RESEARCH PAPER ON THE POWER OF ADVERTISING ON CONSUMER

BEHAVIOR

SUBMITTED BY NAZIFA TASNIM SUBMITTED TO NIGAR SULTANA

ID: 2111040 SCHOOL OF BUSINESS (SB)

Course; MBA507 INDEPENDENT UNIVERSITY, BANGLADESH (IUB)

DATE OF SUBMISSION: 27TH NOVEMBER 2021

Table of Contents
Letter of Transmittal ............................................................................................................................... 2
Acknowledgement .................................................................................................................................. 3
Executive Summary ................................................................................................................................ 4
Introduction ............................................................................................................................................. 4
Objective of the study ......................................................................................................................... 5
Limitations .......................................................................................................................................... 5
Literature review ..................................................................................................................................... 5
Methodology ........................................................................................................................................... 8
Results and discussion ............................................................................................................................ 8
Data Presentation and Analysis .......................................................................................................... 8
Conclusion ............................................................................................................................................ 11
Recommendation .................................................................................................................................. 12
Reference .............................................................................................................................................. 13
THE POWER OF ADVERTISING ON CONSUMER BEHAVIOR

Letter of Transmittal

27th November, 2021

Nigar Sultana

Lecturer

Independent University, Bangladesh

Subject: Submitting a research report on “The power of advertising on consumer behavior”.

Ma’am,

I would like to thank you for giving me the opportunity of doing this report. This paper has been
prepared to fulfill the requirement of the course. In accordance to your advice, I have prepared a
report on the power of advertising on consumer behavior. While preparing this report, I have followed
all your guidelines. I think that it will help me a lot in my future career.

I sincerely hope that, this report will fulfill the requirements provided by you. I will highly appreciate
your comment or any kind of suggestion regarding this report.

Sincerely Yours,

Nazifa Tasnim

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Acknowledgement

First of all, I would like to thank Almighty Allah for the blessings that always helped me to reach my
goals and create more opportunities. Secondly, I would particularly like to show my gratitude to my
honorable Instructor Nigar Sultana for giving me the opportunity to have his vicinity and allowing me
to submit my report on the power of advertising on consumer behavior. Any omission in this brief
acknowledgement does not mean lack of gratitude.

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Executive Summary
Advertising has been a matter of debate for decades, although it was not as influential as it is now
until the twentieth century. The purpose of advertising tactics is to gain attention to a product,
establish a long-term relationship with customers, or ensure that consumers remember their product.
Anyone who buys and uses things is referred to as a consumer. The study of why individuals buy
items is known as consumer behavior. The current study's goal is to determine the influence of
advertisements on customer behavioral patterns, as well as to discover and evaluate what makes them
effective. How advertisements affect the mindset of people. This research can help firms figure out
what motivates a consumer ’s behavioral intent. Consumers have different desires depending on their
unique preferences. This research can help firms figure out what triggers a customer's purchase intent.
They have the power to determine which components of advertising are more effective and which
have less impact. The data backed up the study's hypothesis, indicating that advertising has a
significant impact on customer behavior and expands their possibilities. The majority of respondents
saw advertising as a promotional technique that can persuade customers to buy their items, with sales
promotion being the primary role of advertising to attract them.

Introduction
Advertising is a method of communication that aims to persuade viewers to buy a product or service
by providing information and encouraging them to do so. It is regarded as a critical and necessary
component for the marketers' and businesses' economic progress. (Haider & Shakib,2007 as cited
Ryans, 1996). Advertising has been a topic of discussion for generations, but it was not as significant
as it is now until the twentieth century. The goal of advertising methods is to draw attention to a
product, assuring a long-term connection with customers, or to ensure that consumers keep in mind
their product. In the late 1980s, advertisements were constrained to television, radio, billboards, and
newspapers. In present era, businesses are increasingly relying on digital advertising. Organizations
are relying on social networks and digital advertising that it's possible that they'll soon replace
television commercials.

