IMPACT OF MARKETING ON CONSUMER BY FOOD CHAIN IDUSTRIES (SUBWAY)

AL-FALAH UNIVERSITY

BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED BY: AHMED ANSARI

SUBMITTED TO: MR. WASIQ (CORDINATOR OF BBA 6 SEMESTER)

THE BUSINESS PROJECT REPORT IS SUBMITTED PARTIALLY TO FULFILMENT THE

REQUIREMENT OF THE BACHELOR DEGREE OF BUSINESS ADMINISTRATION AT
AL-FALAH UNIVERSITY BY THE DEPARTMENT OF MANAGEMENT UNDER
ASSISTANCE OF MR. WASIQ AND MR.IRFANULLAH KHAN .
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(APRIL 15 2019)
 DECLARATION

THE BUSINES REPORT IS MY ORIGINAL WORK AND HAS NOT BEEN SUBMITTED
FOR ANY EXAMINATION BY ANY OTHER UNIVERSITY OR ANY INDIVIDUAL

THIS BUSINESS PROJECT HAS BEEN SUBMITTED FOR EXAMINATION WITH MY

APPROVAL TO CORDINATOR OF MY DEPARTMENT OF MANGEMENT.

SIGNED____________ DATE__________
MR.WASIQ (ASSISTANT PROFESSOR)
DEPARTMENT OF MANAGEMRNT
AL-FALAH UNIVERSITY
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 DEDICATION

This is dedicated to all my supporting lectures who always supported me with their
effective and comprehensive teaching style and always motivates me to step ahead
without looking back and also my Boss who supported me financially and in my
crucial conditions. This is also dedicated to my family member who always blessed
me with success and help me to built myself strong psychologically and physically.
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 ACKNOWLEDGEMENT

The completion of this business project would have been impossible without the
material and moral support from various people. It is my obligation therefore to
extend my gratitude to them. First of all I thank the ALLAH for giving me good
health, and guiding me through the entire course.

I am greatly indebted to Mr. Dinesh Verma who was my supervisor for his effective
supervision, dedication, availability and priofessional advice. I extend my gratitude
to my lecturers who taught me in the graduation course in the BBA programme,
therefore enriching my respondents, deserve my appreciation for their support and
willingness for providing the required information during my study . My
appreciation finally goes to my classmate, with whom I weathered through the
storms, giving each other encouragement and for their positive criticism.
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ABSTRACT
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 Marketer are expected shift and spend millions dollars on Marketing with television
and internet as studies proved that customer spend more time on internet then on
television and they both are vital platform to divert the attention of potential
customers toward fast food industries that include SUBWAY, McDonalds, Burger
king etc they all are leading fast food industries in India . With rapid growth of
technology, the internet and television is becoming an important one stop point
for consumer for finding most of their needs. Be it communication, entertainment,
shopping, information search, internet and TV serves as panacea for all their
requirements. Many consumers are online for their personal work, but they do
notice the ads, banners displayed on the web page and also consumer experience
with latest products and offers on TV as well after internet. The current study
investigated the impact of Marketing on consumer through internet and TV by
conducting a case study by management of SUBWAY as it is one of the leading fast
food chain industries all around the world with more than 4200 stores located in
112 countries. It is largest single brand restaurant chain in the world. SUBWAY
mainly focus on internet and television advertisement as SUBWAY focused on
capturing large share in the market over its competitor like McDnolds and Burger
king by investing around US$516,000,000 IN 2011 just to beat them. Subway also
come up with creative and innovative sandwiches to deal with health-oriented
eaters and taste-oriented customers and every year they come up to celebrate
World sandwich day ” Where buy one and get one free” and advertise with slogans
“EAT FRESH”
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CHAPTER 1
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 Introduction

1.1 Background of the study

Internet and television marketing has grown tremendously in both its application
and number of user due to its unique characteristics flexibility, interactivity, and
personalization. Subway is the third largest fast food chain industries in the world
after its competitor KFC and McDonalds. The first subway was founded in 1965.
The founder of the subway chain Fred D Luca, started running his restaurant
business when he was just 17 year old. The first subway restaurant was opened
nine year after its foundation in Connecticut where the headquarter is now
situated.

Now there is more than 30,000 Subway restaurant in 88 countries worldwide

and it is the world’s fastest growing franchise chain. Now Subway are opening
all the time. The franchise chain has employed more than 150,000 people
(Subway 2009)

Subway offers customers many different kinds of fresh submarine sandwiches

called “Subs”. Customers always decide how they want their sandwiches to be
served. Subway’s advertising is based on FRESHNESS. Slogans “EAT FRESH” tells
that Subway uses only freshly baked bread and fresh ingredients. Subway has lot
of competitors for Example McDonalds, Burger king, Sunset Boulevard.

