GROUP PROJECT

CONSUMER BEHAVIOUR

“Effect of advertisement on consumer buying behavior”

Submitted by group 3 members, Submitted to,

Gopika Deepak-20 Dr. G Sandya
Meera jayakumar- 30
Manish madhu- 29
Susmitha santhosh-48
Arun k b-65

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EXECUTIVE SUMMARY
This study was conducted to understand the effect of advertisement on consumer behaviour
and preference. The main objective is to analyze how advertisements can impact the overall
decision making of consumers in choosing the brands as well as products from the market.
Advertisements play a key role in the life of a product. It creates the awareness and
promotion of various products available in the market. This study could analyze how much
an advertisement can influence consumers’ minds and stimulate their behaviour towards
buying decisions. It also focused on how the impact of advertisements can influence the
customers to switch brands to one another. The main source of information or primary data
for the study was conducted through a detailed survey. Detailed questionnaires were prepared
using Google Docs and circulated among different consumers mainly of Kerala and received
100 respondents in total from both urban and rural areas. Most of the respondents belong to
the category Millennials. The question pattern was general to specific and mainly targeted in
collecting the information regarding the influence of advertisements on consumers’ buying
patterns and brand preferences. The major limitation of the study was the number of
respondents and the demography, especially in the Indian scenario the reach of
advertisements to the consumers is different, most of the rural areas are still underdeveloped
and their knowledge and level of influence might be lower as compared to consumers in other
areas. Also, the present scenario of the Covid-19 pandemic has influenced the overall buying
pattern and behaviour of the consumers.

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 CHAPTER -1
INTRODUCTION

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Introduction:
Advertisements are means of communication between the manufacturers of a product to the
general public. According to the Advertising Association of UK, “Advertisements are
messages paid for by those who send them and are intended to inform or influence people
who receive them”.It plays a major role in determining the life of a product or brand in the
market. Most brands consider advertisements as one of the key tools for promotion.
Advertisements mainly create awareness of a product or brand in the market to the
consumers. It has the power to influence the audience and stimulate their buying behaviour
towards the product.
Advertising has three primary objectives: to inform, to persuade, and to remind. Informative
Advertising creates awareness of brands, products, services, and ideas. It announces new
products and programs and can educate people about the attributes and benefits of new or
established products. Persuasive Advertising tries to convince customers that a company’s
services or products are the best, and it works to alter perceptions and enhance the image of a
company or product. Its goal is to influence consumers to take action and switch brands, try a
new product, or remain loyal to a current brand. Reminder Advertising reminds people about
the need for a product or service or the features and benefits it will provide when they
purchase promptly. All these objectives can influence the consumers’ mind and their buying
behaviour.
Consumers can be any individual who purchases products or services for personal use and not
for manufacturing or resale. Consumers are often treated as the “King” of the market, they
have all the power for determining the growth, life and existence of a product or brand in the
market. The consumers are the decision-makers whether or not to buy a product or choose the
brand, or someone who is influenced by advertisement and marketing. Consumer behaviour
is the study of consumers and the processes they use to choose, consume and dispose of
products and services, including consumers’ emotional, mental, and behavioural responses.
Advertisements can highly influence customers’ behaviour and motivate them to choose the
products or brand. Marketers should understand the buying behaviour of consumers while
designing their advertisements for the desired impact. They use different channels to reach
consumers at different times like social media, television, radio, newspaper or even any
printed material to appeal to the consumers. Each channel brings different effects on
consumers' behaviour based on the demographics and characteristics of the consumers. These
different channels also have a different effect based on the consumer stage of decision
making.

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 CHAPTER 2
PROBLEM STATEMENT, OBJECTIVES AND SCOPE

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2.1The rationale for the Study:
The rationale behind the study is to understand how advertising can affect the consumer
buying behaviour choices. The customer attitudes towards a particular ad, their affective and
cognitive responses on seeing the ad will come a part of their buying behaviour decisions.
The features of advertisement, the product brands displayed in the advertisements and the
familiarity with brands will also decide their decisions.

2.2 Problem Statement:

Advertisements has a major impact on the customers purchase choices. Consumers respond
to different advertisements with a different attitude. Different advertisements influence
customers in a different manner. Some particular advertisements which are of the consumer’s
interest seem to make a favourable attitude to them which in turn can affect their buying
behaviour patterns. Some favourable brands advertisements seem to make an affective
responses to the consumers. Some advertisements can lead customers to opt for more
purchase choices which sometimes can negatively influence them. Negative influence created
by a particular advertisement persuade customers to opt for other brand choices. Through this
study, we would like to find out how advertisements can affect the consumer’s decisions and
persuade them to look for a particular brand.

2.3 Research Objectives:

1. To examine the influence of an advertisement on Consumer Buying Behaviour
Patterns
2. To propose the factors that play a key role in consumer decision making on Buying
patterns.
3. To determine whether advertising affects brand switching
4. To determine if advertisements lead to unnecessary purchases.

2.4 Research Questions:

1. What are the affective and cognitive responses of the consumers when they view a
particular advertisement?
2. What impact does the advertisements have on consumers?
3. What makes the consumers to opt for a particular brand?

