertising, celebrity endorse,
creativity of advertisement. The research has found out that how these new era of
advertisement compel youth to react at different levels because of the modern ways of
exposure of smartphones through advertising. The major hypothesis of study is” the more
exposure to advertisement for smartphones and the more innovatively presentation of
smartphones advertisement, the greater impact/persuasion there would be on purchase
decision of youth”. It is crucial to understand the factors that motivate consumers to interact
with smartphone advertisements and therefore what stimulates their decision to purchase.
The study was conducted in ISB&M and it investigated the “Advertisement becoming too
powerful in influencing purchase decisions of youths” through survey using questionnaire as
a tool of data collection. It will included 90 respondent which is from different states along
with demographic characteristics like gender and age of the respondents. For this research,
we have a set of questioners’ which is designed to understand the youth purchase decisions
on different parameter. The statistical test Chi-Square will be used for testing the hypothesis.
Furthermore, data analysis has been carried forward with the help of SPSS through
regression and correlation. However, strong correlation only exists between advertisement
and attitude towards advertisement and consumer purchase decision. The results and
findings will be discussed in the light of Youth response towards advertisement and empirical
evidences available. The findings of the study revealed.
Introduction
Today we are living in an advertising age, we see advertisements all around us. There is
bombardment of advertisement on the consumer of smartphones. Criteria of popularity of
any smartphones are the quantity of ads sponsored on different media. Today every
smartphone company use different media platform (From social media to YouTube, event
promotion etc.) for advertisement and creating buzz among the consumers and to attract
youth who love innovation. On the other hand, in print media there is bundle of
advertisements publish on daily bases even some time lower half of the front page.
Advertising is a form of communication that is used to persuade the consumers (target
audience) to take some action with respect to their smartphones. India smartphone market
shipped 142.3 million units in 2018, registering a healthy 14.5% year-on-year (YoY) growth
as compared to 2017. After a strong quarter of 2018Q3, the smartphone market saw a
sequential decline of 15.1% in 2018Q4 owing to high channel inventory, but saw a healthy
annual growth of 19.5%, driven primarily by multiple rounds of sales by e-retailers beyond
the festive Diwali period lasting into December.
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The market share of smart phones is shown in Fig. It is seen that companies like Samsung,
Vivo, Oppo, Xiaomi etc. command a major share of the market. They together have around
68.5percent share of the total smart phone pie.
The review of previous work brings out that even though a lot of work has been done in this
field, still there is a dearth of empirical studies in India and also no specific studies targeted
at youth were found. With a massive proportion of population of India being young,
empirical data on their consumer behaviour and purchase decision through advertisement is
of particular interest to marketing professionals. Therefore this study is done on ISB&M
students, which belong to different part of the country.
Review of Literature
1). According to Buzzell and Wiersema –
a) Additional advertising normally increases sales but, at some point, the rate of return
declines.
b) Sales response to advertising may build over time, but it is not durable, and a
consistent investment is important.
c) There are minimum levels of ad expenditure below which advertising expenditure
has no effect on sales.
d) There will be some sales even if the marketer does not advertise.
e) Culture and competition impose saturation limits and beyond this no amount of
advertising can increase sales.
Research indicates that in consumer goods marketing, increase in market share is more
closely related to increase in marketing budget than reduction in prices.
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Advertising objectives are totally separate from marketing objectives and the focus is on
communication objectives that contribute to accomplishing the marketing objectives. It is
logical to determine the impact of ad expenditures on the accomplishment of the
communication objectives such as awareness, interest, attitude change etc. which may
serve as the basis of the advertising programme as these factors may lead to sales.
2). Chebat J., Charlebois and Chebot c. quoted in their article that Consumers change their
attitude all the more when the message relates to their own personal experience, which in
turn depends on their own prior knowledge. They further reported that low involved
consumers may reach information processing levels as deep as highly involved consumers.
Also they found a striking contrast between the effects of open vs closed conclusion
messages on attitudes under open conclusion conditions. Depth of information processing,
some involvement in dimensions, and prior knowledge enhances the attitude towards brand
and the intention to buy.
3). Obermiller and Sawyer mentioned in their research that a positive ad picture, relative to
a negative one, resulted in more and earlier search for the advertised brand. Perhaps most
important, ad picture likeability led to significantly increased choice of that brand.
Consumers, influenced by affective ad elements, would be biased to search the advertised
brand information relatively early and then stop short of examining information on all other
brands, which would increase choice if the advertised brand.
