RESEARCH METHODOLOGY PROJECT
Section C - Group 2 (Batch 2021-23)
NAME PRN EMAIL ID
THE POWER OF ADVERTISEMENT IN CONSUMER BEHAVIOUR
INTRODUCTION
Advertising is a way of communication to encourage an audience for making purchase decision
about a product or service and conveying information to viewers. It is considered as a vital and
essential element for the economic growth of the marketers and businesses. Advertising is
usually a paid form of exposure or promotion by some sponsor that reaches through various
traditional media such as television, newspaper, commercial radio advertisement, magazine
mail, outdoor advertising, or modern media such as blogs and websites. Marketers have always
adapted to changing business demands when it comes to creating new advertisements. The use
of advertisements has significantly increased in the 20th Century as industrialisation expanded
the supply of manufactured products. However, not many businesses practiced advertising at
the time. During the late 80s advertisements were fairly limited to television, radio, billboards,
and newspapers. In the modern times, businesses are leaning towards Digital Advertising.
Companies are so focused in social media and mobile advertisements that they may take over
Television advertisement very soon. In many countries, the trend of Digital Marketing is just
on the bloom. Most large local and multinational giant companies are now practicing digital
marketing in full swing. Previous studies have been conducted on effectiveness of
advertisement and on advertisement’s impact on consumer buying behaviour which depicted
positive relationships
Sponsors of advertising are typically businesses wishing to promote their products or services.
Most advertisement is directed toward groups rather than individuals, and advertising is usually
delivered through media such as television, social media, and newspapers. Advertising is a
very old form of promotion with root that go back even to ancient times. Advertising creates a
personal and efficient method of reaching a particular audience. Advertising reminds customers
of benefits from the business product and services
PROBLEM STATEMENT
Identifying the power of advertisements in consumer decision making to buy a product.
RESEARCH QUESTION
Comparing different companies from different sectors by selecting a company in such a way
that its products should create an impact on the consumer’s behaviour.
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The sectors are:
Food sector- Cadbury, Nestle
Health care sector- Kent, Pure it
Cosmetic industry- Lakme, Gillette
RESEARCH OBJECTIVE
How the power of advertisements affects the consumer behaviour.
INTRODUCTION TO REVIEW OF LITERATURE
A literature review is the synthesis of the available literature regarding your research topic.
This synthesis merges the conclusions of many different sources to explain the overall
understanding of the topic, thus laying a foundation for both the research question and primary
research. Although a literature review will cite sources and should discuss the credibility of the
sources included, it is more than an annotated bibliography. Literature review needs to review
all the significant sources on a topic, regardless of whether they support the claims you will
eventually be working toward. For understanding work already done with respect to this topic,
we have gone through following papers:
1. Impact Of Advertisement on Consumer Buying Behaviour (Shradha Shetty, Sowmya, Dr.
Umesh Maiya)
2. The Impact Of Advertising On Consumers Buying Behaviour (B.A. Chukwu,E.C. Kanu
A.N. Ezeabogu)
3. Impact Of Media Advertisements on Consumer Behaviour (Ramzan Sama)
4. The Effect of Viral Marketing Messages on Consumer Behavior (Jay Trivedi)
5. A Study on the Influences of Advertisement on Consumer Behaviour. (Tashrifa Haider,
Independent University Dhaka Shadman Shakib, Masters Independent University)
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SUMMARY OF LITERATURE REVIEWED
Impact of Advertisement on Consumer Buying Behaviour
Objective of the report
To study the impact of advertisement on consumer buying behavior and the power of
persuasion in advertisement to buy a product.
To identify the most preferred advertisement media by the people
Authors
Shradha Shetty, Sowmya, Dr. Umesh Maiya
Year of Publication
2019
Place of Publication
Dr. G. Shankar Government Women’s First Grade College and PG Study Centre, Ajjarkadu,
Udupi
Research Methodology
Design - The research design is done by circulating questionnaire, data has been collected
through structured questionnaire and rest is from internet, journals, articles, and books.
Sample size - The total samples collected where 150 covering are around Udupi Mangalore,
Bangalore, and Mumbai
Sample unit – Impact of advertisement on consumer buying behavior
Sample technique- Structured Questionnaire
Statistical Tools
Chi-square test, Likert’s 5point scale, Rank function, Tables, Bar graphs and Pie charts.
Hypothesis
1. There is no significant impact of advertisement on consumer buying behaviour
2. There is significant impact of advertisement on consumer buying behavior
Major Findings
The total respondents for the survey are 150 among them 105 respondents,
75% respondents most preferred advertisement media is television
18% respondents prefer social media platform
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6% respondents most preferred advertisement medium is print media
Remaining 1% prefer email
Conclusion
It can be concluded that advertisement has significant impact on consumer buying behavior.