Subway have open almost 600 outlets in India in last 5 years and targeted to open
2000 outlets till 2020 because of their Marketing strategy as subway uses mix of
demographic and geographical segmentation to make its products more
appealing to the targeted group of customer. Recently they have launched a new
marketing campaign “MAKE IT WHAT YOU WANT”
Under the guidance and assistance I will going to elaborate about subways
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marketing methods and techniques to understand HOW THEY CONVINCE AND

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PERSUADE POTENTIAL CUSTOMERS? For this objective we need to understand

 subways techniques and strategies and creative and innovative taste as per
customer taste and preference as per demographical and cultural values. Subway
in India are operated by wholly owned franchise named by SUBWAY INDIA
located in mostly in smart cities like Delhi, Mumbai, Bangalore, Chennai etc as
they target the youth and health-oriented customers by satisfying them by
personalization.

THE CONCEPT OF MARKETING

Marketing is the study and management of exchange relationship. Marketing is the
business process of creating relationship with satisfying customers need and want.
With its focus on customer, marketing is one of the premier components of
business management. Marketing centrally focus on customers Need, Want &
Demand.
Marketing is traditionally based on PRODUCT MIX which refers to broad level of
marketing decision namely: product, price, promotion, and place. But here we will
elaborate the concept of promotion as it is the crust of our research business
project.

1.1.1 PROMOTION
Promotion is the component of a company’s marketing system that involves
delivery of messages to target customers that emphasizes the benefits of your
brand, product and services. A few common communication tools such as
advertising are used in promotional plans. Goals of promotion include building
brand awareness, creating favorable brand attitude, gaining market share, inducing
buying, building loyalty and growing sales (Kurtz 2010).

To reach its promotional goals, a company develops an effective promotional mix

which is a combination of strategies including advertising, personal selling, sales
promotion, direct marketing and public relation through a cost effective allocation
resources. In large companies brand like Subway, the marketing department has
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many roles. It determine the promotional mix, establish the budget, allocate
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resources, and measuring the results.

 Manufacturer often develop a promotional mix for each segment of the
distribution channel. To promote to large retailer that sells its products, a
manufacturer might want to use a mix of personal selling, advertising and buying
discounts. This is known as push policy. The advertiser is the communication
relayed from companies to persuade an audience to purchase their products. This
communication is usually through various form of paid media- TV and radio
commercials, print ads, billboard and most recently, product placement, social
media and online ads. Ads are placed where advertiser believe they will reach the
largest and most relevant customers.

Present marketing strategy of Subway

 Subway provides fresh food according to customer’s requirement and
preferences
 The restaurant chain provider easy cost effective franchise model
 Subway has hosted many social media events and programs
 Subway has effectively to increase their sales

1.1.2 INTERNET MARKETING

Internet advertising is a form of promotion that uses internet and world wide web
for the expressed purpose of delivering marketing messages to attract customers.
Examples of internet advertising includes digital marketing which involves
contextual ads on search engines, banner ads, Rich media ads, social networking
advertising, online classified advertising, advertising network and e-mail marketing
which includes e-mail spam, online videos directories for brand are good example
of interactive advertising. Consumer can gather information about the product and
services and interact or share with others for required product and services and
sometime complete transaction.
As the internet is a self selected environment of the consumer, the promotion
messages will be more effective. Internet advertising is also capable of providing
an experiential environment to the consumer through virtual reality interface that
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allow the consumer to experience some of the features and information to make
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decision about purchase.