4). According to Banerjee and Bandopadhyay, in the absence of the small brand advertising,
larger brand shares encourage firms to allocate higher expenditure on advertising to
enhance the perceived brand value of their brand, which in turn shore up the average prices
in the industry from which both firms benefit.
5). The attempts of using the wireless network as a new advertising media are rapidly
increasing. This paper proposes a framework for understanding the characteristics of
advertising through mobile phones. The paper discusses the traits of online advertisements
and comparison to other advertising media. It also presents the overview of different
conceptual models for advertising and suggests a conceptual model for mobile phone
advertising. A review is presented on the factors affecting the effect of mobile advertising
and three groups of factors are suggested; advertisement; audience; and environment. (By
Mahesh Singh Chauhan – Researcher in impact of advertisement)
6).The previous research as provided us with diverse information about the impact of
advertisement on consumers. It is seen to influence consumers in a positive way by grabbing
their attention and creating a lasting impression. However, in some cases the impact was
negative. In this research we will attempt to find out if these varied impressions about
entertaining advertisements really have any impact on consumer’s buying intention.(By
Rakesh Singhania – Student at Delhi university)
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7). Social role and image reflects that ads influence individual life style and the extent to
which an individual seeks to present him or herself in a socially acceptable manner. In
addition to selling products and services, ads sell image and life style. Consumers learn
about new life style, image and trend through ads (Pollay & Mittal, 1993; Burns, 2003).
Advertising promote social messages and life style through illustrating the position of ideal
consumer and stimulate social action toward purchase of that product.(By Geeta Kamath-
Asst.researcher on change in purchasing pattern)
8). Advertising spending also creates positive impression about a brand in the minds of the
consumers. Aaker and Jacobson (1994) also find a positive relationship between advertising
and perceived quality. Hence, advertising spending is positively related to perceived quality,
which leads to greater amount of purchase from that brand as consumers generally prefer
to purchase from a well know brand in order to avoid disappointments over quality.(By
Tarun walia – researcher on change in consumer behaviour)
The review of previous work brings out that even though a lot of work has been done in this
field, still there is a dearth of empirical studies in India and also no specific studies targeted
at youth were found. With a massive proportion of population of India being young,
empirical data on their consumer behaviour and purchase decision through advertisement is
of particular interest to marketing professionals. Therefore this study is done on ISB&M
students, which belong to different part of the country.
Objectives
1) To analyse the influence of advertising on purchase decision of youth.
2) To study the role of advertising in buying process.
SCOPE
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LIMITATION
Hypothesis
The designed hypothesis for the present research prepared are as follow:
H1: The more exposure of smartphones advertising, the greater would be the changes in
consumer purchase decision.
H2: Youth consumers are likely to have more effects of advertisement on their decision of
purchase a smartphone.
H3: The more exposure of Internet advertisement and mobile marketing, the more adoption
of smartphone in real life among consumers.
H4: Having celebrity and the creative ways of advertisement and with creation of buzz of
latest smartphones attract more youths.
This is the age of media, and advertising is considered as the backbone of media industry.
Internet, social media and television is the most popular medium among the youths. Internet
and social media advertisement have huge impact on consumer behavior that exposed to their
purchase behavior. The company use different advertising techniques and persuasive abilities
to manipulate the consumer’s psychology. Today’s advertising and advertising industry gain
a lot of importance because of their creative thinking and the way of presentation of any new
smartphones among the youth is reason for changing youth purchase decision. So the focus of
this research is to find out that how and to which extent advertisement of smartphones
influence or change consumer purchase decisions and how these advertisement giving
awareness, changing attitudes and compelling youths to adopt specific smartphones of that
company.
This study is designed to find out impact of advertisement of smartphone companies with a
focus on determining these effects on Indian youth belong to different states and all are
studying. The research is important as there was a common apprehension in our industry that
advertisement have less impact on youth purchase decisions. The intensity of these
smartphones impacts becomes higher where the buzz of the smartphone is created more.
Unfortunately, very little attention had been given on such topics in the past.
