A STUDY ON IMPACT OF ADVERTISING ON CONSUMER BUYING

BEHAVIOUR IN THANE REGION

INDEX

SR.NO PARTICULARS PAGENO

1.1 INTRODUCTION OF
ADVERTISING
1.2 DEFINATION OF
ADVERTISING
1.3 TYPES OF
ADVERTISING
1.4 IMPORTANCE OF
ADVERTISEMENT
1.5 FEATURES OF
ADVERTISING
1.6 IMPORTANCE OF
CREATIVITY IN
ADVERTISING
CHAPTER 1 1.7 BENEFITS OF 4-39
ADVERTISEMENT
1.8 LIMITATIONS OF
ADVERTISING
1.9 INTRODUCTION OF
CONSUMER
BEHAVIOUR
1.10 DEFINATION OF
CONSUMER
BEHAVIOUR
1.11 CHARACTERISTICS
OF CONSUMER
BEHAVIOUR
1.12 CONSUMER
BUYING PROCESS
1.13 TYPES OF
CONSUMERS

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 1.14 BUYING MOTIVES
OF CONSUMERS
1.15 TYPES OF BUYING
MOTIVES
1.16 IMPORTANCE OF
CONSUMER
BEHAVIOUR
1.17 HIGH
INVOLVEMENT AND
LOW INVOLVEMENT
PRODUCTS
1.18 FACTORS
INFLUENCING
BUYING BEHAVIOUR

RESEARCH
METHODOLOGY

2.1 BACKGROUND OF
THE STUDY
2.2 OBJECTIVES OF THE
STUDY
2.3 HYPOTHESIS
2.4 SCOPE OF THE
CHAPTER 2 STUDY 40-45
2.5 LIMITATIONS OF THE
STUDY
2.6 SIGNIFICANCE OF
THE STUDY
2.7 SELECTION OF THE
PROBLEM
2.8 RESEARCH DESIGN
2.9 RESEARCH
APPROACH
2.10 DATA COLLECTION
2.11 SAMPLE SIZE

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 2.12 TOOLS AND
TECHNIQUES USED

CHAPTER 3 LITERATURE REVIEW 46-57

CHAPTER 4 DATA ANALYSIS, 58-75

INTERPRETATION AND
PRESENTATION

4.1 DATA ANALYSIS

AND PRESENTATION
4.2 DATA
INTERPRETATION

CHAPTER 5 CONCLUSUIONS AND

SUGGESTIONS
76-77
5.1 CONCLUSION
5.2 SUGGESTION

BIBLIOGRAPHY 78

ANNEXURE 79-82

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 CHAPTER 1

1.1 INTRODUCTION OF ADVERTISING

What is advertising ?

Advertising is a promotional strategy that seeks to promote to a target audience a product or

service. It is one of the oldest types of advertisement that seeks to impact the behavior of its target
audience to either buy, sell, or do something specific.

Advertising, such as email marketing and search engine marketing, is far older than most other
marketing operations. Advertising has been split into two fields: traditional advertising and digital
advertising, as the internet has become the trend.

Print, TV, and radio advertisement, which has been popular for more than 150 years, are traditional
advertising. Print advertising for organizations is the most productive advertising since it revolves
around a target consumer that receives the advertisement personally via flyers, newspapers, and
mail.

Digital advertisement focuses on all online advertising operations, such as display advertising,
PPC, social media advertising, etc. This type of advertisement is easier and cheaper to monitor, so
it has become a more popular form of advertising.

1.2 Definition Of Advertising

• The word advertising comes from the Latin word ‘advertere’ meaning ‘to turn the mind
toward’. This means that advertising should draw the attention of the audience, get them
interested in the product or service being advertised.

• Advertising is a means of communication with the users of a product or service.

Advertisements are messages paid for by those who send them and are intended to inform

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 or influence people who receive them, as defined by the Advertising Association of the
UK.

• According to American Marketing Association “ Advertising means any paid form of non-
personal presentation and promotion of ideas, goods, or services by an identified sponsor.”

• According to Philip Kotler, “ Advertising is any paid form of non-personal presentation

and promotion of ideas, goods, or services by an identified sponsor.” In simple words, “
Advertising is a means of informing and communicating essential information.”

1.3 Types of Advertising

Advertising is a type of communication that is advertised that includes a message promoting or

offering a good or service or a concept or trying to sell it. It is known as a mode of communication
in marketing.

1. Online Advertising:

In the form of online advertisement and digital advertising, the message is communicated over the
internet. A big source of income for any website advertisement is in the last decade, online
advertising has been very successful and has exceeded the standards of most advertising experts.
Google's revenue of 60% is created from advertising, and the same goes for Facebook.

Online advertisement has been so successful that at a given moment a specific ad may be aimed at
a specific individual of a specific age of a certain place. Compared to the other types of
advertisement, advertising online is very cheap in terms of cost.

Occasionally, individuals do not click on the ads and the ad does not reach the intended audience,
the biggest drawback of online advertising. The online set-up often needs technological skills that
might not be practical for all. One of the fastest rising forms of advertising is digital and online
advertising.

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(a) SMS Advertising:

The most common form of mobile advertisement is SMS marketing. Users are given information
about the product or service in 200 words or less. This was back when cell phones didn't have
internet access. As cell phones gained internet access, all internet ads flowed to mobile phones,
and experts believe that in the near future, mobile advertising would be the only big advertising
strategy for almost every business.

Mobile advertising has a fast, personalised, and efficient reach, and it costs very little, much like
online advertising. The difference between online ads and mobile ads is that online ads can be
viewed on any device, such as a computer or a desktop, while mobile advertising can only be
viewed on a mobile device.

2. Television Ads:

Around ten years ago, the most common medium of advertisement was television. Events such as
the super bowl, international cricket tournaments, Olympics are the brands' biggest opportunities
to promote their goods. It is still successful for most advertisers to a certain extent, however with
the introduction of online television viewing on mobile phones, marketers now have switched from
television to online as their primary advertising tool.

3. Ads in Theatre:

Before all the movies starts or during the intermission, the advertisements in cinemas are called
movie ads. This is one of the most costly types of advertisement and viewers are unable to skip
changing the channel or turn away from it. Many businesses have continued to opt for movie
advertisements so it means that the whole message hits the viewer and the audience does not
interrupt until the advertisement is done, unlike online ads. Film advertisements are different from
ads for placement.

4. Product placement:

Under which a product is quietly hidden in the entertainment media, product placement is
considered secret ads. There is no mention of the product much of the time, even if the viewer sees
the product. The key areas where product placement is performed are movies. There may be a few

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Tv programs where product placement is being used, but other than TV shows, the impact is seen
in film.

In the movie I Robot, Will Smith is then seen playing with his Converse sneakers. In How I Met
Your Mother, several beer labels are promoted. In famous programs such as Family Guy, funny
ads such as Red Bull, Sony, Apple, Microsoft, Samsung and many others are placed across the TV
show.

With several Netflix and Amazon prime users, product placement is constantly have been used
and is one of the most popular advertising forms.

5. Radio Advertisement:

The radio advertisements are those that have been generated by radio waves and heard all over the
world on radios. These often consist of ads or jingles that are audible. Although some think this an
inefficient method of advertisement, each morning there are several people listening to the radio.

On the radio, ads can be heard for almost every product. Unlike other platforms where the
consumer can see the product inside, any single aspect and advantage of the product must be
clarified on the radio.

6. Print Advertising:

The gradually declining method of advertisement is printing. When publishing was a significant
advertisement medium and known to be one of the most powerful media, there were days before
the development of television. Yet print advertisements also taken a backseat since the rise in
television use.

Print advertising's biggest drawback is that the shelf time of the advertisement is limited. However,
since its scope is strong, one of most costly and most successful forms of advertising is print
advertisement. The few forms of print ads are below.

(a) Magazine Advertising:

This are often referred to as periodic advertisements wherein ads uses a weekly publication that is
fortnightly or monthly. Ads are printed in the sides or even on the whole magazine page, and an
additional page may also be clearly added for advertisement. For example, business magazines

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will include advertising from Rolex watches, while entertainment magazines may feature ads from
high-branded apparels, ads are classified and separated according to the magazine category.

(a) Brochures or handouts:

Brochures are promotional materials given out at various places to advertise a specific product.
They are typically given out at a point of purchase. Brochure advertisements are self-contained
and do not rely on a foundation like magazine advertisements.

(b) Newspaper Advertising:

Newspapers feature a large range of advertisements, covering from matrimonial services and job
searching, to government notices and circulars. In the early 20th century, newspapers were the
extremely popular medium of advertisement and still to a certain degree. But they have switched
to mobile and computers with the introduction of the Internet and digital advertising.

7. Outdoor Advertising:

Outdoor advertising consists of putting banners and hoardings with large posters for the
advertising. These can be seen on the side of the road, on the glass of large buildings, or in clearly
targeted areas with enormous public inflows. Even though earlier printed advertisements have
frequently been used for outdoor ads, digital boards have replaced them. These boards show
commercials without any need for advertising to be printed.

8. Global:

While some have listed Google ads as a different form of advertising, it is more of a technique
than a type of advertising. In global advertising, a single ad is broadcast in all countries where the
product is sold, regardless of the target audience or language. Apple advertisements are considered
to be the most effective in the world. They're also known for refusing to use celebrities to advertise
their products. The advertisements are standardized and run in English around the world.

9. Outdoor Blank Space Advertising:

Is a newer type of advertisement that ensures a wide audience reach. Space advertising is the
process of filling empty spaces with advertisements. Metros, taxis, cabs, flight seats, and movie
theatre seats (where advertising is done on the removable seat covers) are all examples. These

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facilities have proven to be very popular because they are used by a large number of people and
have a long shelf life.

10. Online E-mailers:

Although others have categorised this in with internet ads, because of the personalization, E-
mailers have been given their own category. E-mailers are more successful than most other types
of ads because they have a personalised letter and a personalised greeting. Thousands of dollars
are spent to ensure that mail enters the mailbox of the customer rather than being discarded as junk
mail.

1.4 Importance of Advertisement

1. Crucial for a launch:

The launch of a brand new product or service in the market requires the use of ads.

If a product or a service is marketed properly in the correct manner, using the right media, and
within a specific time span, it will attract a significant number of new buyers. It supports in the
development of a demand and the rise in an advertiser's revenue.

It's also important for promoting an upcoming event.

It serves as an open invitation, increasing the probability of event participation. People will not
turn up if they are unaware that anything like this is happening. As an outcome, it's likely that the
incident will not receive the predicted response. As a result, it leads to an event's success.

2. Source of Revenue:

For publishers of media such as newspaper, News channels, magazines, and blogs advertisement
is a significant source of income.

The cost of handling any useful information is generally greater than the value of selling it. Various
data collection and active trade, such as research (investigation), technical writing, typing, copy
editing, publishing in the form of printing or online web storage and distribution, increase a
publisher's cost.

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It ends up paying publishers for their input expenses in exchange for the use of their advertising
network to attract the highest amount of people possible. Indirectly, users of publishers (mostly
readers or viewers) benefit from inexpensive (or even free) access to high-quality content
databases as a result of it.

Newspapers, for instance, sell for pennies despite having very high input costs. Since most of their
input costs are recovered from sponsors and ad-networks, most online websites provide free and
unlimited access to their information database 24 hours a day, seven days a week.

3. Sales Promotion:

The aim of advertising is to promote products, services, ideas, and events.

It is for the promotion of:

• Cosmetics, electronics, eatables, stationary, jewellery, textiles, and other consumer

products are included in this group.
• Banking, insurance, accommodation, air transport, consulting, healthcare, education, and
other industries provide services.
• Ideas An entrepreneur, for example, will encourage the general public to invest in his
business concepts.
• Exhibitions, ceremonies, rallies, and other events held during a festival or gathering.

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4. Increase Sales:

Advertising inspires people's curiosity in advertised products and services. In the market, interest
generates desire. Greater purchases was soon the result of higher demand. Eventually, the
advertiser completes his primary target of advertising investment.