This research paper can be helpful to know the most preferred advertisement media, influence
of advertisements on shopping trends, most remembered aspects of advertisements and much
more.
The Impact of Advertising on Consumers Buying Behaviour
Link : https://ijac.org.uk/the-impact-of-advertising-on-consumers-buying-behaviour/
Objective of the report
This study attempts to determine the impact of advertising on consumer buying behaviours. In
specific terms, the objective of the study is:
1. To identify the effect of emotional response on consumers buying behaviour.
2. To ascertain the effect of environmental response towards brand on consumer
buying behaviour.
3. To determine the effect of Brand awareness on consumer buying behaviour
4. To identify the effect of sensory stimulated advertising on consumer buying behaviour.
Authors
B.A. Chukwu, E.C. Kanu, E.N. Ezeabogu
Year of Publication
2019
Place of Publication
International Journal of Arts and Commerce, UNITED KINGDOM
Research Methodology
Design - A survey research design was used in this study to gather information or data from
consumers in Enugu metropolis through questionnaire instrument. The population of the study
comprised all consumers in Enugu metropolis. A non-probability purposive sampling
technique was used in this study due to various limitations.
Sample size - 380 consumers in Enugu metropolis who came to markets and shops to buy
products were sampled
Sample unit – Impact of advertisement on consumer buying behavior
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Sample technique- To identify the determinants of consumer buying behaviour, a multiple
regression model is used
Statistical Tools
Instrument Pilot Test, The reliability analysis, Multiple Regression Technique
Hypothesis
1. Emotional response does not positively affect consumer buying behaviour
2. Environmental response towards brand does not positively affect consumer buying
behaviour.
3. Brand awareness does not positively affect consumer buying behaviour
4. Sensory stimulated advertising does not positively affect consumer buying behaviour
Major Findings
The sampled respondents were 126 (39.4%) males and 194 (60.6%) females. This implies that
majority of the consumers were females.
Majority of the respondents were aged 36 – 40 years.
Positive relationship lies between the independent variable emotional response and the
dependent variable consumer buying behaviour.
66.9% of variation in consumer buying behaviour is accounted for by variation in explanatory
variables
Conclusion
It is concluded that he predictor variables, emotional response, environmental response towards
brands, brand awareness and sensory stimulated advertising have positive relationship with
consumer buying behaviour. All the variables have statistically significant t-ratio. The results
are consistent with the literature.
The Effect of Viral Marketing Messages on Consumer Behavior
Link:
https://www.indianjournals.com/ijor.aspx?target=ijor:jmr&volume=17&issue=2&article=004
&type=pdf
Objective of the Report
This paper examines the effect of entertaining, informative and credible viral marketing
messages on consumer’s message process involvement, attitude and purchase intention.
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Author
Jay Trivedi
Year of Publication
2017
Place of Publication
Mudra Institute of Communications, Ahmedabad
Research Methodology
Design: Descriptive research design was used to conduct the study.
Sample Unit: Gen Y i.e., individuals born after 1980. Post graduate students falling in the age
group of 21-25 years category.
Sample size: 332 affirmative responses out of 360.
Sample technique: Convenience sampling was used to conduct the study
Statistical Tools
Cronbach alpha, exploratory factor analysis, confirmatory factor analysis and structural
equation modelling were used to analyse the data
Hypothesis
H1 Entertaining viral marketing messages have a significant influence on message process
involvement (MPI)
H2 Informative viral marketing messages have a significant influence on MPI
H3 Credible viral marketing messages have a significant influence on MPI
H4 MPI has a significant influence on attitude towards brand (AB)
H5 AB has a significant influence on purchase intention (PI)
H6 Entertainment, credibility and informativeness of the viral marketing messages have a
direct significant influence on PI mediated by MPI and AB
Major Findings
Entertaining, informative, and credible viral marketing messages exhibit a significant influence
on message process involvement. This validates the hypothesis H1, H2, H3, H4 and H5.
Attitude towards the brand was found to have a significant influence on purchase intentions.
The viral marketing messages do not have a direct significant influence on purchase intentions.
The results lead to the rejection of hypothesis H6.
Conclusion
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The results establish that viral marketing messages do not have direct influence on purchase
intentions of consumers. Message process involvement and attitude towards the brand strongly
mediate the relationship between the viral messages and purchase intentions.