 1.1.3 DIGITAL MARKETING
Digital marketing is the marketing of products or services using digital
technologies, mainly on the internet, but also includes mobile phones, display
advertising, and any other digital medium.
Digital marketing methods such as search engine optimizing(SEO), search engine
marketing(SEM), content marketing, influencer marketing, social media marketing,
content automation, campaign marketing, social media optimization, e-mail direct
marketing becoming more common in our advancing technology. Digital marketing
now extend to non-internet channels that provide digital media such as mobile
phones, callback, and on-hold mobile ring tones.
A key objective is engaging digital marketing customers and allowing them to
interact with brand through servicing and delivery of digital media. User with access
with internet can use many digital medium such as facebook, you tube, forums,
and e-mail etc. By using internet platform, business can create competitive
advantage through various mean. To reach maximum potential customers Brand
or firms uses social media as their main tools to create a channel of information.
Through this a business can evaluate and pinpoint behavioral pattern of clients and
feedback on their need and want. Creating a social media page will further increase
relation quality between new and existing consumers as well as consistent brand
awareness pyramid.
Brand awareness has been proven to work with more effectiveness in countries
that are high in uncertainty advances also that are high uncertainty avoidance.
Social media marketing work effectively but brand must not be excessive on the
use of this type of marketing that could negatively harness their brand image.
Brand that present themselves in anthropomorphizing manner are more likely to
succeed in situation where brand is marketing to this marketing. “Since social
media use can enhance the knowledge about brand and its product that decrease
the uncertainty and vice-versa.
1.1.4 CONSUMER BEHAVIOUR

Consumer behavior is the study of how individual consumers, groups or

organization select, buy, use, and dispose ideas, goods, and services to satisfy their
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 needs and wants. It refers to the action of the consumer in the market place and
underlying motives for those actions.

Marketers expect that by understanding what cause the consumer to buy particular
goods and services, they will be determine – which products are needed in the
market place and what improvement are essential to facilitates sales volume and
enhance market share and image in market. The study of consumer behavior
assumes that the consumers are actors in the market. The perspective of role
theory assumes that consumer play many roles in the market place. Starting from
the information provider from the user to payer and the disposer, consumer play
these roles in decision process.

Multiple factors affect the consumer behavior among them economic status,
beliefs and values, culture, personality, age and education (KOTLAR 2004). Finding
on consumer behavior are used to develop methods products that will boost
company performance and sales.

With 450 millions internet users in India according to a report by Social Beat, 86%
brands are leveraging digital media. The growing population of tech-savvy
internet users has massively expanded the scope of digital marketing in India and
future is looking great.

The primary reason by Brand and firms are adopting digital marketing in India is
because it is a result-oriented mode of marketing which create and provide a
platform to understand consumer behavior and how to attract and convince
consumer towards products and services which really enhance and increase
loyalty and footsteps or sales volume for firm or Brand.

This study used sample of modes of marketing strategies of SUBWAY INDIA from
which determine and elaborate the impact of marketing on consumer by
subway. The consumer come from diverse background and every company need
to understand and modify their products and services as per their beliefs, values
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and cultural factors. For which we have adopted surveys and feedback modes to
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 determine how we going to make our product sophisticated without any issues
which attracts customers towards SUBWAY.

1.2 RESEARCH PROBLEMS

Advertiser in subway are expected to shift and spends millions in digital marketing
and TV ads than print ads and other promotion media. Internet advertising broadly
consist of various commercial content formats delivered by video clip, print, and
audio, either solicited and unsolicited and includes company web sites, corporate
logos, e-mail messages, pop-ups, hyperlinks, dynamic media, and interactive games
(Ducoffe, 1996 ; Goldsmith and Laffetry, 2002).

With the rapid growth in technology, the internet is becoming an important one
stop point for consumer in finding out most of their needs and want. It
communication, entertainment, shopping, information search, internet serve as a
platform for all their requirements. This has led 79% of the ever users to glue
themselves to the internet and access to it on a regular basis. The problem is that,
volume of clients are online everyday for their personal work but they always don’t
notice the ads, banner etc. displayed on that web page, most important what is
their value. What about the reach of online advertising, is it effective across all over
target market or group?

While a lot of research has been done on advertising, the impact of online and TV
advertising in India is a segment that has been missing from studies. Research done
by SUBWAY INDIA, (2003) mainly focused on consumer attitudes and behavior
towards online and TV advertising in mainly in smart cities like Bangalore that
showed that potential customers were aware of online ads and they spend
sufficient time on TV with their families, relatives and friends. It however failed to
determine and explain the impact of online and TV advertising in use in all age
group of clients, then after conducting surveys in target markets subway is able to
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frame and develop attractive and effective ads on internet and TV ads in 2005 by
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observing reaction of client over ads of tobacco and smoking which provided a idea
 that clients in India are all aware and knowledgeable about internet and TV ads and
also about social marketing which filled the gap between customers and product
after creating and framing product as per Indian tradition like – no beef, no pork,
and different segments of veg and non-veg products.