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Research Methodology
Keeping in view the nature and requirement of the present study, questioners research method
has been adopted to explore and examine that to which extent youths are influenced by
advertisement regarding smartphones. In the present study, we have applied the questioner’s
method to obtain the data that is qualitative and quantitative in nature from small
representative but diverse population. The questioner’s method has aided us in collecting
information directly from the youths having a smartphone so a proper analysis could be made
to analyse the effects of advertisement on their purchase decisions. The effects on their
behavior have hence figured out through the information provided on a qualitative scale
which is converted into quantitative scale. This research is conducted during Febraury2019 to
March2019. The data was collected and analysed in March 2019. We have selected ISB&M
students as field of study. It consists of heterogeneous population comprising Delhi, UP,
Rajasthan, MP, and Gujrat etc. who speak different languages and having different purchase
pattern. We are interested in collecting data from large population but due to time and other
constraints, it was not feasible for us to approach the total population of study, therefore, we
have applied convenient sampling technique for data collection. The sample size consists of
46 male and female youths of ISB&M. In this research, open and close ended questionnaire
was employed as a tool for data collection. In order to analyse the data, researcher has used
the Statistical Package for the Social Science (SPSS). In addition, MS Word and Excel were
used for designing tables, graphs, charts and writing the script of this research.
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ABOUT THE STUDY
Nowadays, marketers are strongly relying on the advertising strategy of making the business more
effective and competitive. If we take a deeper look on the strategies followed by the businesses, the
core of the strategy will be the youths, who are strongly influenced by the influenced by the
advertisements and changing their purchasing behaviour on the basis of current trends and changing
market strategy.
Teenagers as we know them today have only been a distinct part of the population since the 1950’s.
A burgeoning youth culture in film and popular music celebrated the years when young people were
no longer children, but not quite adults. Young people suddenly became very conscious of their own
identity.
At that time, a booming post war economy meant that many teens had disposable incomes. Eager to
express themselves, they began to buy clothes, grooming products, and entertainment like never
before. Marketers noticed the trend and started to design products and ads designed specifically for
teens.
YOUTH MARKETING
Youth marketing is any marketing effort directed toward young people. This group is
typically broken down into smaller segments depending on their age, including tweens,
teenagers, college students, and young adults aged 23-34. Each market segment has
products and ad campaigns that are targeted specifically for them.
This advertising strategy is not limited to any one marketing channel or technique. Youth
marketing takes place on TV, radio, in print and in dozens of forms online. Companies often
sponsor extreme athletes, musicians, and high school sports teams as a way to insert
themselves into youth culture. Authenticity is particularly important to the young -- they
want the brands they support to reflect their values and tastes.
Young people make such valuable consumers because they influence the purchasing
decisions of their friends and family. In addition to being consumers themselves, teens can
affect where their family goes on vacation, the car they choose to buy, and the clothes that
their friends wear. If a product or brand is popular with young people, it gains an image of
being “cool.”
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CULTURAL FACTORS
Culture:
Exert the maximum influence on consumer behavior. Culture is the basic determinant of a
person wants. It refers to a set of learnt beliefs, values, attitudes, customs, habits and other
forms of behavior that are shared in society.
Sub Culture:
Each culture consists of smaller subcultures that provide more specific identification and
socialization for its members. They are four types of subcultures they are:
Nationality groups
Religious groups
Racial groups
Geographic groups
Social Class: It is the divisions of people in the society, which are hierarchically ordered, and
its members share similar values and behavior.
SOCIAL FACTORS
Reference Group
They are the social, economic or professional groups that have a direct or indirect
influence on the person‘s attitudes or behavior. Consumers accept information
provided by their peer groups on the quality, performance, style etc of a product.
These groups influence the person‘s attitudes and expose them to a new behavior.
Family
It is the most influential group as the attitudes, habits and values are shaped by the
family‘s influence. The members of family play different roles such as influencer,
decider, purchaser and user in the buying process.
Roles and Status
Roles represent the position we feel we hold or others feel we should hold when
dealing in a group environment. These positions carry certain responsibilities The
consumers buying behavior is also influenced by the roles and status of person. It
influences a person in taking a certain decision.
PERSONAL FACTORS
Age
According to Russell People buy different goods and services over their lifetime. The
lifecycle of a person is infancy, adolescence, teenage, adult middle age and old age.
In each stage the persons buying behavior is different. The person is dependent on
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others during the first three stages, then in the next stage he not only takes
decisions but also influences others buying decisions and in the last stage of the life
cycle the decisions are again made by others.
Occupation
It also influences his or her consumption pattern because occupation decides his
ability to buy
Economic circumstances
Products choice is greatly affected by ones economic circumstances. People‘s
economic circumstance consists of their spend able income, savings, assets, debts,
borrowing power and attitude towards spending versus saving.
Lifestyle
It is the pattern or way of living of a person. This will be indicated through the
person‘s activities, interests and opinions.
