CHAPTER- 1

PROLOGUE

1
 1.1 INTRODUCTION

Advertisements is a form of communication that typically attempts to persuade potential

customers to purchase or to consume more of a particular brand of product or service

one element in corporate strategies to create, organize and where possible control

markets, especially for mass produced consumer goods. One element in corporate

strategies to create, organize and where possible control markets, especially for mass

produced consumer goods. Many advertisements are designed to generate increased

consumption of those products and services through the creation and reinvention of the

"brand image”. Every major medium is used to deliver these messages, including

television, radio, cinema, magazines, newspapers, video games, the Internet, carrier bags

and billboards.

Advertisements played a vital role in buying decision. Through advertisement,

Consumers are come to know about the product, its uses, benefits, availability, and

brand name of products. At the time of buying a product, they recall the advertisement

and then they take their buying decision in many cases.

1.2 CONCEPTUAL FRAMEWORK

2
Consumer behavior is a complex issue and significant in marketing. In general it is
associated with psychological status of the consumer in taking or rejecting buying decision.
The most important part of consumer behavior is the action that taken by the buyer to accept
or reject of an offered product or product available in the market.

Buying decision is a critical stage fro m the point of view of both the customer and marketer
specifically in case of durable product. while taking a buying decision by a consumer he/she
consider many aspects related to a product ,price, warranty etc.refrigerator is a common
durable essential house product required by each and every family. It is impossible to think
about any family without a refrigerator specifically in the urban counterpart. In selecting
house hold products the house maker invariably influences on the buying decision and
buying behavior of the head of the family is also affected in many cases.

Of course advertisements always work in influencing the customer in taking their buying
decision. It is very difficult to measure properly the impact of advertisement in taking
buying decision by consumer bit some indication may be find out to know the implication of
advertisement through some questions.

In our study area advertisement and buying decision of house maker in relating to
refrigerator has also been giving us an opportunity to consider the term consumer behavior
and decision making process in general.

Consumer behavior is the study of when, why, how, and where people do or do not buy

a product. It blends elements from psychology, sociology, social anthropology and

economics. It attempts to understand the buyer decision making process, both individually

and in groups. It studies characteristics of individual consumers such as demographics and

behavioural variables in an attempt to understand people's wants. It also tries to assess

influences on the consumer from groups such as family, friends, reference groups, and

society in general.

3
Customer behaviour study is based on consumer buying behaviour, with the customer

playing the three distinct roles of user, payer and buyer. Relationship marketing is an

influential asset for customer behaviour analysis as it has a keen interest in the re-discovery

of the true meaning of marketing through the re-affirmation of the importance of the

customer or buyer. A greater importance is also placed on consumer retention, customer

relationship management, personalization, customization and one-to-one marketing. Social

functions can be categorized into social choice and welfare functions.

Research suggests that customers go through a five-stage decision-making process in any

purchase. This is summarized in the diagram below:

4
5
*Adopted from

This model is important for anyone making marketing decisions. It forces the marketer to

consider the whole buying process rather than just the purchase decision (when it may be

too late for a business to influence the choice!)

The model implies that customers pass through all stages in every purchase. However, in

more routine purchases, customers often skip or reverse some of the stages.

For example, a student buying a favourite hamburger would recognize the need (hunger)

and go right to the purchase decision, skipping information search and evaluation. However,

the model is very useful when it comes to understanding any purchase that requires some

thought and deliberation.

The buying process starts with need recognition. At this stage, the buyer recognizes a

problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a

marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and

chocolate muffins).

An “aroused” customer then needs to decide how much information (if any) is required. If

the need is strong and there is a product or service that meets the need close to hand, then a

purchase decision is likely to be made there and then. If not, then the process of information

search begins.

A customer can obtain information from several sources:

6
• Personal sources: family, friends, neighbors etc

• Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale

displays

• Public sources: newspapers, radio, television, consumer organizations; specialist

magazines

• Experiential sources: handling, examining, using the product

The usefulness and influence of these sources of information will vary by product and by

customer. Research suggests that customer’s value and respect personal sources more than

commercial sources (the influence of “word of mouth”). The challenge for the marketing

team is to identify which information sources are most influential in their target markets.

In the evaluation stage, the customer must choose between the alternative brands, products

and services.

How does the customer use the information obtained?

An important determinant of the extent of evaluation is whether the customer feels

“involved” in the product. By involvement, we mean the degree of perceived relevance and

personal importance that accompanies the choice.

Where a purchase is “highly involving”, the customer is likely to carry out extensive

evaluation.