A study on the influences of advertisement on consumer behaviour
Objective of report
A study on the influences of advertisement on consumer behaviour.
Authors
Tashrifa Haider, Independent University Dhaka Shadman Shakib, Masters Independent
University Year of publication-
Research Article: 2017 Place of publication- Bangladesh, Dhaka
Research Methodology
Design-The research design is done by the data collection technique used in this study
comprised of playing out an up close and personal meeting with the respondents who are
consumers of any product or have been exposed to any sort of advertisement. The review
poll was planned and conveyed to target respondent arbitrarily.
Sample size
A closed survey comprising of 21 items were presented to the respondents and asked to give
their opinion.
The sampling method that was used in this research is ‘random sampling method’.
Students, professionals, and aged people were considered for the survey. The age limit was
minimum 18 years. The data was mainly collected among the people from different parts
of Dhaka city, which is the capital of Bangladesh. The data collection took place from
November 2017 to March 2017.
Sample Unit
The influence of advertisement and how advertisements work is a question that most
marketers and managers try to find an answer to.
Sample Technique
The sampling method that was used in this research is ‘random sampling method’.
Students, professionals, and aged people were considered for the survey. The age limit was
minimum 18 years. The data was mainly collected among the people from different parts of
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Dhaka city, which is the capital of Bangladesh. The data collection took place from
November 2017 to March 2017.
Statistical Tools
The statistical technique used in this survey was descriptive statistics, reliability analysis,
Pearson correlation and regression analysis.
Hypothesis
The influence of advertisement and how advertisements work is a question that most
marketers and managers try to find an answer to. The primary objective of advertisement is
usually to impact the consumers buying behaviour. Most of the time consumers buying
behaviour is influenced by liking or dis- liking of consumer towards the advertisement of
the product, advertised (Smith & Neijens, 2006).
To analyse more about the effects of advertisement and the factors of advertisement that
influences the consumer buying behaviour, a conceptual framework is built. The hypotheses
for this research are formulated based on the literature review to build a conceptual model
for the research.
In the words of Gorn (1982), the consumer behaviour towards a product is wholly depending
on advertising, without any consideration of the features of the product.
Major Findings
This study shows that there is positive impact of all the variables on consumer buying
behaviour. This means that advertisement does in fact affect the buying behaviour of
consumers. Among the four independent variables however, we can see that Familiarity
and Entertainment have the most significant impact. So, we can see that the psychological
impact that Familiarity has on consumers does in fact lead to positive buying behavior.
GAPS IDENTIFIED
This research was a study on the impact of advertisement on consumer buying behaviour.
For this purpose, four independent variables, Entertainment in Advertisement, Familiarity
of Advertisement, Social Imaging in Advertisement and Advertisement Spending were
considered. Based on the analysis it can be concluded that advertisement has significant
impact on consumer buying behaviour. This study can be helpful for marketers to
understand what triggers a consumer’s intention to purchase.
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RESEARCH METHODOLOGY
Research Design- The research was done quantitatively using descriptive research
design by circulating google forms containing questionnaire and collecting the data
from the given responses. Finally analyzing the obtained data.
Sample Design- A google form survey was conducted comprising of 20 questions
including few personal detail questions. The target sample was basically any consumer
who has peer knowledge and the purchasing power to buy products in 3 different
industries such as chocolates, water purifiers and grooming products.
The google form was circulated around 14 days and data from 126 different responses
were extracted and used for analyzing.
Hypothesis
Advertising a product always had a key role in making the product reach the customer
better. The evolution of advertising in a long run has been constantly changing over the
period. It initially began with mouth talk and then later publishing advertisements on
newspapers, then distributing pamphlets, advertising on radio, posters on walls and
huge hoardings in the city and then moved on to digital advertising with ads featuring
on television, and now in the current trend the advertisements entered the internet
through digital marketing with ads featuring on various gaming apps, social media apps
etc.
It is the natural tendency of the consumers to keep updating to the trends in most aspects
of life. Similarly, there is now the trend of advertising entering the digital marketing
and the companies are swiftly trying to enter digital advertising. But not all age groups
are so active on the internet especially when it comes to choosing products they
consume. So our research is held to try analyzing the consumer behavior of different
age groups as to which form of advertisements do they prefer while buying a product
respectively.
Data Analysis Tools Used
The tools and tests used for the analysis in the research were Google Form analytics,
MS Excel and IBM SPSS.