PSYCHOLOGICAL FACTORS
Motivation
Motivation relates to our desire to achieve a certain outcome. For instance, when it
comes to making purchase decisions customers‘ motivation could be affected by
such issues as financial position (e.g., Can I afford the purchase?), time constraints
(e.g., Do I need to make the purchase quickly?), overall value (e.g., Am I getting my
money‘s worth?), and perceived risk (e.g., What happens if I make a bad
decision?).Psychologists have developed theories of human motivation. The best
three motivation theories are given by Sigmund Freud, Abraham Maslow and
Frederick Herzberg.
Perception
A motivated person is ready to act. How the motivated person actually acts is
influenced by his or her perception of the situation. To perceive is to see, to hear, to
touch, to taste, to smell and to sense something so as to find meaning in the
experience. People can emerge with different Perceptions of the same object
because of three perpetual processes that is selective retention, selective attention
and selective distortion.
Learning
Involves changes in an individual‘s behavior arising from experience or practice.
Most human behavior is learned. It is produced through the interplay of drives,
stimuli, cues, responses and reinforcement.
Beliefs and Attitudes
A belief is a descriptive thought that a person holds something. Through doing and
learning, people acquire beliefs and attitudes. These in turn influence their buyer
behavior. The beliefs may be based on knowledge, opinion, or faith. They may or
may not carry an emotional charge.
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ADVERTISING
While watching a movie in the cinema hall or a television at home you must have noticed
that suddenly there is a break and a model appears on the screen displaying a product,
indicating its special features, prices etc. This is followed by similar appearances relating to
other products before the movie is resumed. These displays are known as advertisements
which are used by different firms to inform a targeted group of customers about their
product, its quality, availability, price etc. Likewise, you come across a number of
advertisements for a variety of products in the newspapers and magazines. These are
impersonal messages duly paid for, by firms to an audience who may be the current or
prospective buyer of goods.
Marketers spend a large sum of money on advertising and face a major challenge in
influencing the purchase decision of consumers favourably towards their product or service.
The final goal is to influence the purchase decision of consumers as most marketers realize
that purchase decision is the end result of a long process of consumer decision making.
Consumer buying process is the complex process and includes the problem recognition,
information search, evaluation of alternatives, purchase decision and post purchase
evaluation. Advertisers need to know the specific need that consumers are striving to satisfy
and how these needs translate into purchase criteria, how consumers collect information
from various sources and how this information is used to select from among competing
brands and a purchase decision is taken.
The subject of the effect of advertising on the consumer demand is complex. It is believed
that economic and social factors effect on consumer demand. Along with these factors
advertising pushes the consumer demand. Advertising is a potent communication tool
which plays a very important role in consumer decision making. Advertising is meant to
convey a message to the prospective customer or the audience. Advertising acts as an
advisor and the message is the factor of conversion meant to bring about the person
towards the product and its purchase.
Advertising is the communication link between the seller and the buyer or the consumer. It
does not simply provide information about products and services but is an active attempt at
influencing people to action. In other words, advertising does not end with the flow of
information from the seller to the buyer; it goes further to influence and persuades people
to action.
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DATA ANALYSIS AND INTERPRETATIONS (selected questions)
Interpretation:
One plus is the most favourable brand as per advertisement in the era of smart phones.
Hence it can be interpreted that one plus is using the most effective advertisement strategy
than its competitors.
Interpretation:
Features of the brand is considered as the reason for the favourableness of the brand and
hence attracted the customers.
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Interpretation:
Internet is considered to be the most effective medium of advertisement preferred by the
students in influencing the purchase decisions of the youths.
Interpretation:
The curiosity among the youths about the product was noticed to be very high in influencing
the purchase decision of the youths in smart phones.
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Interpretation:
50% of the people agree on the fact that advertising is becoming more powerful in
influencing the purchase decisions of youths than any other channels of promotion.
Interpretation:
People are neutrally confident about using advertisement as a source of information for
making their purchase decision which shows that advertisements should be made more
informative and provide relevant information to the customers.
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Oneway
Sum of Mean
Squares df Square F
Gender Between
.314 4 .079 .303
Groups
Within
10.118 39 .259
Groups
Total 10.432 43
Fav_Brand Between
.230 4 .057 .093
Groups
Within
24.202 39 .621
Groups
Total 24.432 43
Reason Between
1.762 4 .440 .894
Groups
Within
19.216 39 .493
Groups
Total 20.977 43
Adv_to_brand Between
5.041 4 1.260 2.038
Groups
Within
24.118 39 .618
Groups
Total 29.159 43
Aspect_rememb Between
6.407 4 1.602 1.611
red Groups
Within
38.775 39 .994
Groups
Total 45.182 43
15
Within
10.388 39 .266
Groups
Total 11.159 43
Rely_adv Between
8.844 4 2.211 3.638
Groups
Within
23.701 39 .608
Groups
Total 32.545 43
Purchase_celebr Between
1.674 4 .419 1.988
ity Groups
Within
8.212 39 .211
Groups
Total 9.886 43
Purchase_revie Between
1.568 4 .392 1.837
w Groups
Within
8.319 39 .213
Groups
Total 9.886 43
Adv_Relevant Between
4.725 4 1.181 .930
Groups
Within
49.525 39 1.270
Groups
Total 54.250 43
ANOVA
Sig.