Therefore, in order to sustain such revenue growth, the advertiser or retailer must keep a decent
price-quality ratio while still running his advertising campaigns on a daily basis.

5. Maximize profit:

Advertising results in the rise in revenue and the management of the advertiser's expenses. It aids
in increasing the distance between his revenue and expenditures. An advertiser's benefit increases
as profits are raised and costs are reduced.

As a result, it leads to the advertiser's profit maximization.

6. Consumer Awareness:

Advertising creates awareness by informing consumers.

(a) Awareness:

It raises customer awareness about the availability of any given product or service on the market.
It aims to convince them that the marketed product or service is superior to other options currently
on the market.

(b) Information:

It primarily informs a customer about the various features, advantages, price, and application of a
promoted product or service. It often provides the user with information such as the brand name
or trademark used, the manufacturer's or service provider's address, and other key information.

It eventually helps a customer in making the best buying decision by raising awareness and
providing relevant information.

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7. Educate the society:

Advertisement has a tremendous capacity to attract large numbers of people to educate them. As
a result, many governments and non-governmental organizations (NGOs) depend on ads to reach
out to the public and inform them about critical social problems.

In the interest of the public, innovative advertisements educate people about:

• Creating a family
• AIDS education
• Water usage and resources
• Make compulsory schooling for children
• Giving enough care for the mother and her unborn child
• Keeping rid of child labour, etc.

8. Demands Creativity:

Without the ability to think creatively, advertising is impossible. To put it another way, creativity
is its nature (main ingredient or soul).

An advertising must have certain key aspects or essential characteristics in order to be

competitive.

The five must of an advertisement (ad):

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• Creative
• Original
• Not a copied one
• Artistic
• Attractive or appealing to large masses

To produce innovative and appealing advertisements, specialist advertising companies must

employ people with creative minds. Experts who think beyond the box, bring newer ideas, catchy
jingles, and demonstrate creative presentation skills must be chosen for this.

“Hello! Honey Bunny” is a brilliant example of a creative advertisement.

Idea Cellular Ltd. (a mobile service provider in India) has launched a campaign called "Hello!"
Bunny, honey.” This advert was so adorable and addictive that it instantly went viral.

9. Elements of Marketing Mix:

A component of the marketing mix is advertisement. It tends to promote sales.

It is becoming extremely difficult to market anything in highly competitive markets. Customers

are more careful and aware of the goods they purchase and use these days. They don't simply leave
their preferred products or services until and unless something different entertains them in a special
way and enables them to pursue it.

10. Target Oriented:

Advertisement is by its very nature target-oriented.

In general, target oriented refers to paying close attention to or focusing solely on one item at a
time.

It means to concentrate on (i.e. target) or deliver exposure to a specific category or class of

consumers in the sense of advertising.

Audi (a German luxury car manufacturer), for example, designs and targets its premium vehicles
to meet the comfort, desires, and demands of a wealthy elite class. Maruti Suzuki, on the other

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hand, is a car manufacturer that primarily targets middle-class families in India with its fuel-
efficient sedans.

Advertising is effective only if it is focused or target-oriented.

11. Monitors demand and supply:

Advertising, when performed repeatedly, helps in the the demand for branded goods and services.
The rising demand for goods and services must be met with an equal amount of supply and efficient
delivery. It's crucial to keep a close eye on the demand and supply functions to ensure that none of
the demands go unmet.

If supply does not keep up with rising demand, the market will lose interest and demand will
decline. If this happens, the sale will suffer as well, and the promotional costs will not be recouped.
This will eventually result in losses.

As a result, when advertising increases demand, a sufficient supply must be available to satisfy it.
To ensure proper compensation, the demand and supply functions must be closely monitored.

12. Builds Brand Image:

Advertising promotes goodwill and results in the development of a brand's image in the market.

Branded goods and services become extremely successful as a result of repeated advertisements.
People are more trusting of advertised brands than they are of non-advertised brands. Many
customers choose well-known branded products because they are typically manufactured from
high-quality raw materials. As a result, there is a rise in demand for labelled brands.

The importance of a brand name increases over time as its reputation grows and loyalty grows.
This, in turn, increases sales of branded goods and services. It also raises the profile of the company
that manages these brands.

13. Generates employment:

To meet the growing demands of their customers, advertising companies are actively looking for
newer innovative ideas (advertisers). Each ad assignment (project) requires a significant amount
of mental energy. Projects must be finished and submitted within such time periods. Moreover,

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the advertiser must accept (approve) the idea of the advertisement. Overall, this increases the need
for creative people, resulting in new job opportunities in the advertising industry.

It hires worthy creative minds, directors, cinematographers, photographers, models, graphic

designers, sales executives, and managers.

1.5 Features Of Advertising

1. Provides Information:

The main purpose of ads is to educate target customers about a product. It includes information
such as features, uses, costs, advantages, the manufacturer's name, and how to use the product
effectively.

2. Paid Communication:

Advertisers are chosen, assigned, and paid by companies to prepare ads that include the size, logo,
and other information. These marketers are expected to create an advertising template or model
that is customized to the goods and needs of the companies.

3. Non-Personal Presentation:

Advertisement is a non-personal presentation that uses advertising tools such as television, radio,
newspapers, and other outlets to attract a wide range of people.

4. Publicity:

Advertising offers publicity to products, services, and ideas in the same way as it provides
information about the product. Advertising facilitates the flow and movement of information in
order to raise public awareness of a subject. Project Sunlight, for example, of Hindustan Unilever
Ltd. (HUL), recently launched ‘Bright Future Speeches,' in which Indian youth express their
concerns on the need for sanitation and hygiene through films and television advertisements (HUL,
2014).

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5. For Persuasion:

Advertising's primary aim is to convince and draw prospective buyers to new ideas that can
contribute to retail sales. This ensures that the evidence must be truthful and convincing in order
to convince customers that the product is superior to the current competition.

6. Creativity:

Advertising, which involves presenting a product in an imaginative, attractive, and desirable way,
depends heavily on creativity.

7. Target Oriented:

Advertisements are created to meet the demands and desires of target audiences and consumers.
Advertisements use specific characters, themes, props, logos, and narratives to represent target
consumers and markets. Protein health drinks such as Horlicks, Complan, and many others, for
example, are marketed to children who represent young urban India, and emotions are aimed at
excelling in studies, athletics, and overcoming competition.

1.6 The Importance Of Creativity In Advertising

“The use of imagination or original thoughts to produce something” is how creativity is described.
That is what gives value to brand marketing in ads. People always believe that technology is the
most important aspect of the technology industry, but without creativity, you won't be able to build
positive relationships with your customers. Advertising without creativity is similar to having a
key without a lock; one is useless without another.

1. Creative equals Personalization:

Consider entering a coffee shop and reaching the counter to place an order. Instead of placing an
order, the man behind the counter now asks, "Same as usual?" That is what personalization is all
about. You can only save time and energy, but you still get noticed and make a relation. The same
could be said about Creative Advertising; when a message is delivered in a customized and creative
manner, consumers are more likely to engage. Online shopping, like your coffee shop experience,
gets a lot more comfortable.

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2. Creative equals brand recognition:

One way to build brand awareness is to provide value to your customers by establishing positive
relationships through innovative ads. Customers are more likely to respond to an advertisement
whether it is relatable to them or important to their needs. By delivering meaningful, appropriate,
and effective ad creative to their target audience, businesses may build a strong brand.

3. Creative equals storytelling:

When writing a brand script, the emotional impact should be the primary consideration. In order
to establish a human bond, emotional influence is essential. If people can connect to your product
in any aspect, they are more likely to buy it. Not only does storytelling help you engage with your
customers, but it also helps you create a compelling image for the brand by taking the reader on a
trip with you and leaving less questions unanswered. The opportunity to attract consumers is often
improved by telling a story about your brand. People are more likely to remember your brand until
they know it and can have a bond with it. In the marketing strategy, this becomes a strategic
framework.

4. Creative equals engagement:

When brilliant creative is combined with excellent targeting, supported by the new technologies
and data resources, ad efficacy is boosted. It can sound self-evident, but targeting a broad number
of customers with ads is vital to a campaign's success: only consumers who are exposed to an
advertisement can be influenced. More and more curiosity and relevance an ad will generate for
the customer, the more likely they will be engaged.

1.7 Benefits of Advertisement

Advertisements are paid communication tools or messages used in marketing and advertisement
campaigns to increase potential consumers' awareness, interest, and desire for the goods or
services being promoted.

Human “potential and current customers” are subjected to a range of advertisements on a regular
basis, including TV and radio promotions, outdoor billboards, printed ads in newspapers or

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magazines, and digital internet ads on social media platforms and search engines, all of which
are part of numerous advertising campaigns that serve a variety of purposes and offer unlimited
benefits for small, midsize companies and well-known brands.

1. Increasing Brand & Product Awareness:

Various types of advertising have been helpful in enhancing awareness of new products in
potential consumers and communicating the news about the industry in a small amount of time
over the past decades.

Advertising is a viable option for educating people of newly introduced products or services,
highlighting competitive advantages in current products, and highlighting updates or new features
incorporated to existing products or services, among other things.

Limited promotions or up - selling opportunities require immediate responses from targeted

customers, which can be done by advertisements, specifically digital advertising strategies such as
social media ads, which take less time to create and launch.

2. Standing out from the Competition:

Each day, new alternatives for what the company provides are created, increasing competition and
require creative marketing and promotional strategies to stand out.

In this situation, effective targeted ads that reflect on the competitive advantages of your products,
the unique added value to consumers, how appropriate your rates are for their needs and planned
added value, and the quality level of after-sales service and support solutions would be beneficial.

3. Attracting Current & Potential customers:

Following the acquired image, ads will encourage targeted customers to take additional steps
further down the purchase process by attracting current and future customers to associate with your
company through:

• Increase foot traffic to your stores or branches by displaying your business location details in
your ads and publicising the launch of a new store or branch. More leads can be created by
using advertisement campaigns that are explicitly designed for this purpose, such as Facebook
ads and LinkedIn ads.

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• Increasing visits to your business website (ex: e-commerce store) or mobile app using pay-per-
click (PPC) advertising accessible via search engine marketing solutions such as Google
Search ads or appropriate social media ads.
• Using the right types of ads to increase contact and interaction with specific consumers, such
as “Messenger ads on Facebook, LinkedIn, Twitter, and Instagram advertising solutions” or
clarifying communication choices on TV and print ads.
• Expanding the amount of interested people who follow your business on social media sites that
are appropriate for your business.
• Increasing the number of subscribers to the email marketing campaigns and sending out email
newsletters on a daily basis.
• Taking advantage of "word of mouth" publicity as customers are active in advertising activities
and are ready to tell their friends and family about their experiences with your business.

4. Educating Your Business Customers:

Customers are motivated to make a purchase because they are 100 percent certain that a product
or service can meet their needs.

Advertisements can be used to inform consumers of the advantages of available goods or services,
as well as how they can rely on what you're doing to fix similar personal or business issues.

Promoted educational content relevant to the needs and problems of the potential clients can show
market leading or business leadership for your company and raise interest in choosing you over
rivals.

Video advertisements, such as those used on YouTube or on television, can also be used to teach
your clients how to use your products to meet their needs (for example, product tutorials or how-
to videos).

5. Increasing Sales Volume and ROI:

By approaching current and future consumers who are one step away from completing desired
conversions, ads may also accomplish the most challenging task of driving more revenue for your
company and growing return on investment (ROI).

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Offline advertisement campaigns will raise awareness of your company's services, while digital
advertising strategies such as search engine ads, social media conversion-optimized ads, and
retargeting ads will reach interested consumers who have shown an interest in what your company
has to offer, and you can only be paid if customers "click" on your ads.

Cost-effective online ads can boost revenue at the lowest possible cost, allowing you to maximise
the return on your conversion-optimized and retargeting “Cross-Selling & Upselling” promotions.