A consumer is anyone who purchases and utilizes goods. Consumer behavior is the study of why
people buy things. What entices their curiosity? What influences their decision to choose one product
over another? Why is it that one product dies and another rises to take its place? Consumers are
interested in things for gift giving, necessity, entertainment, social status, social proof, and comfort.
Toilet paper, for example, is an essential need. However, a high-priced brand of toilet paper that
claims softness is also a source of comfort. As a consequence, toilet paper may be both a need and a
luxury.

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Consumers desire various goods based on their personal preferences. Consumers' awareness of a good
impacts their purchase of that good. Psychological and environmental variables also impact one's taste
and choice for a commodity. Over time, taste and choice for a pleasant change. As an outcome,
commercials have a role in determining customer taste and preference.

The paper argues that the impact of advertisement in consumers behavior and attitude is powerful.
When a customer sees an advertising for a brand and develops a fondness for it, he or she is more
likely to purchase it. The primary goal of advertising is to generate a good attitude about the
commercial and the brand until the customer buys the product and this positive attitude produces
emotional reactions in the consumer's head. (Manandhar,2018 as cited Goldsmith & Lafferty, 2002)

Objective of the study

Broad objectives: The major goal of the study is to assess the power of advertising on customers'
minds and behavior.

Specific objectives: Specifically, the study shall make an attempt to answer the following questions:

• To investigate the link between advertising and consumer purchasing behavior.

• To analyze the impact of advertisement on customer behavior.
• To provide a critical analysis of the consumer's perception of advertising

Limitations
There are some limitations that can be addressed for the paper to be completed. First, there is a
shortage of access to relevant data for research purposes. Next, because of the less time during the
survey, the sample size may have been wider if we had access to a wider range of people. Finally, this
study may have included a more diverse set of variables to examine the same issue from a new angle.

Literature review
Advertising is one of the marketing strategies that focuses on attempting to influence a particular
group of individuals by interacting with specific messages that impact their behavior in order to
convince them to make a specific decision, such as deciding to purchase a new product. Therefore,
advertising is any way that is communicated with any individuals in order to persuade them of a
particular matter, until they make the decision that the advertiser needs for a return or a benefit to be
achieved. (Tabie, 2021). Advertisement is quite important in the workplace since it is one of the
primary media methods utilized by various firms to communicate with their target audience and
consumers. Advertisements for a product or service are run with the goal of raising awareness among
target audiences, as this is the primary emphasis of marketers. (Tabie, 2021 as cited Ur Rehman,
Nawaz, Khan & Hyder 2014) [Rowley 1998; Broeckelmann 2010].

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Advertisement is crucially significant in the creation and development of a product or service.

Whether you like it or not, it has now become a prerequisite for everyone in daily existence, whether
you are a developer, a merchant, or a consumer. How can you deliver an attractive product that can
solve issues without using advertisements? The use of celebrity endorsement in media advertisement
attracts the customers. [Awan, 2016, as cited Awan and Arif (2015)].

Acebron et al. (2000) did a study on customer purchasing behavior. The study's goal was to examine
the effect of prior experience on fresh food purchasing behavior. The authors employed a conceptual
model in their investigations to determine the interaction between habits and past history on customer
behavior. In the context of fresh food, their results indicate that consumers' personal habits and prior
experience have a direct influence on their buying behavior. They also discovered that the product's
appearance has a significant impact on the buying preferences, decision of the consumer and further
recommended that the product image should continuously be improved in order to encourage the
consumers towards purchasing.

According to Awan (2016), Haug (2003) researched the interaction between advertising and mobile
services; the client is not just the user, but also a stakeholder (partner). Concentrate on two aspects of
client behavior: (1) the flow of the encounter and (2) overall happiness.