2.4 Scope of the Study:

The study was done to find out the influence of advertising on consumer buying behaviour
patterns. This study will help to analyze various factors that play a key role in consumer
buying behaviour patterns. The result of the study will help in analyzing the positive
correlation between advertisements and consumer buying behaviour. Brand Recallation has a
great impact on the consumers and it generates a positive attitude among them.

2.5 Limitations of the Study:

 Sample size was limited to 56 respondents.
 The present Covid 19 era made a differing attitude towards consumer buying
behaviour patterns.

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 CHAPTER -3
LITERATURE REVIEW

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3.1 Review of literature:
“Elements of Advertisement and their impact on the buying behaviours : A study of
Skincare products in Malaysia” – Muhammad Tahir Jan, Ahasanul Haque, Kalthom
Abdullah, Zohurul Anis, Faisal E Alam (2019)
The study analyzes the impact of Advertisements on Consumer Buying behaviour pattern on
Skincare products. Data was collected from almost 428 people in Malaysia and the
instrument used for data collection was Structured QuestionAires. Frequency tests,
Reliablility test and Hypothesis testing was conducted as part of the study to come up with
relevant findings. The findings reveal that 2 elements of advertisement has a major impact on
the consumer buying behaviour patterns. They are advertisement uses and features. These
findings can be looked forward by marketers while making a suitable marketing plan for
marketing their products.
“Effects of Advertisement on Consumer Buying behaviour with reference to FMCG’s in
Southern Punjab -Pakistan” – Prof Dr. Abdul Ghafoor Awan, Muhammed Ismail,
Captain Fauzia Majeed and Farisa Ghazal (2016)
The main objective of this paper is to understand the influence an advertisement can have on
Consumer buying behaviour patterns and also to find out the factors that play a vital role in
developing the consumer preferences towards a particular product. The study was conducted
in 5 cities: Bahawalpur, Hayyah, Tounsa, Bhakhar and Multan. 250 questionaires were
distributed among people in these five cities. The responses were measured on a five point
likert scale. Techniques like Correlation analysis and Regression analysis were used for
analyzing the data. The findings from the study reveal that factors like the pleasure of
advertisements, brand recalling from advertisements played a major impact on the consumer
buying behaviour patterns.
“How Advertising affects the buying behaviour of Consumers in Rural Areas: A Case of
Pakistan” – Fazal ur Rehman, Tariq Nawaz, Aminullah Khan, Shabir Hyder (2014)
The study aimed to identify the buying behaviour patterns in rural areas of Pakistan. This
study had taken two factors which are: affects of advertisements and some factors of rural
areas to analyze the consumer buying behaviour pattern. It was conducted in the rural areas of
Lakhi Marwat. Sample size taken for the study was 500 people which included students,
teachers and professionals. The data collection instrument used was Structured
QuestionAires. Data Analysis was done through Correlation Statistics and Simple
Regressions. The findings from the study reveal that advertising has positive effects on the
buying behaviour whereas factors of rural areas had a negative effect on the consumer buying
behaviour pattern.

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 CHAPTER -4
RESEARCH METHODOLOGY

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4.1 Research Design:
The research design allows the researcher to decide on the research methodology that is
suitable for the topic of their study. The research design used in this particular study is
descriptive.

4.2 Data Sources:

Data can be defined as a quantitative or qualitative value of a variable. Data itself cannot be
understood and to get information from data one must interpret it into meaningful
information.
Data sources are classified into Primary and Secondary.
Primary data sources: This type of source uses surveys or experiments or any other direct
observations. The primary data used for this study is the data collected from Structured
questionaires.
Secondary data sources: This type of source may be conducted by collecting information
from a diverse document or accessing electronically stored information. The secondary data
used for this study is the data collected from onlines sites.

4.3 Sampling Design:

 Research Type: Descriptive Research
 Sample Size: 100
 Sampling Method: Convenience Sampling
 Type of study: Cross- sectional study
 Sampling Area: Simple Random Sampling
 Data Collection Method: Primary and Secondary data Sorce.

4.4Therotical Framework
Dependent variables:
 Consumers Buying Behaviour
Independent variables:
 Familiarity
 Brand Recall
 Sensory Stimulus
 Brand Features

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4.5 Research Model:

Familiarity

Brand Recall

Consumer Buying
Behaviour

Sensory
Stimulus

Brand
Features

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 CHAPTER -5
DATA ANALYSIS AND INTERPRETATIONS

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5.1 Regression analysis
 Model summary

Table -1: Regression statistics

From the regression analysis we can see that coefficient of correlation (R) shows that there is
a positive correlation between dependent and independent variables.
Coefficient of determinant (R^2) has a value of 0.42, which shows that there is a 42% of
variations in dependent variables can be explained by the independent variables.

 Coefficients

Table -2: Coefficient values

Slope equation,
Y= 0.097+0.556 (Familiarity) +0.013 (Brand recall) + 0.007 (Sensory stimulus) + 0.589
Inference
 Brand recall is have a 41% effect on the consumer buying behavior.
 Sensory stimulus is also having 41% effect on the consumer buying behavior.
 Brand recall is having a significant p-value of 0.013, which is less than 0.05.
 Sensory stimulus shows significant p-value of 0.007, which is less than 0.05.