By opening new branches, outlets, or targeting new markets and territories, or attracting new
partners, achieving the desired level of returns on investment would open opportunities for growth
and expansion.

Using international offline advertising solutions including newspapers, magazines, and TV & radio
networks to target new markets, or using geographical targeting options available in digital
advertising solutions to reach new targeted segments with personalised ads, advertisements would
be helpful in this process.

6. Improving Your Brand positioning image:

Effective ads created for advertising campaigns that seek to build a positive image of your brand
or boost a negative current perception to place your brand as the No. 1 option for similar products
or services will help you achieve successful business branding.

These types of ads should stress your company's principles, product quality, fair pricing policy,
and how professional your company's customer service options are, as well as the fact that your
customers' satisfaction is always your top priority.

When the intended audience is exposed to something relevant to your brand, visual advertisements
such as video ads are a good choice because they maximise ad recall over a longer period of time
and gain immediate exposure.

7. Supporting Other Business Operations:

As previously said, advertising is a component of the company's marketing policy, and ads are
successful when they produce the intended results while still supporting other departments, such
as:

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• Obtaining the optimal level of awareness for long-term, unpaid ad projects.
• To help salespeople in their goal, establish background knowledge about your products or
services.
• Customer service operations could be made easier by educating your customers about your
business.
• Using sponsored recruiting ads to find needed skills and workers.
• Maintaining a favourable view of the company's "professional profile."

1.8 Limitations Of Advertising

1. Adds to Cost:

An organization would invest a significant amount of money in ads. It raises the price of the
product. To cover this cost, the product's price is increased. No manufacturer covers the costs of
ads from of his own pocket. As a result of advertising, costs rise unnecessarily. Advertising costs
are seen to be carried on to customers in the form of high costs in this reference.

2. Undermines Social Value:

People use advertising as a form of daydreaming. It is bringing people away from science and into
the world of artificiality these days. People learn about the new products through this medium.

They can only use a small number of products. The innovation of new products irritates them
greatly. They want to buy them, but they don't have the money to do so. As a result, they become
dissatisfied with their current situation. Advertising, when seen as a social evil, may be said to be
a threat to social values.

3. Confuses the Buyers:

Advertising often portrays a manipulated image of fact. Customers who believe in ads purchase
the items. They felt cheated after using it.

They later discover that the information shown in the advertisement was incorrect, and that the
actual product was very different. As a result of the bad portrayal, people lose faith in
advertisements. Advertising, according to this guide, confuses rather than supports.

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4. Encourages Sale of Inferior Products:

In advertising, every producer portrays his product as superior. As a result, the customer is unable
to determine which product is truly excellent.

As a result, even after paying a high price, getting a decent quality product is difficult. It becomes
a habit for a seller to get a decent deal for a substandard product. It has an effect on other vendors
as well. As a result, it is said that advertising promotes the selling of substandard goods.

5. Some Advertisement in Bad Taste:

Advertising often utilizes foul language and inappropriate images in order to appeal to a certain
audience. They could be insulting to a certain social group. It lowers the quality of social ideals.

People are usually opposed to this kind of advertisement because it affects their emotions. Any ads
also are in bad taste in this context.

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1.9 INTRODUCTION OF CONSUMER BEHAVIOUR

What is consumer behaviour ?

The analysis of how individual consumers, groups, or organizations choose, purchase, use, and
dispose of products, objects, and services to meet their needs and desires is known as consumer
behaviour. It applies to the consumer's behaviour in the marketplace and the motivations behind
those actions.

Marketers expect to be able to determine which products are needed in the marketplace, which are
outdated, and how best to present the goods to consumers by understanding what motivates
consumers to buy certain goods and services.

Consumer behaviour research assumes that customers are participants in the marketplace.
Consumers are assumed to play different positions in the industry, according to position theory.
Consumers play a variety of roles in the decision-making process, from information provider to
customer to payer to disposer.

In various usage contexts, the functions vary as well; for example, a mother may act as an
influencer in a child's buying process, but she may also act as a disposer for the family's products.

1.10 Definition of consumer behaviour

• James Engel, Roger Blackwell and Paul Miniard define “consumer behaviour as the activities
and decision process of people who purchase goods and services for personal consumption.
• David Loudon and Albert Bitta define “consumer behaviour is the decision process and
physical activity, which individuals engage in when evaluating, acquiring, using or disposing
goods and services.”
• G.Belch and M.Belch define “consumer behavior is the process and activities people engage
in when searching for, selecting, purchasing, using, evaluating and disposing of products and
services so as to satisfy their needs and desires.”

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1.11 Characteristics of consumer behaviour

1. Bargaining:

Customers' conduct often shows a bargaining pattern. They want to purchase goods at a lower
price than the seller has said. Indian consumers, too, do not follow a clear pricing strategy. In
Indian markets, the practice of bargaining is still common.

2. Quality vs Price:

Consumers are more concerned with price than with product choice. As a consequence, they prefer
high-priced products. A slight shift has occurred, as buyers have started to buy better-quality
products at a higher price.

3. Brand or Trademark Consciousness:

The buyer's conduct is distinguished by the fact that he seems to be conscious of the item's brand
and finds the items to be genuine and of higher quality.

4. Changing The consumption Patterns:

The consumption pattern is changing as a result of widespread schooling, rising income and
standard of living, and a desire for more comforts. Low and high income groups are rapidly
purchasing refrigerators, tape recorders, coolers, sewing machines, and other related products.

5. Role Of women:

Women are playing an increasingly important role in buying decisions. Women buy anything,
particularly in families where the husbands are the homemakers.

6. Credit and Guarantee:

Because of the availability of credit and guarantee facilities in the industry, new reasons for buying
are gaining momentum quickly. Trade and commerce are rising as a result of these facilities.

7. Complaining:

Buyers are becoming increasingly conscious of their rights. They've started airing their grievances
in the media and making representations to the appropriate authorities and forums. They will file

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a complaint with a consumer forum and, as a result, receive compensation for the harm or loss they
have suffered.

1.12 Consumer Buying Process

To understand consumer behaviour, one must first understand the consumer purchasing process.
The buying process refers to the various phases that a customer goes through before making a
purchase. Consumers have to many wants and needs, with the most urgent needs rising to the top.
This is referred to as "need recognition." Following that, the consumer looks for specific product
information on the basis of which a decision is made and a purchase is made.

The post-purchase behaviour of an unhappy consumer is analysed after they have consumed the
product, and the process begins again. Each stage of the consumer purchasing process presents a
challenge to the marketer, who must first gain a detailed understanding of consumer behaviour
before developing a marketing strategy.

The various stages in consumer buying process:

1. Need recognition:

An unfulfilled need is the starting point of the purchasing process. The expected need or desire is
what leads to the next level. Every consumer, as we all know, has a long list of desires or needs,
many of which are unmet. When certain unmet requirements are found, the purchasing process
begins. It is important to remember that need recognition should be limited to those needs that
cause the customer to become restless and tense if they are not met. He should have the impression
that he has a need or need that needs to be met.

Dissatisfaction with an existing product or service may lead to restlessness and the need to fulfil
the urge. Needs and desires emerge as a result of internal or external conditions. A person's deepest
desires may become dominant and pressing in the right environment.

External conditions where the user is subjected to various ads and individuals may also cause
needs. The pace at which wants must be fulfilled is determined by their strength or urgency. Since
resources are scarce, the most pressing or urgent desires are met first.

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2. Information Search:

He must find out a suitable product that will better meet his needs in order to fulfil the need that
has occurred. As a result, customers are excited to know more about the product. There are a
variety of sources from which knowledge can be obtained.

He can look for personal sources such as relatives, friends, employers, and neighbours, or he can
look for commercial sources such as advertisements, stores, and so on, or he can look for other
individuals who make up the public source. In this way, he tries to gather relevant information
before buying the product, as he is able to meet this need.

3. Evaluation:

The need to meet a need leads to the evaluation stage, in which the consumer attempts to assess
the information he obtained during the pre-purchase stage of the information search. This is a stage
in the consumer's mental evaluation of the product. He has a range of options in front of him based
on the knowledge he has got, and he must choose one.

His decision will be based on the relative value of each option, i.e. how well the product will fulfil
his needs, i.e. the product's ability to satisfy wants. He supports or refuses the alternatives based
on factors such as product characteristics, brand value, services, convenience, and so on.

4. Purchase Decision:

A good product decision or review leads to a buying decision. This choice indicates a customer's
loyalty to a product or service. He buys the product here, and the exchange process is complete.
Trial purchases and adoption purchases are also options.

The amount of trial sales are for non-durable products that the buyer is purchasing for the first
time. Adoption sales are made for consumer durable products because they are not bought
regularly. Consumers may be pleased or disappointed after consuming the products. Repeat
purchases are based on customer satisfaction.

5. Post Purchase Reaction:

This stage is concerned with the consumer's behaviour after consuming the product. This post-
purchase reaction may be favourable or unfavourable. If the customer is happy with the product,

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he will buy it again or recommend it to others. Unhappiness arises from dissatisfaction, which
causes anxiety and restlessness.

A marketer helps the customer in feeling confident about their purchase. After-sale services are
critical in reducing his anxiety about the product because they promote loyalty, increase sales, and
benefit.

1.13 Types of Consumers

Consumers are usually typecast based on their actions, which is increasingly happening online.
The five most popular types of consumers in marketing are listed below.

1. Loyal Customers:

Customers that are loyal to an organization are the foundation. Loyal customers, as the name
suggests, are those who have made a loyalty to your product or service. Your loyal customers are
by far the most likely to produce the bulk of your revenue, even though they make up a small
percentage of your total customer base. They'll also be much more likely to recommend your
company to others.

However, don't make a mistake of taking loyal customers for granted; if your company isn't
fulfilling their needs and desires, they're just as likely as anybody else to move on to fields new.
It's critical to keep this customer base active, engaged, and feeling appreciated by your company.
To keep customers coming back, try to incorporate reward services and interactive social media.

2. Impulse Shoppers:

Impulse shoppers are people who browse goods and services with no intention of making a
purchase. For most retailers, this customer category produces a large amount of sales. This form
of customer is normally open to upselling and has the ability to become a long-term customer if
goods and services meet or meet their standards.

3. Bargain Hunters:

Upselling tactics are unlikely to convince bargain hunters, who are searching for the best deal
possible. In fact, it can drive them away. If it's part of your marketing plan to always give the
lowest possible price points, this type of customer has very little chance of being a loyal customer.

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In addition, this consumer rarely, if ever, makes impulse purchases. The easiest way to connect to
this customer group is to advertise sales.

4. Wandering Consumers:

Although wandering customers are similar to impulse shoppers, they are much less likely to buy
the product. This type of customer is more popular in brick-and-mortar shops, but they do
sometimes turn up at online retailers. It's sometimes possible to sell to people who are just passing
by if you can pique their interest. Keep in mind, however, that many of them are merely drawn to
the social aspect of shopping and have no intention of purchasing anything.

5. Need Based Consumers:

Need-based customers, as the name indicates, are motivated by a desire for a specific product or
service. While these consumers normally make fast and definitive purchases once they find what
they're searching for, they're easily persuaded by competitors. They are, however, often turned into
long-term customers. They frequently have practical questions or issues that a positive social
media presence should answer.

1.14 Buying Motives of consumers

Needs are the core of consumer behaviour. Different types of needs can occur at different times.
Abraham Maslow's need hierarchy divides needs into five categories: critical needs, protection
needs, social needs, self-esteem needs, and self-actualization needs. A individual progresses from
one level of need to the next, fulfilling one need before moving on to the next. It is in response to
this need that the customer displays these patterns of behaviour.

When a need is sufficiently sparked, it transforms into a motivation. “A motive is a sufficiently

stimulated need that moves a person to seek satisfaction,” writes William J. Stanton. He goes on
to say that "when a person seeks gratification through the purchase of something, the motive
becomes the purchasing motive." “Buying motives are those forces or factors that include the urge
to buy, cause action, or decide preference in the purchasing of products or services,” according to
D. J. Durian.