Patterson as cited Jasperson and Yun (2007) discovered in a recent study that advertising can
influence voting preferences, however it was less significant than word of mouth. (Jasperson and Yun,
2007, p1122). Furthermore, several studies indicate that advertising strategies have evolved over the
previous fifty years or so, shifting from advertising efforts centered on political problems to
campaigns centered on enhancing public image. (Patterson as cited Diamond and Bates, 1988; Boiney
and Paletz, 1991). A multitude of advertising efforts have been launched to highlight particular
concerns, such as underage drinking (For example, the 'Drink Aware' campaign is frequently led by
the government.) Patterson as cited Austin et al. (2006) suggests that there are relationships between
successful advertising campaigns and young people's drinking habits, which they ascribe in part to
mediated reference groups. They state that “if children admire a mediated reference group such as
models in an advertisement, they will tend to expect that imitating the models’ behaviors will bring
positive results” (Austin et al, 2006, p376). Given the vast range of elements impacting a customer's
skepticism and susceptibility, including certain instinctive reactions, it may be claimed that a
consumer does not have complete choice over how they respond to advertising (Bargh, 2002, p280).
However, it is critical to examine the consumer's perception of how they respond to advertising.
Gender is used to emphasize one facet of how customers perceive their vulnerability in the next
section. Using social role theory, Eagly and Steffen (1984) propose that males who are taught to be
dominant and aggressive generally see themselves as having a high level of self-control.
Advertisements, in general, have an impact on how we see the world around us. Various forms of ads,

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particularly television commercials, depict how a consumer of a certain product is or should be. It
may occasionally reveal the socioeconomic status of a product's consumer, as well as their lifestyle
and opinions. This principle is especially significant in the case of beauty products. According to a
2009 study, one of the most important notions conveyed by the media is society's view of beauty and
attractiveness. Everywhere we look, we see skinny, gorgeous women and handsome, strong males.
And as the media's power grows, so does the pressure to adhere to these standards. [Haider & Shakib
(2007) as cited Russello, (2009)]. Aside from the beauty business, another excellent example of a
societal image generated completely by advertising is the company "Rolex." It is neither the best
device on the market, nor does it offer much utility to one's life in this day and age of cell phones.
However, via strategic ad placements, they have captured the attention of millions of people. They
have targeted elite athletes and club members and depicted them in their commercials. They have
defined how an ideal consumer of their product lives, where they reside, where they hang out, and so
on. In a manner, they have given a subliminal message to the public that 'Rolex' is solely for the
wealthy and smart, and that it is what distinguishes a person from the ordinary. Rolex is now more of
a social status symbol than a timepiece. As a result, someone who has suddenly become wealthy
might want to buy a Rolex merely to feel like they are part of the 'exclusive' class. According to Tech
Times, even Apple's smart watch, which has a lot of features, couldn't compete with Rolex. “Apple
may be the numerouno smart watch seller in the world and while it can revel in the fact that it thwarts
its wearable rivals such as Samsung, Sony and LG in this sphere, the Cupertino-based company is
still not a shine on Swiss watchmaker Rolex, which is synonymous with luxury”. (Haider and Shakib,
2007). People nowadays have access to an infinite quantity of commercials. However, they are
looking for something new, engaging, and able to capture their attention. Boring advertisement will
not last long in the eyes of customers. As a result, entertainment has been identified as an important
advertising approach for enhancing advertising effectiveness and persuading consumers to make a
purchase [Haider & Shakib (2007) as cited Madden & Weinberger, 1982)]. Ad’s impact individual
life styles and the amount to which an individual wants to display himself or herself in a socially
acceptable manner, as evidenced by social role and image. Ads promote image and lifestyle as well as
items and services. Ads inform consumers about new ways of living, images, and trends [Haider &
Shakib (2007) as cited Pollay & Mittal, 1993; Burns, (2003)]. Advertising promotes social messages
and lifestyles by showing the ideal consumer's position and stimulating social action toward the
purchase of that goods.