1.3 RESEARCH OBJECTIVES

The objective of the studies were to-

The main aim of the research is to evaluate the customer loyalty in the international
market with respect to taking Subway and its marketing strategies. We need to
follow some points here. Which are establishing the image of Subway food chain by
giving their customer good quality of their product like burger, subs and sandwiches,
and also to determine the impact of marketing strategies on consumer by “SUBWAY
INDIA”

1.4 VALUE OF THE STUDY

This study may be beneficial for all food chain industries who want to attract
customers by knowing their preferences about online & TV advertising and also
for marketer, franchise owner, and academician. This study on impact of
marketing strategies by SUBWAY will help to target potential target in new areas
where SUBWAY INDIA will expand their branches.

Before adapting marketing practices to the internet, it is important to understand

the characteristics of the online customers towards online marketing like social
media ads which SUBWAY provides and that will be revealed by this study.It is
clearly mentioned above growth of internet users and its popularity as an
advertising medium because, among other things it allows 24*7 interactivity
between the advertiser and client which also provides sufficient information to
establish new and innovative changes. It is important for fast food chain franchise
owner to go for online advertising for more footfalls of customers and also to
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capture large share of market over competitor.

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 CHAPTER 2

LITERATURE REVIEW
2.1 Introduction

This study is targeted to establish the customer loyalty by evaluating and analyzing
the marketing strategies. This research present to the point review of loyalty history.
In this paper, the author arguing that the search should be replaced by a drive to
achieve maintainable business and technical liveliness.

The main aim of carrying out this method in the research topic is to make the reader
aware of the current literature, which is related to the topic. The literature review is
carried out by using of different articles, books, journals, etc., on the selected
research topic. The information is carried out using of different books and articles
where the researchers have worked in past and has provided lot of information (Hart
2006).

There are four features that will significantly have an effect on your aptitude to build
a loyal customer stand. Generally the cause of high price of keeping new customers
against the high effectiveness of a loyal customer there should be some effective
type of business strategy.

 Those products are needed which are really very distinct comparing to other
products in the market
 The products should be introduced where price is not the most important buying
factor.
 Products with a high repair component.
 A variety of products for the same purchaser
 Marketing programs should be given a lot of thought by aiming at existing
customers is helps in making customer loyalty.
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 2.2 Theoretical foundation of the study

The strategies in marketing should be shaped in order to establish the means by

which the clear set objectives can be achieved. The objectives speak what marketers
want to accomplish, direct marketing actions and are used to determine how well a
plan is working. Their actions can be related to reaching the target audience, sales,
market share, and creating responsiveness in the marketplace. (SUBWAY USA
2011). The long term goals and objectives are cut down into the short term objectives
which are used as high points and are measurable by the food chain for further
processing. Results can be investigated on a regular basis to see whether the
objectives are being met. This type of opinion allows the company to change plans
and allows elasticity.
For this research the monetary reports of both the companies were studies so that
the overall evaluation can be done. The year from 2005 to 2009 were considered to
identify their ups and downs. By comparing these two companies we found the main
threat which was occurring and after identifying those problems various suggestions
were formed, in the study. For the collection of the data, in this research only the
resulting data sources were taken into account. The information collected by these
sources is derived information. An imperative secondary data collection method has
been used in the section which can be termed as the case study analysis method.

In 2005, SUBWAY scrapped its “sub club” stamp promotion, citing a growing
number of counterfeit stamps due to online auction sites and the increase
availability of high quality printers.In November 2007, subway’s US commercials
featured the cartoon characters Peter Griffin promoting its new subway feast
sandwiches.

It has been suggested that ads use positive affects to make consumers like the ad
and then buy the product, negative affect to evoke an uncomfortable state that
makes consumer want the solution offered by the advertiser (Jared Fogle). There
are no guarantee that what the consumer actually experience will be the affective
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response the advertiser intended to create, researcher has shown that this kind of
mismatch between advertiser intension and consumer response occurs all too
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 often. These insights notwithstanding, a number of fundamental question remain
unanswered with respect to ad appeal. Why, for instance, do these appeal induce
such powerful consumer response in certain cases?

However, these effects were diminished in situations where consumer were in a

clear decision making mode. The learning of consumer preferences provide us
sufficient information to go for digital & TV advertising as it was clear that millions
of internet and social media user are available in India which will be effective to
adopt social media and TV advertising ( Jared Fogle).

Subway opened its first restaurant in India in 2001 in Bangalore. In deference to

Hindu and Muslim beliefs, subway restaurant in India do not serve pork or beef
which becomes base for framing marketing strategies to attract both communities
by considering their cultural and religious values but it was not enough in 2013
subway opened one more subway outlet which was all vegetarian and also take
care of Jain food in Paldi, Ahemdabad (subway India).