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 Buying motives are consumer motives that have been sufficiently activated to contribute to the
purchasing of a product. There are urgent needs that cause consumers anxiety and restlessness, to
the point where the buyer must expend effort to find a suitable product. The buying motive is a
motivation that can be fulfilled by buying products.

1.15 Types of Buying Motives

Buying motives can be divided into many levels. First, when the customer understands a need and
discusses his reasons for purchasing the commodity (conscious). Second, the buyer is persuaded
that he has a desire to buy but is unable to understand why (sub-conscious), and third, the buyer is
unable to explain the reasons that affect their purchasing decisions (unconscious). Conscious, sub-
conscious, and unconscious motivations are the three types of motives.

Classification of Motives Which is Widely Accepted

1. Product Motives:

Product motivations are those that are connected to the product and encourage the customer to
purchase it. Product motives may be related to a variety of product features.

It can be further classified as:

I. Emotional product motives

II. Rational product motives
III. Operational product motives
IV. Socio-psychological motives

Emotional product motives are those that force a person to buy a product without first analysing
its various features. Love, pride, fear, security, ego, behaviours, and other emotional product
motives are examples. In this case, the buyer is only interested in purchasing the product because
he is emotionally attached to it. Other factors aren't present in this case. There are logical motives,
as compared to irrational motives.

These are the motivations that are concerned with the rational study of the product's different
aspects. The buyer makes a fair assessment of various product attributes in order to assess the

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product's want-satisfying potential, and only then does he purchase it. This category comprises the
product's various utility attributes, such as credit and transportation choices.

Buying motives are defined as operational product motives or socio-psychological product motives
depending on the roles performed and the socio-psychological value offered. The pleasure derived
from the product's function or physical utility is referred to as operational product motives. The
more functions that are performed effectively, and the more functions that are performed, the
higher the chances of a product being purchased.

Operational motives differ from socio-psychological motives. In this case, the customer purchases
the commodity because of its financial value. The commodity is being judged based on its social
standing and reputation. It must meet the buyer's psychological need for a commodity that is
regarded favourably by society.

2. Patronage Motive:

Patronage motivations are the reasons that a customer chooses to shop at a specific store.

Consumers frequently have reasons to purchase items from a certain store only. He is attracted to
that shop because of its success. Emotional patronage motive and objective patronage motive are
two types of patronage motive.

Many times, a customer purchases items from a particular store for reasons that are unclear to
them. Emotional patronage motives are a form of motivation. The justification for purchasing from
that store is solely personal in this case. Each buyer may have his or her own reasons for buying.
Fair patronage motives, on the other hand, are the logical reasons that a buyer has for only
purchasing goods from a specific store.

The customer is aware of the benefits of that shop in terms of a wide range of products, a large
selection, good quality, easy availability, good salesman conduct, after-sales facilities, and so on,
and as a result, he is attached to it. As a result, we can see that motivations have a huge impact on
consumer behaviour. Before going out to draw consumers and grow their loyalty, a marketer
should develop a good understanding of the product and patronage purchasing motives.

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1.16 Importance of Consumer Behaviour

Marketing management is heavily influenced by consumer behaviour. It provides information to

the marketer from which the marketer can plan their marketing mix plans and change them as
needed in the future. In order to serve the customers efficiently, marketers must understand how
they will respond to marketing programs.

1. Modern marketing philosophy:

Consumer desires must be identified and met more efficiently than competitors, according to
modern marketing philosophies. As a result, modern marketing needs an understanding of
customer behaviour.

2. Goal Achievement:

In an extremely competitive marketing environment, the ability to understand and meet consumers'
unfulfilled needs better and faster than competitors is critical to the company's survival,
profitability, and growth. As a result, customer behaviour aids in the achievement of marketing
objectives.

3. Development Of Marketing Programme:

Product, price, promotion, and distribution decisions are all part of a marketing strategy. If the
programme is focused on customer behaviour research, it would be more applicable.

4. Improving Marketing Programme Gradually:

Since consumer behaviour studies consumer reaction patterns on a regular basis, marketers can
quickly learn about market changes. Based on current market trends, the marketer will change the
marketing programme as needed to keep up with the market.

5. Useful for Middlemen:

The study of consumer behaviour assists middlemen and salespeople in performing their duties
efficiently in order to successfully fulfil the needs and wants of customers.

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6. Predicting Market Trend:

Consumer behaviour can also help in trend analysis in the future. As a result, the marketer will
plan ahead of time to take advantage of new opportunities and/or confront challenges and threats.

7. Consumer Differentiation:

Each section requires differentiated products as well as a distinct marketing strategy. Knowing
how to differentiate customers is important for creating different deals that cater to different groups
of consumers. Consumer behaviour research elucidates consumer differences in great detail.

8. Creation and Retention of Consumers:

Marketers who develop their offerings based on customer desires often discover a ready demand
for their goods and find it simple to sell them. As a result of the marketer's continuous analysis of
consumer behaviour and efforts to meet ever-changing buyer preferences, the marketer will keep
its customers for a longer period of time.

9. Competition:

Consumer behaviour research helps marketers in gaining a competitive edge by allowing them to
sell more competitive goods based on consumer preferences. As a result, it helps in the
enhancement of the company's competitive advantages.

10. New Product Development:

A new product is created to meet the needs and desires of the target consumer. Marketers must
have sufficient business awareness in order to produce the best-fit product. As a result,
understanding customer behaviour is essential for successfully producing a new product.

11. Dynamic Nature of Market:

Consumer behaviour is influenced by the market's competitive nature. It enables the marketer to
be more dynamic, alert, and active in order to satisfy customers far more effectively and quickly
than competitors.

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12. Effective Use of Productive Resources:

Customer behaviour research helps marketers in directing organisational resources toward

customer-centric programmes. It ensures that resources are used precisely in order to achieve
optimal performance.

1.17 HIGH INVOLVEMENT AND LOW INVOLVEMENT PRODUCTS

Customers purchase either goods or services. Consumers display different levels of interest when
making such purchases. Buying a home theatre, for example, is an example of a high-involvement
product that reflects the consumer's personality, status, and justifies lifestyle. Low-involvement
products, on the other hand, are those that represent regular purchasing decisions, such as buying
candy or ice cream.

Features of High involvement products

1. High price:

When purchasing a high-priced item, such as a luxury item, customers show a high level of
involvement. A customer shows high involvement when purchasing a Mercedes vehicle, but not
when purchasing a used car.

2. Technical features:

When a customer purchases a product with complicated components, they invest time in becoming
familiar with the product, showing high involvement. Computers, refrigerators, washing machines,
televisions, music systems, automobiles, and DVDs are examples of such items. Product manuals
are provided by manufacturers to help in the comprehension of the product.

3. Major differences between alternatives:

When customers note noticeable differences between alternatives, such as Swiss and Chinese wrist
watches, they become highly interested. Consumers take some time to consider the pros and cons
before making a decision.

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4. Projection of Self:

Some customers are very particular about what they buy; for example, if a customer says that he
only buys branded goods, this suggests that the customer is willing to pay more for the brand in
order to satisfy himself that he is not a standard customer.

The same behaviour can be observed when buying jewellery, cosmetics, perfumes, vehicles,
clothing, restaurants, and other products. Since the consumer's self-image is more important than
the price of the commodity, he pays more on purpose because he is controlled by variety and
money power.

5. Evaluation of Risk:

When there are high risks present, people are more likely to participate. A customer is important
in evaluating risks in order to determine how to reduce or avoid them; for example, hair dyes
contain chemicals. A customer assesses whether or not its use can cause health problems, and, if
so, how to prevent such risks.

Features of Low Involvement Products

1. Brand Hopping:

Some customers aren't loyal to a single company. They go from one brand to the next. When a
new consumer product is launched, they purchase it on a trial basis. When the variations between
brands are limited, brand hopping is normal.

2. Availability of Alternative Brands:

When a customer is faced with similar options within the same product category, they will choose
either brand. In this case, the purchasing process does not take long.

3. Effect on consumer’s self-image:

This problem typically occurs when a customer is purchasing daily-use items; for example, if they
want to purchase Marie biscuits, they will choose Marie by Parle or Marie by Britannia. This is
because it neither shows the consumer's status nor harms their reputation.

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 1.18 Factors Influencing Buying Behaviour

Many different factors affect consumer behaviour. A marketer should learn to understand the
influences on customer behaviour. Here are five significant influences on consumer behaviour.

1. Psychological Factors:

Consumer behaviour is heavily influenced by human psychology. These factors are harder to
specify, but they have enough influence to affect a purchase decision.

Some of the important psychological factors are:

I. Motivation:

When an individual is sufficiently motivated, it has an impact on their purchasing behaviour. A

person's basic needs, social needs, security needs, confidence needs, and self-actualization needs
are only a few. Basic requirements and protection needs take priority over all other needs. As a
result, basic needs and protection needs will drive a customer to purchase goods and services.

II. Perception:

Consumer perception is a significant component of customer behaviour. Customer perception is

the process by which a customer gathers and perceives knowledge about a product in order to
create a meaningful image of that product.

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 A consumer's impression of a product is formed when they see advertising, ads, customer reviews,
social media comments, and so on. As a result, customer understanding has a major impact on
consumer purchasing decisions.

III. Learning:

When an individual purchases a product, he or she gains access to additional information about
the product. Learning occurs over time as a result of experience. Skills and knowledge play a part
in a consumer's learning. Although learning can help you develop your skills, only experience can
help you gain knowledge.

Learning can be conditional or cognitive in nature. Consumers are constantly subjected to a

situation in conditional learning, causing them to create an answer to it.

In cognitive learning, the consumer will apply his understanding and skills to the product he
purchases in order to find satisfaction and a solution.

IV. Attitudes and Beliefs:

Consumers have unique behaviours and values that affect their purchase decisions. The buyer acts
in a certain way against a product based on this attitude. This attitude is very important in
determining a product's brand value. As a result, advertisers work hard to consider customer
attitudes when creating marketing strategies.

2. Social Factors:

Humans are social creatures that are surrounded by a vast number of people who affect their
purchase decisions. Humans tend to compare other humans in order to fit in with society, and they
also want to be socially accepted. As a result, their purchasing decisions are affected by those
around them. They are referred to as social influences. The following are some of the social factors:

I. Family:

A person's purchasing behaviour is heavily influenced by his or her family. A person's tastes are
formed by watching his family purchase products as a kid, and he or she continues to buy the same
products as an adult.

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 II. Reference Groups:

A reference group is a collection of people with whom an individual identifies. In general,

everybody in the comparison group has similar purchasing patterns and influences one another.

III. Role and Status:

The role that an individual plays in society has an impact on him. If an individual is in a high place,
his purchasing decisions are heavily influenced by his status. A Chief Executive Officer of a
company will buy according to his rank, while a worker or employee of the same company will
buy in a different way.

3. Cultural factors:

A collection of beliefs and ideologies that belong to a specific culture are identified with a group
of people. When an individual comes from a specific group, the culture associated with that
community has a strong influence on his or her actions. The following are some cultural factors to
consider:

I. Culture:

Consumer purchasing behaviour is strongly affected by cultural factors. The basic beliefs, desires,
wants, expectations, attitudes, and actions that a customer observes and learns from their close
family members and other significant people around them are referred to as cultural factors.

II. Subculture:

There are several subcultures within a cultural community. These subcultural communities have
similar values and beliefs. People of various faiths, castes, geographies, and nationalities may form
subcultures. These subcultures constitute a consumer group in and of themselves.

III. Social Class:

Every society on the planet has some kind of social class. Income is only one factor that defines
social class; other factors include occupation, family history, schooling, and residence place. The
importance of social status in predicting consumer behaviour cannot be underestimated.