High-involvement purchases include those involving high expenditure or personal risk –

for example buying a house, a car or making investments.

7
Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in

the supermarket) have very simple evaluation processes.

Why should a marketer need to understand the customer evaluation process?

The answer lies in the kind of information that the marketing team needs to provide

customers in different buying situations.

In high-involvement decisions, the marketer needs to provide a good deal of information

about the positive consequences of buying. The sales force may need to stress the important

attributes of the product, the advantages compared with the competition; and maybe even

encourage “trial” or “sampling” of the product in the hope of securing the sale.

Post-purchase evaluation - Cognitive Dissonance

The final stage is the post-purchase evaluation of the decision. It is common for customers

to experience concerns after making a purchase decision. This arises from a concept that is

known as “cognitive dissonance”. The customer, having bought a product, may feel that an

alternative would have been preferable. In these circumstances that customer will not

repurchase immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to persuade the

potential customer that the product will satisfy his or her needs. Then after having made a

purchase, the customer should be encouraged that he or she has made the right decision.

8
CHAPTER- 2

ABOUT THE

STUDY
9
2.1 OBJECTIVES OF THE STUDY
 To understand the impact of advertisement in taking buying decision by consumers
of the study area.

 To study the comparative advantages of advertisements for the respondents, with

reference to refrigerator.

 To study the consumer perception about the advertisement of different brands of

refrigerator.

2.2 RESEARCH QUESTIONS

Advertisement has the ability to convert one’s decision in buying a particular

product. How much it can influence to the homemaker in taking their buying

decision relating to the refrigerator or has advertisement any impact on the study

area is pertinent to consider here.

2.3 SCOPE OF THE STUDY

The scopes of this particular study are:-

1. The study highlights the impact of advertisement in making purchase decision.

2. The study is conducted amongst the home maker in relating to Refrigerator in

Dibrugarh Town.

10
 3. The study focuses the comparative advantages of advertisements among the home

makers.

4. The study highlights consumer perception towards the advertisement of different

brands of refrigerator.

5. The study focuses to know the significance of advertisements in today’s life.

2.4 RESEARCH METHODOLOGY

This study has been carried out to know the impact of advertisement in taking buying

decision by consumer amongst the home maker in relating to refrigerator in Dibrugarh

Town.

Sampling:
1. Method: - The type of research is explorative. The respondents are selected by
adopting a method of random sampling.
2. Size: - The sample size is 100 respondents.
3. Area: - The questionnaires have been distributed among consumers in various area of
Dibrugarh town.

Data collection:
Collection of data is done through primary as well as secondary sources.

Primary Data is collected through the structured questionnaires and interviews and
Secondary Data are collected through internet and other published information.

Period of study:
The study is conducted over a period of two months. (January and February)

Analysis Techniques:
Analyses have been made on the basis of the responses of the respondents and the
results of the interviews.
11
 To arrive at the objectives statistical tools is used for analyzing the data and information
that are percentage, average, Charts, tables, bar diagram, etc.

2.5 LIMITATIONS OF THE STUDY

1. It was difficult to collect proper data and information because the Home makers

were not giving maximum time to respond.

2. The time period is too small to carry out such a topic and to draw a meaningful

conclusion.

3. The study is for limited period of two months and market scenario may change after

time so there may be difference in market scenario in future.

4. The information collected and analyzed are limited which may not fully represents

the image of the study.

12
CHAPTER – 3

ANALYSES OF

DATA

13
 ANALYSES OF DATA
As the study is of empirical in nature, the data has been collected from the respondents
through structured questionnaires and interviews and these were tabulated and accordingly
the analyses were done:

1. How many respondents have Refrigerator

OPTIONS IN %
YES 70
NO 30

Source:Field survey

(Fig.1)

From the above figure,it has been observed that 70% of respondents have refrigerator and
30% of respondents donot have refrigerator.

2. Indication of Brand Name

14
 OPTIONS IN %
Whirlpool 35
LG 32
Videocon 20
Samsung 23
Other 10

Source:Field survey

( Fig.2)

Above figure shows the indication of brand name given by respondents that 35% have
whirlpool refrigerator, 32% have LG, 20% have Videocon, 23% have Samsung and 10% of
respondents have other refrigerator brand.

3. Media Of Advertisement

15
 OPTIONS IN %
Billboards 10
TV advertisement 70
Newspaper 15
Others 5

Source:Field survey

( Fig.3)

From the above graph, it has been observed that advertisement is more influenced by TV i.e.
70%, newspaper is 15%, billboards is 10% and other media of advertisement is 5%.