2.3 ONLINE ADVERTISING

Online advertising is a form of marketing and advertising which uses the internet
to deliver promotional marketing messages to consumers. In 2016, internet
advertising revenues in the united states surpassed those of TV broadcast. Many
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common advertising practices are controversial and increasingly subject to

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regulation.
 A significant advantages for advertiser will be the opportunity to communication
more directly with individual consumers through this medium. Marketer will also
be able to promote their product and services in a personalized, targeted manner
to interested people within their target market. Importantly, wastage of advertising
and marketing funds often experienced when exposing promotional messages to
the mass market, may be reduced as a result of using this new interactive medium.

Advertiser will need to re-address their techniques, services, and agency structure
and evolve new communication strategies for the internet as market share is being
lost to this more personalized, interactive form online advertising. Subway India
surveyed a national sample over 10,000 participants in different cities and found
majority opinion of online advertising respectively. The internet and social media
users found online advertising was informative but less entertaining, and it did not
encourage them to make purchase even they did not perceive it to increase product
prices .

Subway India (2003) examined the difference between heavy, medium, and light
web users and concluded that “heavier users holds strong beliefs about and
attitude towards web advertising which likely lead to stronger purchase”.
Comparing with lighter users, the heavy online users believed that web ads were
more believable, entertaining, informative and helpful, but understand. They think
that online advertising is a effective mode, moderately essential and it reduced cost
of product and enhance market share.

2.4 Digital Marketing

The marketing strategy adopted by subway to fresh food on consumer’s need and
preferences. The fast food franchise healthier menu selections, low start up cost
and consumer comfort, subway has also aligned with several social events and
programs. Subway is assembling a digital team of 150 full time employees over the
next 5 years, with consulting companies. The sand which chain still use to produce
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the content, while the digital tem of subway focus on technology development,
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digital strategy and consumer behavior.

 Subway taking a good look that loyalty means for consumer to integrate digital
experience, subway’s digital marketing plan focus on the consumer’s experiences
on mobile program loyalty. Digital push Subway’s market share are slipping in USA
and INDIA which is a issue of concern. Subway has released a mobile app to counter
that issues last year that is integrated with Android, Apple, PayPal, which facilitates
the tracking its client and create link to attract potential customer.

E-MAIL MARKETING

The subway websites, www.subway.com officially launches , the motion pictures,

“happy glamour” features numerous scenes at Subway restaurant. Subway always
divert the attention of customers by sending new combos and discount offers with
attractive price and also give opportunities to dine without any cost if a existing
customers visited the outlet 24 days in a month.

SOCIAL MEDIA MARKETING

Subway not only benefits from a large Facebook and Twitter audience but also gets
very high engagement scores. Subway fans and followers are very active. Subway’s
social currency score is 712. Subway is known for its footlong sandwiches, subway
connect with people and share positive stories on social media.

2.5 INTEGRATED MARKETING COMMUNICATION

Integrated marketing communications is a simple concept. It ensures that all forms

of communications and messages are carefully linked together which Subway has
implemented for delivering right messages through correct medium, at its most
basic level, IMC integrates all promotional tools, so they work together in harmony.
It allow marketer to communicate more directly with individual customers. Internet
function becomes integrated into a company’s communication mix, which permits
the operation of the online marketing as a medium to be incorporated alongside
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more traditional media type. The application of the IMC concept involves the
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 progression away from the traditional one-to many marketing communication
channels which SUBWAY has adopted like social media and e-mail marketing.

The inclusion of online marketing is the promotional mix will not eliminate the use
of mass media advertising channels such as television, radio, newspaper &
magazine but however most of the individual don’t give that much time neither
notice than they stay attentive on online especially on social media which reduced
the amount of mass media advertisement required through IMC. Most of the
existing and potential customers have the medium to access internet like smart
phones, personal computers, laptops, i-pads etc which becomes easy for audience
to utilize their time frequently which creates a opportunity for fast food chain
industries like Subway to place an effective communication through both social
exchange and commercial exchange.

The influence of the online advertisement on business-to-consumer (B2C)

relationship has new introduced a new dimension of interactivity to the
communication industry which provides a platform for both customers and
business to carry out ordering and payments transaction through application like
SUBWAY has launched a app to attract and also save time of customers especially
physical efforts (Subway India ) along with this facility , advertising as a form of
communication has become more interactive, to lure and persuade them to
experience once by making them excited as every individual in India wants to stay
good, eat good and live good which Subway make and serve as per customers taste
and preferences.