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 4. Personal factors:

Consumers' purchasing decisions are influenced by personal factors. These personal factors vary
from individual to person, resulting in a wide variety of expectations and buying actions. The
following are some of the personal considerations to consider:

I. Age:

The effect of age on purchasing behaviour is important. Young people's purchasing preferences
vary from those of middle-aged people. Elderly people shop in a very different way than younger
people. Teenagers may be more interested in purchasing brightly coloured clothing and cosmetics.
Middle-aged people are worried about their family's home, property, and car.

II. Income:

A person's purchasing behaviour may be affected by their income. Consumers with more money
have more buying power. When a customer has more discretionary income, he or she has more
opportunities to spend on high-end products. Consumers in the low- and middle-income groups,
on the other hand, spend the majority of their income on basics such as groceries and clothing.

III. Occupation:

The consumer's occupation has an effect on their purchasing decisions. A individual is more likely
to purchase items that are related to his or her occupation. A doctor, for example, would dress
appropriately for his occupation, while a professor would dress differently.

IV. Lifestyle:

A person's lifestyle is both an attitude and a way of life in society. The consumer's lifestyle has a
major impact on their purchasing behaviour. When a customer lives a healthier lifestyle, for
example, the items he purchases would be healthy alternatives to fast food.

5. Economic factors:

Consumer purchasing preferences and decisions are heavily influenced by a country's or market's
economic condition. When a country is prosperous, its economy is strong, resulting in a larger
money supply in the market and higher consumer buying power. If buyers are in a good financial
condition, they are more likely to spend money on goods.

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 A poor economy, on the other hand, represents a market that is struggling due to unemployment
and lower buying power. Market purchase decisions are strongly affected by economic factors.
The following are some of the most significant economic factors:

I. Personal Income:

When a person's disposable income grows, his or her buying power rises with it. The money left
over after a person's basic needs have been met is referred to as disposable income.

As one's disposable income rises, one's spending on different goods rises as well. However, when
disposable income decreases, spending on various goods decreases as well.

II. Family Income:

The cumulative wealth of all family members is referred to as family income. As more members
of the family work, there is more money available for basic needs and luxuries. People in a family
with a higher income are more likely to buy more. When a family has extra money, it's natural to
want to purchase more expensive goods that they may not have been able to afford otherwise.

III. Consumer Credit:

When a buyer is given easy credit to buy products, it encourages them to spend more. Credit cards,
quick instalments, bank loans, hire buy, and a number of other credit options are being made
available to customers by sellers. When customers have more credit available to them, they are
more likely to buy comfort and luxury goods.

IV. Liquid Assets:

Consumers with liquid assets are more likely to spend on luxury and luxuries. The term "liquid
assets" refers to assets that can be quickly transformed into cash. Liquid assets include cash on
hand, bank deposits, and shares, to name a few. A consumer's trust in purchasing luxury products
increases as he has more liquid assets.

V. Savings:

The amount of savings a buyer wants to set aside from his profits has a significant impact on his
purchasing decisions. If a buyer decides to invest more, his purchasing spending decreases. If a
buyer wants to save more money, the majority of his profits would go into purchasing goods.

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 CHAPTER 2
RESEARCH METHODOLOGY

2.1 BACKGROUND OF THE STUDY:

For quite some time now, the rise and fall of the advertising industry, either in a boom or recession
period, is dependent on the growth of the economy and this reflects the state of any economy.
Infect, many companies have come to realize that advertising can constitute itself into a position
force in the marketing of their products.

Advertising is, without a doubt, the most significant of all business efforts. It is part of the
businessman's promotional or communication strategy. In a competitive environment like ours, a
manufacturer or seller must depend heavily on ads to present his product or service to prospective
buyers or customers.

Advertising has undoubtedly contributed to the recognition of the business worlds. It connects the
consumer with the manufacturer. Ads, should be noted is a necessary social force for any economy
to take off, and it has affected public taste to such an extent that products that could not be marketed
have fallen out of popularity. Businesspeople who refuse to advertise have been ignored.

A product's advertising aims to not only attract attention or raise awareness of its products, but
also to create and maintain interest, as well as to promote sample or repeat purchases. It is the
function of advertising to understand or communicate the need or desires of the manufacturer in
order to reach the manufacturer's sales goal. In terms of consumer needs, wants, desires,
expectations, and so on, satisfying qualities of products and services are important.

There is no doubt that advertising activities are an important part of a product's marketing strategy.
Organizations are expected to develop a business environment that is focused on selling.
Advertising is worthy of attention because it is becoming increasingly important to many
organizations in terms of mass production and distribution, which has widened the gap between
producers and consumers.

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2.2 OBJECTIVES OF THE STUDY:

The main objectives of the study are presented in the following manner

1. To study the impact of advertising on buying behavior

2. To known what type of advertisements attracts the consumers more.
3. To determine the effect of Brand awareness on consumer buying behavior
4. To identify how the advertisements influence the buying behaviour of the consumers.
5. To learn and understand the concept of an advertisement’s importance in consumer’s mind.

2.3 HYPOTHESIS:

H1: There is a relationship between advertisement and consumer awareness

H0: There is no relationship between advertisement and consumer awareness

H1: There is a significant impact of celebrity endorsement on consumer buying behaviour

H0: There is no impact of celebrity endorsement on consumer buying behaviour

H1: Advertisements has an impact on consumer buying behaviour

H0: Advertisements does not have an impact consumer buying behaviour

2.4 SCOPE OF THE STUDY:

The purpose of the study is to examine the impact of advertising on consumer behaviour. It is well
understood that advertisements are used not only to increase awareness of products and services,
but also to influence buying intensions, product selection and preference. However, the research
will determine whether direct or indirect ads will benefit the organization. It is a fact that all
companies spend a large amount of money on ads in order to create their product and brand in the
marketplace. It’s also crucial for companies to know whether their advertisements are effective or
not. This study will be useful in gaining information about consumer perceptions of advertisements
and their impacts on changing consumer buying behaviour.

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2.5 LIMITATIONS OF THE STUDY:

There is no activity that can be completed without limitations. The main limitations faced during
the preparation of the project are as follows

1. Time available for completion of the project is very short, hence much information could not
be undertaken.
2. Some persons were not that responsive
3. The information collected through primary data. Some of them might not be accurate.
4. Lack of time on part of respondents for filling of the questionnaire.
5. Possibility of error in data collection some of the customers may have not given actual answers
of the questionnaire.
6. The other limitation in this research was limited area as this research comprises only in the
Thane premises.
7. This study concentrates on impact of advertising on buying behaviour of consumers.

2.6 SIGNIFICANCE OF THE STUDY:

The particular research focuses on the impact of advertisement on the buyer’s behaviour. It
explores the factors which are affected by the advertisement and ultimately influence the buying
behaviour of the consumers. The study will help the readers to understand the consumer behaviour
while purchasing a product or using any type of services so that they can devise appropriate
strategy to advertise their products in a best possible way.

The increase in population and consumer purchasing power has generated opportunities and
challenges for advertising companies in the industry. Simultaneously, the fight for customers has
intensified dramatically. The world is shrinking into a small village, and several multinational
companies have enterd India and other nations.

2.7 SELECTION OF THE PROBLEM:

Companies invest a large amount of money in advertising in order to keep their product at the top
of their customers' minds. Advertisement has proved to be an effective tool for communication,

42
but companies are still unsure what ingredients should be included and how these ads can influence
consumer purchasing behaviour.

The study of consumer behavior is very important for the marketers as it enables them to
understand and predict buying behavior of consumers in the market. It is concerned with what they
buy, why they buy, when and where they buy and how often they buy and how do they consume
and dispose them after using them. Consumer research is the methodology used to study consumer
behavior that takes place at every phase of the consumption process such as before the purchase,
during the purchase and after the purchase.

2.8 RESEARCH DESIGN:

A research design is a basic plan which guides the researcher in the collection and analysis of data
required for practicing the research. The research design is the conceptual structure which the
research is conducted. It constitutes the blue print for the collection, measurement and analysis of
data. The study is carried out to understand the study of impact of advertisement on consumer
buying behaviour. For this study the researcher used exploratory research design. The research
covers 100 respondents, belonging to various age groups.

2.9 RESEARCH APPROACH:

The researcher chose quantitative to describe the impact of advertising on consumer buying
behaviour by collecting quantitative data from consumers. quantitative research is the study of
quantitative properties, events and relationships in a scientific and systematic manner. Quantitative
research aims to create and use theories and hypothesis to explain physical events. It typically
begins with a theory or a broad statement that proposes a broad relationship between variables.

2.10 DATA COLLECTION:

Data collection is the method of collecting and analysing data on specific variables in a structured
framework, allowing one to answer critical questions and evaluate outcomes. In all study areas,
including physical and social sciences, humanities, and industry, data collection is an essential part
of the research process. Although the techniques differ depending on the discipline, the focus on
reliable and truthful data collection remains the same. The aim of all data collection is to collect
high-quality information that can be analysed to come up with compelling and credible answers to

43
the questions asked. When taking a census, there are four steps to data collection and validation,
and when sampling, there are seven steps.

The following approach was taken in order to explain the research and recognise the potential of
impact of advertising on consumer buying behaviour: first, the related literature, articles, and
studies were examined in order to gain an in-depth understanding of the relationship between the
two major variables.

Primary data:

Primary data are those which are collected for the first time. Primary data is collected by framing
questionnaires. The questionnaire contained questions which are closed ended. Closed ended
questions are those where the respondent has to check the appropriate answer from a list of
options available. The primary data is collected from the general public who has an idea about
advertisements.

Secondary data:

Secondary data means data that are already available i.e. they refer to the data which have been
collected and analysed by someone and can save both money and time of the researcher.
Secondary data may be available in the form of company records, trade publications, libraries
etc. Secondary data are as follows:

• Company reports
• Textbooks
• Various websites

2.11 SAMPLE SIZE:

A sample design is a structure, or road map, that guides the selection of a survey sample while also
influencing many other important aspects of the survey. In a general sense, survey researchers are
interested in gathering knowledge from a population, or universe, of interest through a survey. A
sampling frame must be established that represents the population of interest and from which a
sample will be taken. The sampling frame could be similar to the population, or it could be just a
portion of it, resulting in some undercoverage, or it could have an indirect relationship to the
population.

44
In this research work, the majority of respondents would be from Mumbai and Thane areas. It
would cater to the opinions of all individuals from young to old focusing mainly on the age
group of 16- 60 years of age. Since, in my opinion, this age group is more important for the
subject. Since the youth are the future of society and will be in control of the business industry in
the coming decades, it is critical to learn about their perspectives and knowledge on the topic.
Since young adults are just starting their careers, it's important to learn about their perspectives
on the topic. The older adults because they have known and experienced life, so they can share
their experiences and perspectives on certain situations. Simple random sampling was used as a
sampling technique. We collected data from a total of 100 people.

2.12 TOOLS AND TECHNIQUES USED:

Quantitative techniques: The analysis tool used to understand the society’s knowledge about the
topic was a questionnaire comprising a minimum of 15 closed questions.

Qualitative techniques: The tools used for analysis of the topic for better understanding of the are
content analysis and reference through various case studies relating to the topic.

45
 CHAPTER 3
REVIEW OF LITERATURE

Advertisement is generally use for creating awareness and promoting products. It is very difficult
to measure how much advertisement attract the customers. In a competitive market, it is important
for advertising managers to grab consumers’ attention through advertisements and sales
promotion. A large number of money is spent on advertising. The trend of using digital media
platforms for advertisements is growing. This chapter intends to explore the importance of various
media advertisements on consumer behaviour stages such as awareness, interest, conviction and
purchase. The objective of this chapter is to find out how much advertisement brings impact on
the consumer’s buying behavior other studies and their findings are given below:

1. Awan et al : explains factors such as the need for advertising, the enjoyment of advertising,
the superiority of advertising, the brand recall of advertising, and the stimulation of
advertising. These are extremely useful in shaping and shifting customer purchasing
behaviour, which is a great sign for advertising and marketing firms. Our findings also
supported the study's model, demonstrating that ads have a direct effect on consumers'
purchasing behaviour and broaden their options. In light of our empirical findings, this
research would undoubtedly be beneficial to marketing and advertising firms in their efforts
to sell their products.