4. Frequently watching of advertisement of refrigerator in a day

OPTIONS IN %
16
 Once 15
Twice 22

Thrice 28
Many Times 35

From the above graph, it has been observed that 15% of respondents watch advertisement
once in a day, 22% respondents watch twice in day, 28% respondents watch thrice times in a
day and 35% of respondents watch advertisement many times in a day.

5. Satisfaction with the service of Refrigerator purchased

OPTIONS IN %
YES 85

17
 NO 15

Source:Field survey

( Fig.5)

From the above chart , it is found that 85% of respondents are satisfied with the service of
refrigerator purchased by them whereas, 15% are not satisfied with the service of
refrigerator purchased.

6. Deviation in between the facilities being advertised and in using the product

OPTIONS IN %
YES 10
NO 90
18
 Source:Field survey

( Fig.6)

From the above figure, it has been observed that 90% of respondents said No about
the facilities being advertised and in using the product and 10 % of respondents said
Yes.

7. Which company’s advertisement is more attractive

OPTIONS IN %
LG 32
Whirlpool 25
Videocon 18

19
 Samsung 20
Others 05
Source:Field survey

( Fig.7)

From the above graph, it is found that 32% of respondents said LG’s advertisement is more
attractive , 25% said Whirpool, 18% said Videocon, 20% said samsung and 5% said others
advertisement is more attractive.

8. Which company’s advertisement seen in recent days

OPTIONS IN %
LG 25
Whirlpool 30
Videocon 15

20
 Samsung 20
Others 10
Source:Field survey

( Fig.8)

Above figure shows that, which company’s advertisement seen in recent days, 25% of
respondents said LG, 30% said Whirlpool, 15% said Videocon, 20% said Samsung and 10%
said about other company’s advertisement.

9. Which company’s advertisement is most memorable

OPTIONS IN %
LG 28
Whirlpool 40
Videocon 12
Samsung 15
Others 5
Source:Field survey

21
 ( Fig.9)

From the above graph, it has been observed that 40% of respondents said
Whirlpool’s advertisement is most memorable whereas, LG’s is 28%, Videocon’s is
12%, Samsung’s is 15% and other company’s advertisement is only 5%.

10. Which company’s advertisement respondents can rely upon and take purchase
decision

OPTIONS IN %
LG 28
Whirlpool 40
Videocon 12
Samsung 15
Others 5
Source:Field survey

22
 ( Fig.10)

From the above figure, it is found that 40% respondents can rely upon the
Whirlpool’s advertisement,28% can rely upon LG, 12% can rely upon Videocon,
15% can rely upon Samsung and 5% can rely upon other refrigerator’s
advertisement.

11. Reasons for selecting a brand

OPTIONS IN %
Service 20
Availability of parts 20
Design 30
All the above 30
Source:Field survey

23
 ( Fig.11)

Above graph shows the reasons for selecting a brand, 20% of respondents select brand for
service, 20% respondents for availability of parts, 30% respondents for design and 30%
respondents are for all the above.

12. Advertisement is helpful to become familiar with the brand

OPTIONS IN %

YES 90

NO 10
Source:Field survey

24
 ( Fig.12)

From the above figure , it has been observed that 90% of respondents said the
advertisement is helpful to become familiar with the brand whereas, 10% of
respondents said No.

13. Advertisement is substantially help in increasing the number of

customers

OPTIONS IN %

YES 80

NO 15

No Idea 5
Source:Field survey

25
 ( Fig.13)

From the above figure, it is found that 80% of respondents said advertisement is
substantially help in increasing the number the customers, 15% said No and 5% said No
idea.

14. Which company’s service and advertisement is differ

OPTIONS IN %
LG 15
Whirlpool 10

Videocon 30

Samsung 20

Others 25
Source:Field survey
26
 ( Fig.14)

From the above figure, it has been observed that 15% of respondents said about LG,
10% said about Whirlpool, 30% said about Videocon, 21% said about Samsung and
25% of respondents said about Other brands.

15. Purchase decision relying on which company’s advertisement

OPTIONS IN %

LG 28

Whirlpool 25

Videocon 22

Samsung 20

Others 5
Source:Field survey

27
 ( Fig.15)

Above graph shows the purchase decision of respondents relying on different company’s
advertisement, 28% of respondents rely on LG’s advertisement, 25% of advertisement rely
on whirlpool, 22% of respondents rely on Videocon, 20% rely on Samsung and 5% of
respondents rely on Other brand’s advertisement.