2.6 IMPACT OF ONLINE ADVERTISING

Various researchers have studied numerous and relevant factors that might have
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an impact of online advertising on Subway in India and other countries, that’s

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according to new study by restaurant consultant Technomic’s consumer ( Brand

 Metrics) consumer assessment of the leading chain on three attributes for
advertising: “has memorable advertising, “has advertising I can relate to” and has
“advertising that makes me hungry.” In a survey of 78,000 respondents ages 18 and
over, conducted from first quarter 2012 to second quarter 2013, consumer were
asked to indicate and they all response in positive way.

Overall, subway rated well on the advertising that makes clients hungry which were
most of the internet users with social media accounts which elaborate viewing
mode and duration, campaign publicity, attitude towards the web sites, and
innovative and curious advertising strategy to lure more customer towards Subway
( Jared Fogle ) examined the impact of such factors as viewing mode, visiting
frequency, and styles banner ads with color and messages. The key finding was that
that duration of page viewing is a strong determinant of the ability to recall banner
and message on it (around 20 to 30 seconds).

“while endorsements from celebrities certainly play a role in subway’s success in

marketing segments, advertisement that features the brand’s may also drive its
high rating on consumer loyalty. In terms of consumers response in the form of
liking online ads, spoke person such as ( Thinx and Casper) have found that a more
favorable attitude towards ads can lead higher ability to recall ads to know about
effect of message on “banner ads” is comprehensive or not to find out significant
relationship between positive and negative response of potential customers to
frame the web sites and advertising as per their attitude and convincing way. In
general research suggest that those customer who have positive attitude towards
ads are more able to recall than those with negative attitude (Miki Agrawal ).

Click through rate used measure for assessing the impact of banner advertisement,
which is the average number of times a viewer click on the pop-up banner to move
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where we want him/her to go and view, and banner must be concise with
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comprehensive information what Subway has develop and implemented to secure

 1 position in growing fast food chain in last 5 years by compete with McDonalds,
KFC, Burger king which were strong competitor but now as impact of online
marketing strategies of Subway in India really increase the foot step than
McDonalds, KFC, Burger King ( Subway India).

2.7 CONSUMER BEHAVIOR

According to (wikipedia), Consumer behavior is the study of individuals, groups, or
organizations and the processes they use to select, secure, and dispose of products,
services, experiences, or ideas to satisfy needs and the impacts that these processes
have on the consumer and society (Malcolm). Warner emphasized the consumption
related behaviors are often undertaken collectively. For example, some activities
performed by individuals but consumed by a family or group of people, similar as
organization purchasing activities usually followed by group decisions. Beside this
point, the consumer behavior is not just purchasing, but has usage and disposal the
goods, this type of information always be useful for company to make marketing
decisions (Malcolm). It blends elements from psychology, sociology, social
anthropology and economics, and attempts to understand the decision-making
processes of buyers, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioral variables in an attempt
to understand people's wants, and also tries to assess influences on the consumer
from groups such as family, friends, reference groups, and society in general.

This definition clearly brings out that it is not just the buying of goods/services that
receives attention in consumer behavior but the process starts much before the goods
have been acquired or bought. A process of buying starts in the minds of the
consumer, which leads to the finding of alternatives between products that can be
acquired with their relative advantages and disadvantages. This leads to internal and
external research. Then follows a process of decision-making for purchase and using
the goods, and then the post purchase behavior which is also very important, because
it gives a clue to the marketers whether his product has been a success or not(Louden
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&Bitta).
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 The black box model shows the interaction of stimuli, consumer characteristics,
decision process and consumer responses. It can be distinguished between
interpersonal stimuli (between people) or intrapersonal stimuli (within people). The
black box model is related to the black box theory of behaviorism, where the focus
is not set on the processes inside a consumer, but the relation between the stimuli
and the response of the consumer. The marketing stimuli are planned and processed
by the companies, whereas the environmental stimulus is given by social factors,
based on the economical, political and cultural circumstances of a society. The
buyer’s black box contains the buyer characteristics and the decision process, which
determines the buyer’s response.