Scope of the research
The conclusions drawn from the study are based on the responses given by the
consumers in a different area (Metropolitan, Urban, Semiurban, rural). This study will
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help get insight into consumers' perception of Advertisements and their impacts on
changing consumers' buying behaviors. We will get an insight whether the
advertisement impacts people in buying products or other factors which make them
buy the products. We also gained insight into how the advertisement in their buying
behavior affects people from different areas. We gained insight of how brands that we
selected had impacted people in buying behavior through their advertising campaigns.
Limitations
To begin with, if we had access to a bigger number of people, the sample size could
have been increased. The population of consumers is not known. Second, it would have
been great if we could get into specific marketplaces to learn about consumer behavior
and collect the data, but due to covid restrictions, we couldn't get those data. The other
limitation was resources prohibited to take the large sample size, and the following
limitation was brands or sectors chosen for this research were limited. Next limitation
was the questions we chose for the questionnaire were limited. If we could use more
forms and questions, we would have gotten more data.
DATA ANALYSIS
Data analysis is critical in research because it simplifies and improves data processing. It
enables researchers to evaluate data in an easy manner, ensuring that nothing is overlooked that
could aid in the discovery of new information. Data analysis is a technique for studying and
analysing large amounts of information. Research frequently entails sifting through mountains
of data, which is becoming increasingly difficult for academics to manage with each passing
minute.
As a result, data analysis skills give researchers a major advantage in today's world, allowing
them to be more effective and productive.
We had prepared a research survey to accumulate information on the power of advertising on
consumer behaviour. Our survey consisted of 68.3% males and 31.7% females.
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Out of the survey responses for males, 34.8% were between the ages of 25-30, 1% were above
the age of 31 and 64.2% were between the ages of 18-24. In the case of females, 2.5% were
between the ages of 25-30 and 97.5% were between the ages of 18-24.
From the people we surveyed, 41.3% of them belonged to Metropolitan cities, 37.3% of them
belonged to urban areas, 13.5% of them belonged to semi-urban areas and 7.9% of them
belonged to rural regions.
37.5% of the females were from Metropolitan cities, 5% were from semi-urban areas and
57.5% were from urban areas. 43% of males were from Metropolitan cities, 11.6% were from
rural areas, 12.8% were from Semi-urban areas and 32.6% were from urban areas.
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From the research study we found that 42.8% of people are likely to look into a product by
coming across an advertisement on websites. The survey revealed that people were also
sceptical on looking for a product via promotion on google. Out of all the marketing platforms,
social media turned out to be the biggest influencer in people’s minds that drove them to a
product purchase with more than 50% of people saying they are highly likely to buy a product
by viewing ads on social media.
Television being an all-time favourite platform for marketers, it still manages to pull audience
to buying products by viewing ads played on TV. However, it can be seen that physical
advertisements such as Billboards, newspaper etc. have become an outdated mode of
promotion as there is a clear majority of people who are highly unlikely to look into a product
through an ad placed in physical media.
Where (1- Highly unlikely and 5- Highly likely)
Overall, 51.6% of people found ads which are relatable to own experience as the main
persuading factor in peaking their interest towards a product. Coupled with humour (33.3%),
an advertisement about life experiences would influence the consumer buying behaviour the
most.
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Through our thorough research we also analysed that irrespective of the gender, the element of
the advertisement that appealed the most was if it was relatable with life experience. As shown
in the graph, more than half of the males and females voted relatability to life experience as the
main aspect of an advertisement which would encourage them to purchase the product.
Purchasing of a product cannot be done only by viewing ads as a consumer has more criteria
to investigate. This is echoed
in the research we conducted
as people were not completely
convinced nor completely
averse to buying behaviour by
viewing advertisements.
Where (1- Highly unlikely and 5- Highly likely)
Our research also proved that majority of consumer needs are generated upon viewing an
advertisement as majority of people voted 4 and 5 on a scale of 1-5 characterising the likelihood
of need generation based on ads.
Where (1- Highly unlikely and 5- Highly likely)
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Based on our research we can conclude that consumer behaviour isn’t swayed much through
endorsement by a celebrity. Among the people we surveyed, 57.2% of people were not
drawn towards a purchase just because a known celebrity is the face of the brand.
Where (1- Highly unlikely and 5- Highly likely)
Even in the era of digital transformation and the field of advertisement being the best way to
market a product, people still rely heavily on word of mouth for many purchases. This
hypothesis is supported by our survey data wherein 66.7% of people were willing to purchase
a product which hasn’t been advertised on any platform.