2. Sathya and Indirajith : with socialisation, customer purchasing tastes are increasingly
evolving and shifting towards high-end technology goods. Because of changing lifestyles and
increasing income levels, products that were once considered luxury goods have become
necessities. The demand for high-end items such as televisions, washing machines,
refrigerators, and air conditioners has risen significantly as disposable incomes have
increased. It's also made easier by the widespread availability of credit and the existence of
nuclear families. Increasing demand for consumer durables in the market, resulting in price
reductions, as Indian consumers continue to place a premium on value for money.

46
3. Kumar and Gupta: All marketing begins with the customer, according to the researchers.
As a result, the customer is extremely critical to a marketer. Consumers choose what to buy,
for whom they buy it, why they buy it, where they buy it, and how much they pay for it. To
be a good marketer, one must understand what consumers like and dislike. The analysis of
consumer preference focuses not only on how and why consumers make purchasing decisions,
but also on how and why they choose the products they purchase and how they evaluate those
goods after they have been used.

4. Kalaiselvi and Muruganandam: The consumption patterns of urban and rural households
with comparable incomes vary significantly. Prior to the liberalisation of the Indian economy,
reputable companies such as Godrej, Videocon, Kelvinator, BPL, Voltas, and Allwyn
dominated the Indian white goods industry. Many international companies, such as Whirlpool,
LG, Sony, Samsung, IFB, and Aiwa, entered the market after liberalisation. The white goods
market changed dramatically as a result of this opening.

5. Fatima and Lodhi: revealed that advertisements help companies in creating awareness
among their consumers, and that advertisements affect customers' perceptions in either a
positive or negative way. People may judge the quality of a product by collecting information,
which they typically obtain from advertising. The customer's purchasing decision is
influenced by their perception of quality, product knowledge, and consumer sentiment. The
study critically analyses these variables that influence purchasing decisions and offers in-
depth insights into the role of advertising in influencing consumer behaviour.

6. Johar: Consumer character, behaviour, and attitude are essential dimensions in the decision-
making process, according to the author. A consumer's transactions all follow a similar
decision-making mechanism. A customer is someone who engages in physical activity and
deliberates on purchasing and disposal decisions in order to determine goods and services.
Purchase decision process which is characterized as more complex in its nature, has been
subject to research often, only recently.

47
7. Hemanth Kumar: In order to estimate future trends, marketing personnel are actively
examining patterns of purchasing behaviour and purchase decisions. The study of how, where,
what, and why people purchase is known as consumer behaviour.

8. Adithya: The use of modern technologies and methods resulted in innovative improvements
in the manufacturing of products, according to the researchers. The most important thing is to
anticipate consumer movements and to be ahead of them. Many innovations and
improvements are occurring around us, with all sectors and businesses within each sector
attempting to keep up with the changes and varied needs of the people.

9. Sonkusare: A customer is someone who buys and uses products and services. The aim of
marketing is to meet and fulfil the needs and desires of target customers. The new marketing
concept places the consumer at the forefront of the company's efforts. The aim of marketing
concepts is to meet target and largest buyers, which starts the process of evaluating each of
the target market's conditions. Since television advertising has the ability to combine visual
and audio communication, it is a very powerful tool for communicating a message to its target
audience. As a result, advertisements are an important platform for making people aware of
any goods.

10. Harfoushi and et al: said that the internet is developing into a modern way to shop for a
variety of goods and services. Even so, it is a desire situation for everyone to be able to touch
the items that they want to purchase. However, the Internet is now playing a larger role in
making shopping easier than ever before. Shopping has become much easier thanks to the
internet, and it is now just a click away. The word "online shopping" is used for the first time.
Consumers can buy products or services directly from retailers without having to deal with
any middlemen. The Internet is becoming a significant marketing channel, similar to other
direct marketing outlets such as television and brochures. The Internet allows consumers and
merchants to communicate in both directions. The internet offers an interactive shopping
channel that is not limited by time or place.

11. Sindhya: concluded Although ads often provide information that cuts through all personality
profiles, some customers disregard some of this information and rely solely on advertising

48
 statements and personal experience in making product decisions. Some customers, on the
other hand, wait until the advertisement statements have some credibility before making
product buying decisions.

12. Lahoti and Jacob: revealed that a brand's performance in the Indian rural market is as
unpredictable as the weather. The rural market has always been difficult to predict. Many
brands that should have been popular have been a massive failure. People often attribute
success in rural markets to chance. It became important to research the actions of the rural
population in order to understand the rural market trends, so the study was undertaken.

13. Lamarreand et al: Inferred that creative companies that have successfully incorporated e-
commerce into their marketing activities now see mobile marketing as the next exciting
opportunity to meet their customers through a new communication channel.

14. Amutha and Sulthana: Said that People's attitudes in Chennai have shifted as a result of a
variety of factors, including updated technology, improved status, and the influence of a
reference community, according to the study. Advertising is merely a crucial sales marketing
strategy. According to the study's results, price was a major consideration among lower-
income groups, while brand awareness was one of the most significant influencing factors
among middle-income groups.

15. Zeb and Ashib Concluded that the impact of brand on customer purchasing behaviour is a
hot topic in Coimbatore, and it's important to understand. Clothing, footwear, and other
products such as cosmetics and even furniture are all part of the fashion industry. This study
focuses on the textile industry. When it comes to clothing expenses, age is a bigger factor than
socioeconomic status in determining a woman's budget.

16. Owolabiand et al defined that The effect of advertisement on insurance product sales in Sub-
Saharan Africa was described. Advertising is a traditional marketing technique used by
businesses that operate in a competitive world. There is no other promotional method that can
reach such a huge audience. Advertising has a relatively low cost of reaching out to people.
Furthermore, advertisement can be useful for familiarising customers with goods or
reminding them of their existence; as a result, it is a worthy effort that should be made a core
49
 component of the company's marketing strategy. It was generally accepted that there was a
positive link between advertising spending and insurance product sales, implying that
increasing product advertising leads to increased sales.

17. Tatt derived that shopping is a kind of self-expression in and of itself People's shopping habits
help them identify themselves. A brand is a name, word, sign, logo, or design, or a
combination of these, used to distinguish one seller's or group of sellers' products and services
from those of competitors. A brand faction's job is to raise consumer recognition, credibility,
and prominence, among other things. Both the customer and the company benefit from a
strong brand. Consumer brand associations play an important role in the creation and
management of brand equity.

18. Abayia and Khoshtinat explained that the effect of ads for attracting the customer, when the
individual's mind is engaged with the considered product, positively affects his/her desire to
search for information, so the individual's first action is web browsing. As a result, it is
recommended that companies selling online goods develop marketing strategies that provide
data about the product to consumers at a wide level of the virtual world of knowledge.

19. Halfordand et al described that a lot of evidence suggests that the rates of childhood obesity
is rising. According to the classic inefficiency theory of obesity, obese people are more
affected by external factors than lean people. The impact of watching TV on weight gain
appears to be due, at least in part, to a lack of physical activity rather than the act of watching.
However, television can encourage more than just sleep duration. It has also been shown to
increase food intake. Girls who watch too much television are more likely to overeat,
especially snack foods.

20. GUNJAN BAHETI, 2012 Advertisement is an attempt at creativity that influences a

consumer's desire to purchase a specific product and changes or modifies the consumer's
perception of the product. Advertisement appeal serves as a supplier, appealing to the
consumer's psychological motivation to buy. Advertisement uses both logical and emotional
appeals to persuade consumers to buy something. The product should be focused primarily

50
 on its advantages and issues that it can address in rational appeals, while emotional appeals
satisfy the consumer's psychological, emotional, and social needs.

21. Rafique et al Advertisement, it is argued, is a means of communicating with the public. They
claimed that culture has a significant impact on people's purchasing habits because everyone
has different needs and trends based on their lifestyles. Thus, if we suggest that advertising is
like magic, we are not lying because marketing actually changes people's needs and desires,
and it often generates a need among them (Yasir Rafique, 2012). Advertisements have a big
impact on people, and businesses are seeking to reach out to the masses. Organizations use
above-the-line and below-the-line advertising strategies that are most appropriate for their
products. Researchers have discovered that tv advertisements are the most common
advertisements, and that people enjoy watching television advertisements.

22. Nidhi Kotwal, 2008 Adolescents are strongly attracted to Advertisements, according to a
study conducted in India. Teen girls are often affected by television advertisements, and they
are more likely to purchase items that they have seen in ads. As a result, we can conclude that
mass media has a major effect on advertising. Organizations are shifting their focus to
innovative content that will entice young girls and boys to purchase their goods.

23. Raju, 2013 With the modern era's incredible technological advancements, advertisers are now
considering the number of mass media outlets and modes of communication that provide them
with easy and fast access to consumers. Another benefit of technological innovation is that
consumers already have access to a wealth of knowledge and can choose the product that best
fits their needs. As consumers have more power over goods and details, it becomes
increasingly difficult for advertisers to raise brand awareness and condition customers' minds
to make final buying decisions.

24. Rai, 2013 As previously mentioned, consumer purchasing behaviors are directly influenced
by consumer behaviour and attitude. Many factors come together to form an individual's
actions. The first factor that forms and affects consumer behaviour is his culture. Customers'
strong perceptions of products are shaped by their culture (hye-Shin Kim, 2008). According
to Rai (2013), there are a number of national and foreign brands that people are familiar with

51
 and have a clear mental image of. Because of their history, lifestyle, and surroundings, these
impressions are gently rubbed in their minds. Advertisements also play a significant role in
influencing consumer behaviour. Advertisements are a source of inspiration that force them
to purchase a specific item. Advertisements can also help you create confidence. When a
customer is searching for product quality and costs, he is greatly influenced. Brand assessment
and brand awareness will also help to improve purchase behaviour.

25. Sandra Jakštienė, 2008 Consumers all over the world are attracted to brands and goods that
are emotionally connected to their actions. People prefer to associate themselves with brands,
according to studies, and emotional attachments have a significant impact on consumers and
their purchasing behaviour. Advertisements influence people's attitudes by influencing their
awareness. Knowledge leads to a person's reaction to information conveyed by advertising.
Individuals perceive these beliefs using their senses, vision, attention, memory, reasoning,
language, and other means. Understanding the psychological and cognitive characteristics of
customers is the best way to attract them.

26. Abiodun, 2011 The aim of advertising is to distribute information over long distances. It's
often used to reach a large, dispersed audience. Advertising has a major impact on sales
volume. It has proven to be a crucial tool in increasing brand sales. Advertisement is heavily
linked to product sales.

27. Pope, 2009 Customers' behaviour is influenced by advertisements, and they are encouraged
to purchase those items. Customers are more likely to recall and buy the product if it is
replicated in the advertising, according to the researchers.

28. Priya, Baisya and Sharma, 2010 analyzed The effect of children's attitudes toward television
advertisements on their buying behaviour was studied. According to the findings, children's
attitudes toward advertisements have an effect on the market for the advertised product. The
study also discussed the cognitive changes that occur in various groups of children, resulting
in different attitudes toward advertisements.

29. Wang, sun, lei and Toncar, 2009 examined Chinese consumers' views and attitudes toward
online ads were studied. The study identified a number of belief factors that influence Chinese
52
 consumers' attitudes toward online ads, including entertainment, knowledge searching,
reputation, economy, and value corruption. Attitudes Towards Online Advertising (ATOA)
were found to be a significant positive predictor of advertisement clicking and online
shopping frequency in the study.

30. Shabbir, 2016 In their research, titled "Impact of Advertising on Children's Buying
Behavior," they found that three major dependent variables, namely parents, advertisements,
and peers, influence the pattern of buying behaviour of children. It was also discovered that
all of the variables have varying degrees of influence on consumer behaviour and assist
children in various ways when making buying decisions in the market for various goods and
services.