Measuring customer behavior is a crucial part of any business. Knowing what the
consumer wants and how he acts is vital in terms of product design, and marketing
(Todd, 1997). Assessment of consumer behavior in specific situations, using
observational and physiological methods, is becoming increasingly important in
understanding conscious and unconscious consumer behavior. An increased
understanding of consumer behavior may result in the development of improved
consumer products and in more healthy dietary patterns. A growing number of
techniques is available to assist researchers in measuring various aspects of
consumer behavior such as walking patterns, product selection, meal composition,
and eating/drinking. Due to advances in digital video, sensor technology and
computer speed, complex measurements of behavior and physiology are now
possible. Integration of these techniques allows multimodal measurements. With the
growing number of techniques, the challenge for the researcher to choose the right
solution becomes larger.

There are different ways of measuring consumer behavior, depending on the interest.
Regularly conducting market research allows businesses to know their customers,
and take them into account when making business decisions. This greatly improves
business performance, and profits. The study of consumer behavior assumes that the
consumers are actor in the marketplace. The perspective of role theory assumes that
consumer plays various roles in marketplace. The role also vary in different
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consumption situations for example: a mother plays the role of influencer in child’s
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 purchase process, where as she plays a role of a disposer for the product consumed
by family.

Common methods to determine the behavior of consumer to conduct a survey to

ascertain the behavior and attitude of consumer towards your respective product and
services within your outlet and also on your websites by putting web link to response
of their experiences and within outlet by taking feedback in feedback copy to
ascertain about the thoughts and satisfaction level of consumer to take corrective
steps to alter and improve services and product if required. There are two types of
consumer survey, qualitative and quantitative studies of consumer behavior which
is similar to taking feedback and by taking answer by providing a questionnaire to
visiting clients or by providing link on bill receipt by offering offer to complete that
survey.

2.8 Online Advertising & Consumer Behavior

The evolution of the Internet as a global communication infrastructure (Cae, 2000)

has created a new advertising channel for advertisers and advertising agencies to
utilize and will provide advertisers with the means to more cost effectively target
their promotional messages to consumers. Psychological factors such as thinking,
feeling, sensation, and intuition directly correlate with customers’ online advertising
experience. Companies should aim to strengthen customer interactions with
advertisements on the Web, keeping both context and cognition in mind.
Unfortunately, most companies provide a generic experience to all customers rather
than relying on customer analysis to deliver a personalized experience. They’ve
failed to innovate and bring the online advertising experience to a whole new level
of interaction and integration that would truly let them achieve effective
communication.

Consumer buying behavior is the subject area of internal and external factors acting
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in the decision making process and Consumer behavior is the study “of the processes
involved when individuals or groups select, purchase, use, or dispose of (Kotler &
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 Armstrong, 2008). Modern advertising is developed with the development of mass
production in the late 19 and early 20 centuries. After the success of print
advertising, the idea of radio advertising prevailed this was then passed out by the
video advertising. In the late 1990s the private Television Network initiated the trend
of getting ads. With the coming of the 21st century the online advertising has
dominated the world market place and consumer community as well. Today the ad
has proved its effects and impact on consumers' buying behaviors and marketer
needs all over the world. Consumers buying behavior has always been fed so much
importance and space in the literature study of the impact of advertising regarding
its effectiveness.

As consumers experience and respond to stimuli around them, emotions arise. Their
reactions manifest themselves as physiological changes they experience as feelings.
Likewise, as people react to stimuli online—for example, to an online
advertisement—they have emotional responses that are directly proportional to their
reactions to these stimuli. On the other hand, when customers repeatedly experience
the same stimuli, they may not cause any emotional response. People become
conditioned to ignore the ever-present ads on Web sites, which is called ad blindness.

When customers weigh benefits, they become emotionally involved with

advertising and promotion. Consumers identify ways the product or service can
make them happier, improve their lives or give them pleasure. This part of the
consumer response is irrational and can lead to impulse buying and competition to
obtain the product. Repeated advertising messages affect consumer behavior. This
repetition serves as a reminder to the consumer. Behavior that stems from reminders
includes suddenly thinking of a product while shopping and making a decision to
buy it, as if it had been on the consumer’s "to-do" list (Lee 2002).

Consumer behavior splits between loyalty and alienation depending on how well the
product lives up to its advertised benefits (Thorson, 2000). Corporate behavior –
such as scandals or charity work – can also affect alienation and loyalty responses.
Once the consumer makes this choice, advertising and promotion are not likely to
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undo that decision. The Cannon-Bard Theory that Walter Cannon and Philip Bard
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advocated suggests human beings feel emotions first, and then act upon them. When
 customers visit a Web site, the ads they encounter evoke an emotional response—
before they even decide what their next step should be. If ads don’t trigger
customers’ emotions, they may not take any action in response.