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Methodology
The current study aims to identify the impact of advertisement on consumer behavior and attitude,
identify and analyze what makes them powerful. How advertisement having effects on the mind of
consumers. The study is descriptive. The study's data set is made up of material gathered mostly
through desktop research, as well as quantitative and qualitative data. Exploratory, quantitative and
qualitative research methods will be used to analyze this research. Qualitative research methods are
used to uncover customer behavior patterns. Secondary data has been collected from Online reports,
previous research, journals, magazines, news portal, articles. Primary data was generated by online
survey. A structured questionnaire was prepared to do the survey which has been distributed through
online to the diverse group. The questionnaire included few questions related to the study.

Results and discussion

In this article, a total of 100 respondents took part in the survey. The questionnaire was created to
investigate the influence of advertising on consumer behavior.

Data Presentation and Analysis

• The first question was - Do you think advertising required to attract customers?

53.8% respondent were strongly agreed that advertising is required to attract consumers. 42.3%
agreed in this question, 1% was neutral and rest 1% strongly disagreed with the question.

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• The second question was- Do you buy products when you feel they are necessary?

In this question 30.8% strongly agreed that they buy products when they feel they are necessary.
51.9% agreed in the question. 13.9% answered neutral, 1.9% disagreed and rest of the 1.9% strongly
disagreed.

• The third question was- Do you ever buy a product after watching an advertising for it?

15.5% strongly agreed in this question that they buy a product after watching an advertising for it.
50% agreed to the question. 28.8% was neutral, rest of the 5.8% disagreed.

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• The fourth question was- Do you agree that advertising has an impact on customer
preferences?

In this question 13.5% agreed that advertising has an impact on customer preferences. Majority of the
respondents agreed (59.6%) to the question. 15.4% strongly disagreed, 1.9% disagreed and 9.6%
answered neutral.

• The fifth question was- Do you mostly purchase continuously advertised product?

In the answer of this question 32.7% answered neutral, 26.9% agreed, 9.6% agreed, 25% disagreed,
and rest of other 5.8% strongly disagreed.

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• Finally, the last question was- Do you think advertising is a source of amusement and
pleasure?

53..8% agreed that advertising is a source of amusement and pleasure an 17.3% strongly agreed to the
question. 19.2% was neutral. 7.7% strongly disagreed and 1.9% disagreed that advertising is a source
of amusement and pleasure.

Conclusion
The study represents that if consumer behavior is effected by the influence of advertisement. Factors
such as the significance of advertisement, the amusement of advertisement, the popularity of
advertisement, and the anticipation of advertisement are all factors. A well-executed and well-initiated
advertisement would be capable of boosting the desire or expectation of customers without really
necessitating its purchase. This study can assist businesses identify what prompts a consumer's buy
intent. They can decide which aspects of advertising are more successful and which have a negligible
influence. The findings also supported the study's concept, which indicated that advertising have a
major influence on consumer behavior and broaden their options. Most of the respondents have taken
advertising as promotional tools that can convince the customers towards the products and Sales
promotion is taken as the key function of advertisement to attract them. Finally, it can be stated that
advertising should be created in such a manner that they may capture the attention of the viewers,
raise interest in the promoted goods, develop interest in the consumer, and prompt them to act on the
goods.

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Recommendation
Advertising should be honest, truthful, and suit consumers' informational demands. Companies should
employ appealing and relevant material to raise customer awareness, rather than depending on
advertisements to change people's perceptions. Instead, they could use innovative methods of sales
promotion or other media to change people's perceptions. It has been discovered that advertisements
only disclose the advertisement's positive aspects of the items, and because the product is not
physically present, the advertisement may also expose some of the products' downsides. It will assist
the customer in making better decisions. More emphasis should be placed on emotion-related
advertising because customers' purchasing decisions are heavily influenced by their emotions. To
capture the attention of potential consumer, an innovative approach to advertising should be used.

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