31. Kalina et al, 2014 They discovered in their research, "the impact of advertising on
compulsive purchasing - the function of influence awareness," that people with higher levels
of influence knowledge have less positive attitudes toward advertising, which can discourage
them from engaging in consumer buying behaviour. In this research, it was discovered that
advertisements could be more successful in order to attract more consumer interest.

32. Malik et.al, 2013 The impact of brand image and marketing on consumer buying behaviour
was studied, and it was discovered that advertisements have a strong positive influence and a
significant relationship with consumer buying behaviour. It's also worth noting that the public
responds positively to an appropriate brand image. Teenagers were also found to be more
mindful of their social standing in society and to favour advertised goods.

33. Prabakaran, 2012 In his research on the ‘impact of advertising on consumer buying
behaviour,' he discovered that advertising has a positive impact on customer buying
behaviour, but that not all ads are impressive, comprehensible, eye-catching, exclusive, or
creative. It was also noted that advertisements for the society should be fitting, influential,
and understandable.

34. Bishnoi and Sharma, 2009 In their research on ‘the impact of television ads on buying
behaviour: A comparative study of urban and rural teenagers,' they discovered that rural
teenagers are more affected by television advertising than their urban counterparts.
53
 Furthermore, it has been discovered that television advertising is successful in boosting their
interest in product selection and purchasing decisions. Customers were also given priority in
acquiring and experimenting with the most recent items available on the market, according to
the report. In comparison to their urban counterparts, rural adolescents mutually determine
with their family unit which goods and services to buy as a result of exposure to advertising
on television. If they do not have an urgent need for the marketed items, urban adolescents
are not willing to purchase them. Only those advertisements in which the quality of the goods
and services is expected appeal to urban teenagers. It is also concluded that there is a
difference in perceptions of demand for goods among rural and urban adolescents, which is
affected by television advertising. Furthermore, the study found that male teens are more
affected by television commercials than their female counterparts when it comes to purchasing
decisions.
35. Mandan, Hossein & Furuzandeh, 2013 One of the key requirements for making an
advertising has been entertainment. Consumers' interest is gained by the use of entertainment.
Consumers are more likely to recall an interesting and exciting advertisement than a dull one.
As a result, it is possible to claim that entertainment improves the efficacy of advertisement.
As a result, many businesses spend a significant amount of money on humorous
advertisements.

36. Belch & Belch, 2001 This is logically dependent on the celebrity's honesty when it comes to
what he or she says about the brand. This is because people believe almost all celebrities say
because they believe celebrities would not want to be associated with fake goods because it
would damage their image.

37. Shimp, 2007 According to the study, celebrity similarity relates to the way to which a
celebrity endorser of a brand suits the target audiences of advertisements in terms of age,
gender, ethnicity, and other characteristics. Consumers are thought to like and rely on
messages from celebrity endorsers of brands that share these characteristics. When a celebrity
endorser and their customers have common needs, objectives, interests, lifestyles, and so on,
the celebrity endorser is more valuable in the eyes of the customers.

54
38. Erdogan, 1999 Marketers consider celebrities in ads to be a magnet that draws customers to
the brand through glamour. It accounts for a huge percentage of the marketing budget.
Celebrities are well-known people who stand out from the crowd due to their beauty and
credibility.

39. Rai and Sharma, 2013 It concentrates on its own requirements. It employs persuasion to
persuade customers to buy a marketed brand or product. It thrives on instilling the ad in the
mind of the user in an imaginative and repetitive manner. Celebrity-based advertisements
strive for ad recall and brand appeal when communicating their contents. Endorser plays a
key role in the latter scheme by drawing the customer's attention to himself and the
advertisement. Then, advertising is used to promote both the endorser's image and his or her
brand. For leading corporations and luxury brands, enlisting celebrities for advertisements has
become standard procedure.

40. Kietzmann et al, 2011 suggest that content sharing on social media platforms is influenced
by two factors: the discovery of existing content that users share and the discovery of new
content that appeals to users' interests. Consumers' needs are met by product review videos
on YouTube, which provide them with information that enhances audience participation and
generates interest in the video's content.

41. Dellarocas, 2003 observed that the ability to monitor the information that is shared and
influence the aggregation of it on online review systems gives system moderators the power
to influence user views about the content that is shared. The ability of YouTube content
creators to design product review videos in order to monitor the information that is shared has
given them control over the information that is shared as well as the manner in which it is
shared. As a result, content creators would be able to generate audience interest in their videos.

42. Strauss & Frost Because of the exponential growth of the internet and its limitless
possibilities, social media has quickly become one of the most effective marketing tools for
businesses. The word "social networking" is used to describe media that is focused on online
engagement, dialogue, and content sharing. Multimedia sharing, networking and interactive
tools, social bookmarking and other partnerships, entertainment, and thoughts and reviews

55
 are all examples of social media. It focuses on delivering content to people who want to be
entertained and educated. Since users can share, comment on, and rate each other's content,
the content is created in the manner of a conversation between online users.

43. Voramontri & Klieb, 2018 As opposed to those who used other information sources, such
as television, radio, newspapers, etc., social media users considered decision-making to be
simpler and appreciated the process more. Through listening in and engaging in online
discussions, social media has allowed marketers to reach and track customer views on a
continuous, real-time basis.

44. Mukhaini, 2014 The impact of social media on consumer buying behaviour was studied.
With the aim of determining which types of goods are most commonly purchased using social
media by Oman's consumers. According to the findings, Instagram is the best social media
platform for Omani consumers looking to purchase their favourite product (fashion) online.

45. Putter, 2017 concludes that the use of user generated content, which is produced by users in
response to specific brands and affects the perception of other consumers, is becoming a
growing target of marketers. Things like other people's opinions, as seen in social media posts,
can affect brand awareness and purchase intent.

46. Kirti, 2019 A study conducted to understand the impact of social site advertising on customer
purchasing behaviour discovered that social networking sites display a diverse range of
goods/products with new brands available in the market. They also have information on the
various labels of various items. Many comments and suggestions about the desired items can
be found on social media platforms. As a result, consumers have access to critical information
about various brands' products.

47. Gulzar & Maqbool, 2018 highlights the benefits that businesses reap from successful social
media advertising. They discovered that social media advertising is more about producing
high-quality, consumer-relevant content that is more focused on developing relationships
between customers and businesses. Consumers have benefited greatly from the accessibility
and transparency of relevant information provided by social media advertising. Consumer
attitudes and purchasing intentions are influenced by social media.
56
48. Chitranshi Verma, 2018 In the Indian context, the impact of social media on consumer
behaviour was studied. She comes to the conclusion that customers want brands to look out
for them and society as a whole. Customers like it when businesses respond directly to them,
and social media makes this possible. Customers nowadays rely heavily on social media
networks for customer service and support, so businesses can make themselves visible in the
digital media to provide this assistance.

49. Rob Fitzgerald, 2019 Consumers are 71 percent more likely to make a purchase based on
social media recommendations, and social media influences 475 of youth purchases,
according to his research on the effect of social media on consumer purchasing behaviour.
They're also 1.6 times more likely to hear about new products across digital platforms.

50. Jefkins, 1973 stated that advertisement sends the most convincing selling message to the
target audience for the least amount of money for the goods and services. It is a technique
used by advertisers to raise public awareness about a company's products and the needs of its
consumers.

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 CHAPTER 4
DATA ANALYSIS, INTERPRETATION AND PRESENTATION

4.1 DATA ANALYSIS AND PRESENTATION

The above pie chart indicates the gender of the respondents which vary from
ANSWER RESPONDENTS PERCENTAGE
MALE 56 55.4%
FEMALE 45 44.6%
OTHER 0 -

The above pie chart shows that 55.4% are male respondents and 44.6% are female respondents

58
 ANSWER RESPONDENTS PERCENTAGE
BELOW 18 9 8.9%
18 - 25 76 75.2%
26 - 35 7 6.9%
36 - 44 5 5%
45 AND ABOVE 4 4%

• It can be observed that a majority of the population which totals up to 75.2% of the total
population (76 respondents) are between 18-25 years of age.
• 8.9% of the population (9 respondents) are of the age group of below 18.
• While 6.9% of the population (7 respondents) comprises of the age group between 26-35 years.
• 5% (5 respondents) fall in the age group of 36-44 years.
• 4% (4 respondents) fall in the age group of 45 and above

59
The above graph shows what the respondents feel, is it important to advertise in order to attract
customers
ANSWER RESPONDENTS PERCENTAGE
AGREE 87 86.1%
DISAGREE 4 4%
NEUTRAL 10 9.9

• 87 respondents that is (86.1%) agreed that advertisements are necessary to attract the
consumers.
• 4 respondents that is (4%) disagreed that advertisements are not necessary to attract the
consumers.
• 10 respondents that is (9.9%) felt neutral they feel advertisements can or cannot be necessary
to attract the consumers.

60
 The above graphs shows what the respondents feel does advertisements makes a impact on
buying decision of the consumers.

ANSWER RESPONDENTS PERCENTAGE

YES 81 80.2%
NO 6 5.9%
MAY BE 14 13.9%

• 81 respondents that is (80.2%) felt advertisements plays a significant impact on buying

decision of the consumers
• 6 respondents that is (5.9%) felt advertisements does not plays a significant impact on buying
decisions of the consumers
• 14 respondents that is (13.9%) felt advertisements may play a significant impact on buying
decision of the consumers.

61
The above graphs shows what respondents think without ads, no product can survive in this
competitive market.

ANSWER RESPONDENTS PERCENTAGE

AGREE 56 55.4%
DISAGREE 19 18.8%
NEUTRAL 26 25.7%

• 56 respondents that is (55.4%) feel that product can’t survive without advertisements.
• 19 respondents that is (18.8%) feel that product can survive without advertisements.
• 26 respondents that is (25.7%) feel neutral that product may or may not survive without
advertisements.

62
The above graph shows who influences the consumer to make a purchasing decision. The question
has the option to select multiple answers

ANSWER RESPONDENTS PERCENTAGE

ADVERTISEMENTS 69 68.3%
FAMILY 53 52.5%
FRIENDS 47 46.5%
OTHERS 18 17.8%

• 68.3% of the respondents are influenced by the advertisements to make a purchase decision
that is 69 respondents
• 52.5% of the respondents are influenced by the family members to make a purchase decision
that is 53 respondents
• 46.5% of the respondents are influenced by the friends to make a purchase decision that is 47
respondents
• 17.8% of the respondents are influenced by the other factors to make a purchase decision that
is 18 respondents

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The above graph shows which means of advertisement influences the consumer to make a
purchasing decision. The question has the option to select multiple answers.

ANSWERS RESPONDENTS PERCENTAGE

NEWS PAPER 21 20.8%
TELIVISION 56 55.4%
SOCIAL MEDIA 80 79.2%
YOUTUBE 41 40.6%
DISPLAY 27 26.7%
ADVERTISING

• 79.2% of the respondents are influenced by the social media advertisements to make a purchase
decision that is 80 respondents
• 55.4% of the respondents are influenced by the Television ads to make a purchase decision
that is 56 respondents.
• 40.6% of the respondents are influenced by the youtube advertising to make a purchase
decision that is 41 respondents
• 26.7% of the respondents are influenced by the display advertising to make a purchase decision
that is 27 respondents
• 20.8% of the respondents are influenced by the news paper ads to make a purchase decision
that is 21 respondents

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The above graph shows what respondents feel about advertisement is it an unnecessary activity

ANSWER RESPONDENTS PERCENTAGE

AGREE 22 21.8%
DISAGREE 62 61.4%
NEUTRAL 17 16.8%

• 62 respondents that is (61.4%) feel that advertisement is an necessary activity

• 22 respondents that is (21.8%) feel that advertisements is an unnecessary activity
• 17 respondents that is (16.8%) feel neutral that advertisement is an unnecessary activity

65
The above graph shows that what respondents feel is advertisement useful for moving from one
brand to another?

ANSWER RESPONDENTS PERCENTAGE

YES 55 54.5%
NO 12 11.9%
MAYBE 34 33.7%

• 55 respondents that is (54.5%) feel that advertisement helps to move from one brand to another
• 12 respondents that is (11.9%) feel that advertisement doesn’t help to move from one brand to
another
• 34 respondents that is (33.7) feel that advertisement may help to move from one brand to
another

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The above graph shows does the advertisement encourage the respondents to purchase a product

ANSWER RESPONDENTS PERCENTAGE

YES 59 58.4%
NO 11 10.9%
MAYBE 31 30.7%

• 59 respondents that is (58.4%) feel that advertisement attracts the respondents to purchase a
product
• 11 respondents that is (10.9%) feel that advertisement doesn’t attract the respondents to
purchase a product
• 31 respondents that is (30.7%) feel that advertisement may attract the respondents to purchase
a product

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The above graph shows that what respondents think Is it easy for children to be influenced by
advertisements?