CHAPTER- 4

28
INTERPRETATION
OF DATA

INTERPRETATION OF DATA

1. From the survey, it has been observed that 70% of respondents have refrigerator and
30% of respondents donot have refrigerator.

2. The study shows the indication of brand name given by respondents that 35% have
whirlpool refrigerator, 32% have LG, 20% have Videocon, 23% have Samsung and
10% of respondents have other refrigerator brand.

3. From the study, it has been observed that TV advertisement is more influencial on
respondence i.e. 70%, newspaper is 15%, billboards is 10% and other media of
advertisement is 5%.

29
4. From the survey, it has been observed that 15% of respondents watch advertisement
once in a day, 22% respondents watch twice in day, 28% respondents watch thrice
times in a day and 35% of respondents watch advertisement many times in a day.

5. From the survey , it has been found that 85% of respondents are satisfied with the
service of refrigerator purchased by them whereas, 15% are not satisfied with the
service of refrigerator purchased.

6. From the study, it has been observed that 90% of respondents said No about the
facilities being advertised and in using the product and 10 % of respondents said
Yes.

7. From the survey, it has been found that 32% of respondents said LG’s advertisement
is more attractive , 25% said Whirpool, 18% said Videocon, 20% said samsung and
5% said others advertisement is more attractive.

8. The study shows that, which company’s advertisement seen in recent days, 25% of
respondents said LG, 30% said Whirlpool, 15% said Videocon, 20% said Samsung
and 10% said about other company’s advertisement.

9. From the survey, it has been observed that 40% of respondents said Whirlpool’s
advertisement is most memorable whereas, LG’s is 28%, Videocon’s is 12%,
Samsung’s is 15% and other company’s advertisement is only 5%.

10. From the study, it has been found that 40% respondents can rely upon the
Whirlpool’s advertisement,28% can rely upon LG, 12% can rely upon Videocon,
15% can rely upon Samsung and 5% can rely upon other refrigerator’s
advertisement.

11. The study shows the reasons for selecting a brand, 20% of respondents select brand
for service, 20% respondents for availability of parts, 30% respondents for design
and 30% respondents are for all the above.

30
12. From the survey, it has been observed that 90% of respondents said the
advertisement is helpful to become familiar with the brand whereas, 10% of
respondents said No.

13. From the survey, it has been found that 80% of respondents said advertisement is
substantially help in increasing the number the customers, 15% said No and 5% said
No idea.

14. From the study, it has been observed that 15% of respondents said about LG, 10%
said about Whirlpool, 30% said about Videocon, 21% said about Samsung and 25%
of respondents said about Other brands.

15. The study shows the purchase decision of respondents relying on different
company’s advertisement, 28% of respondents rely on LG’s advertisement, 25% of
advertisement rely on whirlpool, 22% of respondents rely on Videocon, 20% rely on
Samsung and 5% of respondents rely on Other brand’s advertisement.

31
 CHAPTER- 5
EPILOGUE

5.1 OVERVIEW OF THE PROJECT

The study is carried out to identified the impact of advertisements in taking buying decision
by consumer. Buying of product is not an easy task, the consumer should have proper
knowledge and idea about the product. In taking buying decision advertisement can
32
influence the buyer at different level with different results. More over advertisement can
highlight the facility,benifit, quality of a brand infront of the prospects which ultimately
help them to be a customer.

The present study is an attempt to understand the impact of advertisement on the home
maker and run with five chapter.The chAPTER ONE deals with………….

From the study we get some indigation on the impact of advertisent on the respondence of
the study area and they can be listed on the following findings.

5.2 FINDINGS

1. From the study, it has been observed that 70% of respondents have refrigerator and
30% of respondents donot have refrigerator.
33
2. From the study, it has been found that most of the respondents are using Whirlpool
and LG refrigerator brand in comparision of other brands like Samsung and
Videocon.

3. In this study, it is indicated that advertisement is more influenced by TV

advertisements than other media of advertisements.

4. From the study, it is found that most of the respondents are satisfied with the service
of refrigerator purchased .

5. From the study, it has been observed that most of the respondents are satisfied with
the facilities being advertised and in using the product.

6. From the study, it is found that LG’s and Whirlpool’s advertisement is more
attractive than the other brand.

7. From the study, it has been observed that more advertisements of LG and Whirlpool
have seen in recent days.

8. From the study, it has been observed that Whirlpool’s and LG’s advertisement is
most memorable than other brand.

9. From the study, it is found that most of the respondents can rely upon the
Whirlpool’s and LG’s advertisement.

10. From the study, it has been observed that some of the respondents select brand
according to the design, some respondents select for service, some respondents
select for availability of parts and some respondents select for all these features .