Within Groups
Total
16
Within Groups
Total
Within Groups
Total
Within Groups
Total
Within Groups
Total
Within Groups
Total
Within Groups
Total
Within Groups
Total
Within Groups
Total
Within Groups
Total
T-Test
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Paired Samples Statistics
Purchase_celebrit
2.16 44 .479 .072
y
Purchase_celebrit
2.16 44 .479 .072
y
N Correlation Sig.
18
Pair 5 Adv_decision &
44 -.031 .840
Purchase_celebrity
Paired Differences
95%
Confide
nce
Interval
of the
Differen
Std. Std. ce
Mea Deviati Error
n on Mean Lower
Pai Adv_decision -
1.75
r 1 Purchase_revi 1.203 .181 1.384
0
ew
19
Pai Adv_Medium
-.591 .757 .114 -.821
r 4 - Fav_Brnd
Pai Adv_decision -
r 5 Purchase_cele .932 1.108 .167 .595
brity
Pai Purchase_revi
r 6 ew -
-.818 .786 .118 -1.057
Purchase_cele
brity
Paired
Differences
95% Confidence
Interval of the
Difference
Pair 1 Adv_decision -
2.116 9.648 43 .000
Purchase_review
Pair 2 Adv_decision -
2.114 11.372 43 .000
Adv_Medium
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Pair 4 Adv_Medium - Fav_Brnd -.361 -5.178 43 .000
Pair 5 Adv_decision -
1.269 5.578 43 .000
Purchase_celebrity
Pair 6 Purchase_review -
-.579 -6.907 43 .000
Purchase_celebrity
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conclusion that gender of our sample population in within and between group designs is
significant over less than 95% confidence interval.
The favourite brand, reasons for choosing favourite brand and how much the brand have
impact by advertisements are in the confidence interval in within and between the group
design and these are significant to the entire population.
The relevance of advertisements over the consumer behaviour by the respondents from the
study is less than the confidence interval of 95% which means according to our sample size
does not have much relevance by the advertisements on their purchase decisions but the
medium of advertisements have much impact on the respondents as it is outside the
confidence interval. Also the purchase review in between and within the group designs
shows that the purchase review have significant impact on the respondents.
So, by doing both the statistical test by taking same null and alternative hypotheses and
confidence interval of 95% and in both the tests the null hypotheses is rejected due to
failing to fall in the confidence interval and therefore we are bound to accept the alternative
hypotheses that is “Are advertisement become too powerful?”
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Findings
In this study a sample size of 46 smart phone users was surveyed. A majority (63 percent)
were male and the rest female. Most of them were in the age group of 21-30. A vast
majority (63 percent) were satisfied that advertisement of smart phone influenced them to
take purchase decisions. 76 percent of smart phone respondents were ready to buy a new
smart phone in near future based on the brand name, features, and the creative
advertisement this all have a strong impact on smart phone buying decision. One Plus,
Samsung and Apple are the most preferred brands. A majority of respondents were ready to
consider change in brand if they found better features in some other brand. A third of the
respondents said that they will buy same brand of smart phone in future also. 54 percent of
Respondents were very satisfied that brand image and prestige associated with owning the
smart phone. Only 6.5 percent of respondents were dissatisfied on this account. All the
presented findings have been contrasted taking into account the gender.
Conclusion
The findings presented in the previous section shall help advertisers, marketing and sales
professionals, as well as product designers to plan and execute their product plans in a
professional manner and design the advertisement is more creative way to attract youth
and before launching the smartphone company must create huge buzz through
advertisement so that large section of youth is influenced and keen to buy that smartphone
which add value to owing such smartphone. The study is targeted towards young male and
female respondents which gives a clear idea about their smart phone usage, buying
behaviour and influence of advertisement on purchase decision. Since youngsters are the
most important segment for consumer electronics market the present study is of vital
importance not only in the short term but also for in the long term. Hence we can conclude
that advertising is becoming powerful in influencing the purchase decision of youth for
smartphones.
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