ANSWER RESPONDENTS PERCENTAGE

AGREE 86 85.1%
DISAGREE 4 4%
NEUTRAL 11 10.9%

• 86 respondents that is (85.1%) feel that children get easily influenced by advertisement
• 4 respondents that is (4%) feel that children doesn’t get influenced by advertisement
• 11 respondents that is (10.9%) feel neutral that children get influenced by advertisement

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The above graph shows that what respondents feel about advertisements whether they make
consumers aware of certain products and services

ANSWER RESPONDENTS PERCENTAGE

AGREE 81 80.2%
DISAGREE 20 19.8%

• 81 respondents that is (80.2%) feel that advertisements make consumers aware of certain
products and services
• 20 respondents that is (19.8%) feel that advertisements doesn’t make consumers aware of
certain products and services

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The above graph shows that does the respondents get attracted to buy a product which is endorsed
by their favourite celebrity

ANSWERS RESPONDENTS PERCENTAGE

YES 44 43.6%
NO 57 56.4%

• 44 respondents that is (43.6%) feel that respondents get attracted to buy a product which is
endorsed by their favourite celebrity
• 57 respondents that is (56.4%) feel that respondents doesn’t get attracted to buy a product
which is endorsed by their favourite celebrity

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The above graph shows that how often does the respondents get influenced by advertisement

ANSWER RESPONDENTS PERCENTAGE

RARELY 23 22.8%
SOMETIMES 60 59.4%
OFTEN 13 12.9%
NEVER 5 5%

• 60 respondents that is (59.4%) of the respondents sometimes get influenced by advertisement

• 23 respondents that is (22.8%) of the respondents rarely gets influenced by advertisements
• 13 respondents that is (12.9%) of the respondents often gets influenced by advertisements
• 5 respondents that is (5%) of the respondents never gets influenced by advertisements

71
The above graph shows what are the advertisement factors that influences the respondents to make
a purchase decision. The question has the option to select multiple answers

ANSWER RESPONDENTS PERCENTAGE

ATTRACTIVENESS 55 54.5%
INFORMATIVENESS 70 69.3%
PRICING 67 66.3%
BRAND 21 20.8%
AMBASSADORS
OTHERS 14 13.9%

• 55 respondents that is (54.5%) of the respondents sees attractiveness as their advertisement

factor which influences them to make a purchase decision
• 70 respondents that is (69.3%) of the respondents sees informativeness as their advertisement
factor which influences them to make a purchase decision
• 67 respondents that is (66.3%) of the respondents sees pricing as their advertisement factor
which influences them to make a purchase decision
• 21 respondents that is (20.8%) of the respondents sees brand ambassadors as their
advertisement factors which influences them to make a purchase decision
• 14 respondents that is (13.9%) of the respondents sees other factors which influences them to
make a purchase decision

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The above graph shows do the advertisement convince the respondents to buy the same brand

ANSWER RESPONDENTS PERCENTAGE

AGREE 46 45.5%
DISAGREE 15 14.9%
NEUTRAL 40 39.6%

• 46 respondents that is (45.5%) of the respondents feel that advertisement convince them to buy
the same brand
• 15 respondents that is (14.9%) of the respondents feel that advertisement doesn’t convince
them to buy the same brand
• 40 respondents that is (39.6%) of the respondents feel neutral that advertisement may or may
not convince them to buy the same brand

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The above graph shows do the respondents have purchased any product after coming across any
advertisement

ANSWER RESPONDENTS PERCENTAGE

YES 85 84.2%
NO 16 15.8%

• 85 respondents that is (84.2%) of the respondents have purchased a product after coming
across an advertisement
• 16 respondents that is (15.8%) of the respondents haven’t purchased a product after coming
across an advertisement

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4.2 DATA INTERPRETATION

• Upon gathering and reviewing primary data from a specified collection of queries, it can be
found that the majority of the respondents have positive impact of advertisements on consumer
buying behaviour
• When consumers see a product advertised elsewhere, they are more likely to purchase it; they
also feel safer buying a product, where they have seen the advertisement before
• Among the four factors who influences to make purchase decision, advertisements has a
significant impact
• Among the type of advertising Social media advertising influences more to make a purchase
decision as most of the respondents were from the age group 18 – 25, the respondents were
young people who uses social media a lot this could be the main reason that influences social
media advertising a lot to make a purchase decision.
• According to the data the main factor that influences the buying decision is informativeness
The aim of advertising is to inform the potential consumers about the product. Advertisements
informs consumers about a product's features and uses. Product information is also required
especially when the product is introduced in the market. This may be the reason why
informativeness was selected by majority of the respondents.

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 CHAPTER 5
5.1 CONCLUSION
Through the survey conducted it can be confirmed that the hypothesis- Advertisements has an
impact on consumer buying behaviour stands true and right as because of the responses received
from the majority of the respondents, as most of the respondents agreed that advertisements has
an impact in their buying behaviour

All the data collected and all the research conducted it can be concluded and proved that
Advertising has changed our life so much. Our life has become more convenient because of
Advertisements, it is a very useful for us in 21st century, it could help us to improve our life.
advertisements has become a powerful platform for marketing due to the high brand exposure and
great return on investment. Advertising has positive effects on your business. It offers an
opportunity for the public to find businesses. The biggest effect of advertising is that you can reach
to your targeted consumers. A high percentage, as high as 90%, of marketers claim that advertising
has huge effect on their brand. Hence, advertising has become a substantial portion of every
marketing strategy. Being visible on many type of advertisements will help businesses to connect
with more audience.

The current era has seen a revolutionary shift in marketing trends. Online marketing saves us time
and money, and it also allows us to choose from a wide range of products. Since the product is not
available for regular inspections, advertisements are the only means of attracting customers.
Advertising plays an important part in shaping consumer purchasing decisions. Advertising should
be genuine, accurate, and satisfy consumers' informational needs. Companies should use attractive
and informative content to raise customer awareness, rather than relying on advertisements to
change people's perceptions. Instead, they should use innovative methods of sales marketing or
other mediums to change people's perceptions. It would be simple for every business to improve
consumer purchasing behaviour by raising awareness and creating a strong impression in their
consumers' minds.

The project concludes on the basis of survey and the secondary research done. The survey fulfils
the objective of the research and the research helps us to know more and gives details of the
impacts of advertisements on consumer buying behaviour.

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5.2 SUGGESTIONS

The findings show that there is no major relationship between age and level of impact, indicating
that the impact of advertising is consistent among different age groups. As a result, it is suggested
that one effective advertising is sufficient to influence consumers in their age group.

• It has been found that advertisements only reveal the product's positive qualities, and since the
product is not physically accessible, the advertising can also reveal some of the product's
disadvantages. It will assist the customer in making better decisions.
• Consumers are willing to switch brands, so it is recommended that promotional schemes
should be provided frequently.
• When creating marketing messages/ads, it is important to keep track of the consumer's buying
habits.
• The advertisement messages must be clear so that the common consumers can also understand
them
• Social media has a major impact. Nowadays, using social media to promote a product or
service is a very effective way to increase sales.
• One of the ways to keeping your customers loyal to your brand is to establish an emotional
connection with them.

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 BIBLIOGRAPHY
https://economictimes.indiatimes.com/definition/advertising
https://www.oberlo.in/ecommerce-wiki/advertising
https://www.marketing91.com/types-of-advertising/
https://kalyan-city.blogspot.com/2013/01/importance-of-advertising-why.html
https://www.businessmanagementideas.com/advertising-2/advertising-definition-nature-
features-objectives-types-importance-and-examples/18882
https://www.sendiancreations.com/benefits-of-effective-advertisements/
https://www.yourarticlelibrary.com/advertising/5-important-disadvantages-of-
advertising/1110
https://adacado.com/blog/the-importance-of-creative-in-advertising/
https://www.yourarticlelibrary.com/marketing/market-segmentation/consumer-behaviour-
meaningdefinition-and-nature-of-consumer-behaviour/32301
https://www.businessmanagementideas.com/consumer-behavior/consumer-buying-
behaviour/20969
https://www.demandjump.com/blog/types-of-consumers-in-marketing
https://www.businessmanagementideas.com/consumer-behavior/importance-and-
significance-of-studying-consumer-behaviour/21013
https://www.yourarticlelibrary.com/marketing/high-involvement-products-and-low-
involvement-products-involvement-difference/32299
https://clootrack.com/knowledge_base/major-factors-influencing-consumer-behavior/
https://uniprojects.net/project-materials/effects-of-advertising-on-consumer-buying-
behaviour/
https://ijac.org.uk/the-impact-of-advertising-on-consumers-buying-behaviour/
http://www.ijmsbr.com/Volume%204%20Issue%2010%20Paper%2011.pdf
https://www.businessmanagementideas.com/consumer-behavior/consumer-behaviour-
meaning-process-types-buying-motives-and-factors-marketing/17980
https://www.theseus.fi/bitstream/handle/10024/132972/Lepisto_Emmi_Julia_Vahajylkka_Mi
ina.pdf?sequence=1
https://www.ijert.org/social-media-and-consumer-buying-behaviour-issues-challenges
https://www.ijrte.org/wp-content/uploads/papers/v8i4/D9293118419.pdf

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 ANNEXURE

SURVEY ON IMPACT OF ADVERTISING ON CONSUMER BUYING BEHAVIOUR

This is a small survey form to know about the impact of advertising on consumer buying
behaviour. The survey also aims to get a clear idea of the consumers whether advertisements have
an impact or not in their buying behaviour.

1. NAME

2. GENDER
• MALE
• FEMALE
• OTHERS

3. AGE
• BELOW 18
• 18 – 25
• 26 – 35
• 36 – 44
• 45 AND ABOVE

4. Is advertisements necessary to attract the consumers

• Agree
• Disagree
• Neutral

5. According to you does advertisements makes a significant impact on buying decisions of the
consumers
• Yes
• No
• Maybe

79
6. In this competition market any product can’t survive without advertisements
• Agree
• Disagree
• Neutral

7. Who influences you to make a purchasing decision

• Advertisements
• Family
• Friends
• Others

8. Which means of advertisements influences you to make a purchasing decision

• Newspaper
• Television
• Social media
• Youtube
• Display Advertising

9. Is advertisements an unnecessary activity

• Agree
• Disagree
• Neutral

10. Do advertisements help you to move from one brand to another

• Yes
• No
• Maybe

11. Do advertisement attract you to buy a certain product

• Yes

80
 • No
• Maybe

12. Do children easily gets influenced by watching an advertisement

• Agree
• Disagree
• Neutral

13. Do advertisements make consumers aware of certain product or service

• Agree
• Disagree

14. Do you get attracted to buy a product which is endorsed by your favouriate celebrity
• Yes
• No

15. How often do you get influenced by advertisements

• Rarely
• Sometimes
• Often
• Never

16. What are the advertisement factors that influence your buying decision
• Attractiveness
• Informativeness
• Pricing
• Brand ambassadors
• Others

17. Does advertisement convince you to buy the same brand

81
• Agree
• Disagree
• Neutral

18. Have you purchased any product after coming across any advertisement
• Yes
• No

82