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5.2 Media of advertisements

RANK MEDIA NO OF PEOPLE PREFER

1 TV 51
2 Mobile 12
3 Social media 11
4 Magazines 9
5 Internet 7
6 Website 4
7 Newspaper 2
8 Radio 4
Table -3: Respondents response based on how the respondents like to receive
advertisements
Based on the responses we have ranked the factors, in which TV advertisement has selected
by majority of the respondents.
Mobile and social media advertisements are followed next with total of 23 responds.

5.3 Influence of advertisements

How much does advertising influence your buying behaviour?

3.57

46.43

50

medium influence large influence small influence

Fig-1: Chart showing the responses for the question “How much does advertising influence
your buying behavior”
From the above diagram we can see that almost 50% of people think that advertisements are
having large influence in their buying decisions during purchasing while 46% of people
believe that they are having a medium influence of advertisement and 4% of people are only
having small influence of advertisements.

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5.4 Factors affecting buying decision

In an advertisement, what do you look for?

14.29 14.29

32.14
37.5

product information celebrities and famous people

discounts price information

Fig-2: Chart showing the responses for the question “In an advertisement what do you look for?”
From the above diagram 38% people responded as they look for discounts in an
advertisement. 32% are influenced by the celebrities or famous people in advertisements.
And 15% of people responded they are looking for product information as well as price
information in an advertisements.

5.5 Influence of advertisements in purchasing

Advertising often leads to unnecessary purchases by consumers

17.86

16.07

66.07

Agree Disagree Not sure

Fig-3: Chart showing the responses for the question “Advertising often leads to unnecessary
purchases by consumers?”
From the above diagram 66% of people agrees that the advertisements are leading to
unnecessary purchasing behavior in consumers. 16% respondents have an opinion that the
advertisements are not misleading towards unnecessary purchase. While 18% of respondents
are not sure about the unnecessary purchase behavior of consumers due to the advertisements.

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5.6 Familiarity of advertisements

A consumer is more likely to buy a product if he or she views the

advertisement more times

20

10

70

Agree Disagree Not sure

Fig-4: Chart showing the responses for the question “A consumer is more likely to buy a
product if he or she views the advertisements more times?”
From the above diagram the 70% of respondents agrees that by watching an advertisement
more number of times the chance of consumers buying behavior towards that product is
more. 20% of respondents are not sure about this and 10% disagrees to the statement.

5.7 Purchase behaviour

Are you likely to buy new brands' products after seeing ads?

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89

Yes No

Fig-5: Chart showing the responses for the question “Are you likely to buy new brands
product after seeing ads?”
From the above diagram 89% said yes to the question that they are likely to buy a new brand
after watching the advertisement and 11% disagrees to the question, they are not ready to buy
a brand just after seeing the advertisements. They may look for the product information and
reviews before buying the new brand.

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CHAPTER -6
FINDINGS

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Findings:
1. The factors such as Brand recall and Sensory stimulus that plays key role in consumer
decision making is have a 41% effect on the consumer buying behavior.
2. 50% of the respondents are having large influence of advertisements.
3. Advertisements are promoting the brand switching in consumers as the 89% of the
respondents says that the advertisements are leading to the brand switches.
4. Advertisements are leading to unnecessary purchasing behavior in people as the 66%
of the respondents agrees to it.

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 CHAPTER -7
RECOMMENDATIONS

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Recommendations:
1. The brands must focus on increasing the familiarity of the brand.
2. The advertisements must try to connect the people through their emotions.
3. As the customers are having short memory for recalling the brand, brands should
frequently advertise their brands.

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CHAPTER 8
CONCLUSION

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Conclusion:
This study was based on the analysis of the effect or impact of advertisements on consumer
behaviour. Sample size of 100 was considered and data was collected about various aspects
like the influence of advertisements in purchasing, factors affecting buying decisions, the
familiarity of advertisements etc. It was found out that advertisements create a higher
influence over consumer buying behaviour. The majority of the consumer sector considers
advertisements as the main source of information about the new products and brands in the
market. It was also revealed that advertisements often lead consumers towards unnecessary
purchases of products from the market. This could be a piece of great information for the
brands to promote more through advertisements and creates a higher number of purchases,
the consumers are likely to buy products by observing the advertisements frequently.
Advertisements also play a critical role in brand competition, it was found out that the
advertisements influence the consumers to brand switching. This study could accomplish its
key purpose to understand the influence of advertisements on consumer buying behaviour. It
could be useful for marketers and advertisers to determine the right way to use the
advertisements and reach the maximum number of consumers and promote their products and
services. The study gave a detailed idea and understanding about the importance of
determining consumer behaviour in marketing especially through certain promotional
activities like advertisements.

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 CHAPTER 9
REFERENCES

Reference:

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1. [ CITATION Muh193 \l 16393 ]

2. [ CITATION Pro161 \l 16393 ]

3. [ CITATION Faz14 \l 16393 ]

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