Based on the feedback and review of the research studies mentioned above, it is clear
that Online advertising is gaining much attention and should be essential part of a
marketer’s advertising promotion mix. These findings needs further studies on
Online advertising to gain more insight into consumer’s response and perception of
the Internet as an advertising medium. Hence this study determine the impact of
Online marketing through digital medium is effective on consumer as growth and
attitude of consumer over internet and content messages and choice of medium of
Online marketing.

CHAPTER 3
RESEARCH METHODOLOGY
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3.1 Introduction
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 This chapter focuses on research methods that was used in this study. It provides a
detailed description of the research methods and approaches in this study to ascertain
the impact of marketing strategy of subway on consumer behavior.
Market research is when the information is collected about customers, rivalry,
market and its development. Planning, investigation and feedback form are the
regarding tools for market research, it is simply an exploration into a specific market
and this concept is very much contracted. Advertising research is a largely wider as
it not only contains marketplace research, but also research into new products, or
means of delivery like online marketing.

3.2 Research Design

This study used descriptive research involves gathering data through creating and
presenting questionnaire to ascertain the impact of marketing on consumer where
1000 respondent were shared their experiences about subway and its marketing
strategies in 3 days.

3.3 Targeted Population

This study targeted the population of different age groups to see the behavior and
attitude of clients of different age groups for Subway and its products. Almost 1000
respondents share their experiences and How they share their feelings on social
media which took almost 3 days in 2018.

3.4 Attitude Of The Clients

1000 Respondents were asked about their general attitudes toward subway
advertisements. These were “Subway ads, with creative ideas attract my attention”,
“Subway advertisements with vivid colors attract my attention”, and “The larger-
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than-life subway advertisements attract my attention”. These were some responses

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 of surveys done in 3 days by taking feedback in feedback copies and also in
questionnaires.

3.5 Validity & Reliability

Content validity refers to the extent to which an instrument represents the factors
under study. To achieve content validity, questionnaires included a variety of
questions on the knowledge of students on internet advertising and consumer
behavior. All the subjects completed the questionnaires in the presence of the
researcher. This was done to prevent subjects from giving questionnaires to other
people to complete on their behalf. Reliability of data is totally depend upon the
nature of data collector but data was collected by the employees of subway under
supervision of supervisor.

3.6 Data Analysis

There are some financial data which are obtained from the annual report of one major
food chain (Subway). For this rationale, the researcher has to recapitulate and
rearrange all the data, which has collect data in a proper and systematic format. This
systematic format converts raw data into some well defined findings which make the
process of analysis easy for the researchers, where questionnaire and with some
relevant tabular representation of collected data to ascertain impact of online
advertising and consumer behavior and its relationship.

CHAPTER 4
26

DATA ANALYSIS AND DISCUSSION

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 4.1 Background of the study:

The study initially sought to ascertain the general information on the respondents
involved in the study with regards to the year of study, age, and gender. The
demographic information points at the respondents’ suitability in answering the
questions on the effectiveness of internet advertising on consumer behavior by the
outlet staff of Subway in sector 15 which includes 100 respondent in 3 days to
ascertain the awareness of Subway among the inhabitant of Faridabad, this chapter
mainly focused on questionnaire attempted by respondent, mentioned above and in
figure1 of 2015.

Questionnaire Assessment:

1. Have you ever heard of Subways Restaurants?

 Yes (86%)
 No (14%)

Figure 1: Graphical View Of Subway Brand

Source: Subway.com
This figure 1 shows the awareness among people about Subway in surveyed areas
where 1000 respondents involved and they share their experiences and feedback to
ascertain the impact of online marketing on consumer where only 14% of people
were unaware about Subway and they are not satisfied with Subways services which
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need some improvement in marketing in social media marketing.

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 Table 1 Distribution of the respondents by age bracket

AGE FREQUENCY PERCENTAGE

19-25 years 820 82%
26-35 years & more 180 18%
Total 1000 100%

Source: Subway.com
This tabular represents the people of different age group who are all aware about
Subway through online advertising and social media especially between 19-25 who
are targeted customers at initial stages of Subway in marketing and also to attract
customers towards their products.

Table 2 Gender distribution of the respondents

GENDER FREQUENCY PERCENTAGE

Male 720 72%
Female 280 28%
Total 1000 100.0%

Source: Subway.com

This table 2 represent the data about gender percentage of male & female clients who
are aware about Subway brand also satisfy with the services they were offered. This
is the information collected in 3 days by feedback and by questionnaire attempted
by customers.
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