Where (1- Highly unlikely and 5- Highly likely)
Controversies are a part of parcel of today’s digital world. Our research formulated a query
which provided data according to a situation where posting a controversial advertisement
would affect the buying behaviour of customers. We provided 3 parameters to measure the
response, namely, YES, NO and MAYBE. 38.9% of the people said MAYBE and 32.5% of
the people said NO. This proves that customer loyalty is beyond controversial advertisements
and is more inclined to the quality of the product and the services it offers.
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Consumer buying behaviour is a vast domain to be explored and is unique to different types of
products. It varies with the type of product, quality of the product, loyalty to the brand and
most often than not, word of mouth. To provide more stability to our research we surveyed
people on products of specific sectors namely, Chocolates, Water purifiers, Grooming and
Cosmetics.
Chocolates
The most preferred brand of chocolate among people was Cadbury, with over 66.7% of surveys
in favour. This majority echoed through the advertisement campaigns liked the most by people,
with Cadbury being the favourite by being chosen by 80.2% of them.
Upon researching what element of the advertisement appealed the most to people, 58.7% of
them chose storyline and 31% chose music. The reason why people chose Cadbury chocolates
over the other is because of the relatable advertisement campaigns put forth by the brand. The
chocolates were turned from being candy to a sweet that could be given as a sweet during
festivals and special occasions. This unique advertising strategy is what drove customers to
buy Cadbury chocolates. This brings back the fact that consumers buying behaviour for
chocolates is influenced by the advertisement that relates to their lives with a good story line
and background music in line with the plot.
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Water Purifier
Water purifier being a quality-based product had different consumer buying behaviour patterns
as compared to chocolates. 48.4% of the people surveyed preferred Kent water purifiers, 23%
preferred Pure-it and 16.7% preferred Eureka Forbes.
But when asked which company’s advertisement they had seen more frequently, 69% of them
said Kent.
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Even though the advertisement rings the most on digital platforms the reason for purchasing
the product wasn’t the advertising strategy or the story line. The main reasons given by people
to purchase the water purifiers was word of mouth which were reviews given by previous
consumers of the same product and in-person demos which would demonstrate the working
and quality of the product. Word of mouth was preferred by 47.6% of people and in-person
demos were preferred by 32.5%. Advertisements however influenced 16.7% of the people in
purchasing.
So, in the case of water purifiers we can say that advertisements don’t have much of an effect
on consumer buying behaviour.
Cosmetics
We found that 24.4% respondents use L’oreal, 20.6% Lakme, 12.7% Maybelline and 11.1%
Nykaa.
We also find that; dominance of these brands also relates with aggressive advertising. All four,
L’oreal, Nykaa, Maybelline, Lakme have advertising a major driver of sales.
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We also observed that, ‘word of mouth’ has much more weightage in decision making than
advertising. Demo in stores is second most important factor. Here we conclude that, advertising
is less important factor in cosmetics purchase in contrary to the popular belief.
Grooming
Conducting research on grooming products we found that 56.3% of people used Gillette, 19%
used Godrej and 13.5% used old spice.
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The sound reason for majority of the people opting for Gillette is supported by how frequently
they have seen the ad of the brand with 71.4% of people stating that Gillette’s ads are most
frequently viewed.
The final purchase decision was however still bridging on word of mouth since it’s a product
gauged on usage quality and results, but a considerable chunk of people did agree that their
purchasing behaviour was
aligned to the advertising
campaigns initiated by the
brands. 50.8% of the
people were influenced to
buy the product through
word of mouth and 34.9% of people were inclined to purchase due to advertisements. So, we
can say that Grooming products are purchased by consumers largely based on word of mouth,
but the advertisements have more than a sizeable role to play in influencing the buying
behaviour.
SUMMARY AND CONCLUSION
In this modern era of technology and information, consumers have got a lot of privilege in
choosing which product they want. There is a vast abundance of commercials and
advertisements that are thrown at their disposal to choose from. Our research analyses those
advertisements which are more generic and containing life experiences are more cherished by
consumers. It encouraged them more to purchase a product. This brings marketing managers
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in the picture who need to design a new way of appealing to customers that can break through
the chaos and impact customer’s decision.
In this research we also found that people not only are influenced through ads but heavily
depend on the words of their friends and belongings. This highlights the importance of creating
a product that is great while at the same time impacting customers through the advertisements.
When a medium is selected by any company for showcasing advertising, it should be carefully
chosen to ensure the achievement of the advertiser’s goals.
We also found out that customers also investigate the market history of product sometimes
apart from their commercials. This basically gives them a notion that a product which has been
in the market for long has a greater effect on consumers buying behavior today’s world where
brand managers allocate huge sums of money on advertisements need to also look upon the
realistic needs of consumers while at the same time achieving their brand goals.
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