34
11. From the study, it has been observed that advertisement is helpful to become familiar
with the brand and also advertisement is substantially help in increasing the number
of customers.

12. From the study, it has been observed that Videocon’s and Other brands service and
advertisement is differ in comparision of LG, Whirlpool and Samsung.

13. From the study, it has been found that purchase decision of respondents relying on
different company’s advertisement like some respondents rely on LG’s
advertisement, some respondents rely on whirlpool, some respondents rely on
Videocon, some respondents rely on Samsung and some respondents rely on Other
brand’s advertisement.

35
 5.3 CONCLUSION

The results of this research study clearly indicate that there is an impact of advertisement in
taking buying decision by consumer of Dibrugarh town regarding the refrigerator.
Consumer’s buying decision depends upon the brand name, attractive overview of
advertisements, facilities and uses of the refrigerator. The consumers select their brand
according to the facilities, availability of parts, design and for good services. An
advertisement can definitely helps to take the buying decision regarding any product
because from advertisement they learn about the utility, its features and brand image.

Advertisements are closely linked to the consumer behavior. So it affects the personality to
the consumers, his concept of self, his attitudes beliefs and opinions, his life-cycle and life-
style etc. An advertisement makes it possible for the manufacturer to introduce new ideas
and new products. Had it not been for the advertising the consumers would not have
accepted many products. Advertising expands markets, builds up volumes, and gives a
market share and profitability and it is more influenced by TV.

So, the consumers easily take buying decision by relying upon their choosing brand and the
advertisements helps them to become more familiar with the brands of refrigerators. The
consumers of Dibrugarh town prefer the Whirlpool and LG brand’s refrigerator in large
volume.

From the study, it is concluded that there is an impact of advertisements in taking buying
decision by consumer amongst the home maker in relating to Refrigerator in Dibrugarh
town.

36
ANNEXURE

37
Questions asked to the consumers of Dibrugarh town

Dear Sir,

I am a student of MBA (Marketing), 09-11 batch of NIS Academy in technical

collaboration with Annamalai University. I get a topic to study about an impact of
advertisements in taking buying decision by consumer of Dibrugarh town.

On the basis of my topic. I prepared a few question for getting the information. So, please
provide the correct information as per your experience & Convenience.

Thanking You

Alok kr. Roy

MBA 2nd Year

NIS Academy, Dibrugarh

38
 QUESTIONNAIRE

Name: ___________________________

Age: ____________________

Sex: Male Female

Income Status:
Below Rs. 3000
Rs. 3000 to Rs 5000
Rs. 5000 to Rs. 10000
Rs. 10000 to Rs. 20000
Above Rs. 20000

1. Do you have refrigerator?

Yes No

a) If yes, please indicate the brand from the given below:

i) Whirlpool ii) LG iii) Videocon iv) Samsung
v) Others

2. Do you believe advertisement can influence buyer in buying decision?

Yes No

3. Which media of advertisement have influenced you to purchase this product?

a) Billboards b) TV advertisement c) Newspaper d) Others

4. How many times in a day have you seen the advertisement of refrigerator?
a) Once b) Twice c) Thrice d) Many times
5. Are you satisfied with the service of refrigerator you purchased?
Yes No
6. Do you experience with any deviation in between the facilities being advertised
and in using?
Yes No
7. Which company’s advertisement is more attractive to you?
a) LG b) Whirlpool c) Videocon d) Samsung e) Others
8. Which company’s refrigerator advertisement you have seen in recent days?
a) LG b) Whirlpool c) Videocon d) Samsung
e) Others
39
9. Which company’s advertisement is most memorable?
a) LG b) Whirlpool c) Videocon d) Samsung
e) Others

10. On which company’s advertisement you can rely upon and take purchase
decision?
a) LG b) Whirlpool c) Videocon d) Samsung e) Others

11. What reasons influence you in selecting a brand?

a) Service b) Availability of parts c) Design d) All the above

12. Do you think that advertisement is helpful in making you familiar with a brand
of Refrigerator?
Yes No

13. Do you believe that advertisement can substantially help in increasing number
of Customers?
Yes No No idea

14. Which company’s service and advertisement differ?

a) LG b) Whirlpool c) Videocon d) Samsung
e) Others

15. You can take purchase decision relying on which company’s advertisement?
a) LG b) Whirlpool c) Videocon d) Samsung
e) Others

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