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Effect of Advertisement on Consumer Behavior

Research · March 2019

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International Journal of Management, Technology And Engineering ISSN NO : 2249-7455

Effect of Advertisement on Consumer Behavior

Kushagra Pal1, Tushar Pal2
1
Department of Information Technology SVKM’S NMIMS University,
Vile Parle (West), Mumbai, India.
2
MBA (Marketing),B.Tech(Computer Science) SVKM’S NMIMS University,
Vile Parle (West), Mumbai, India

Abstract
Advertisement plays an important role in business. Advertisements are used to introduce a
business, establish a brand and position a company, product or service within the eyes of
the purchaser against the other established competitive businesses. The study seeks to
examine the effects of advertisement on consumer buying behavior. The sample for study
chosen was 100. A questionnaire was comprehensively prepared to determine the
advertisement effectiveness on consumer’s behavior. The result shows that advertising is
very useful to create the awareness among consumers but they are unsuccessful to build
powerful perceptions in consumer's mind. Two variables such as consumer perceptions
and brand awareness about a particular product will persuade and influence the
consumer to buy a product, as there is a positive relation exist between two of them.

Keywords: Advertisement, Consumers, Online Advertisements, Business

1. Introduction

Businesses uses advertisement as a tool to promote their products and services.

Advertisements forms a perception of a product in consumer’s mind. The utilization of
advertisements has remarkably increased in the 20th Century due to expansion in
industrialization the supply of processed and fabricated products.

In Company’s marketing exercise, businesses can choose the best advertising strategy, by
making use of expertise, science and experience concerning suitable and proper methods,
according to customer tendency for making purchases. In Business world marketing.

We believe that the research will provide helpful insights for both executives and
advertising scholars to understand the detailed and facts of advertising to help marketers
in suggesting acceptable proposals to advertising.

2. Literature Review
Many studies have examined the efficacy of advertising in the past. Now a day’s many
advertisement techniques are present and used by businesses to promote their product and
services. Advertisement techniques have significantly changed from last decades with the
advancement of technology online and mobile advertisements have been successful to
reach the targeted audience.

(Dr. D.Prasanna Kumar 2012) found that Advertisements are the powerful means of
communication media to convey the information to the target group of customers. He
further added that advertisements should neither be too long nor be too short.
Advertisements should be able to attract customer’s attention to involve in the
advertisement. (Ali Hassan 2015) found that there is a positive relationship of emotional
response between consumers buying behavior and Television Advertisements. It was
found that television advertisements impact on behavior of consumers is related to

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International Journal of Management, Technology And Engineering ISSN NO : 2249-7455

residential backgrounds whether urban or rural and gender groups. Advertisements on

television have a significant impact on the trial of the services or product by the
customers. (Srivastava Priyanka 2012) found that all internet users irrespective of age
have the same perception concerning the website or online advertisements. All age group
people agreed that the online advertisements are very informative, but at the same time
these advertisements creates irritation among all age group people.

3. Research Methodology

Questionnaire was used for conducting survey among 100 consumers (65- males, 35-
females). Google form was used for designing the questionnaire. Questionnaire was sent
to various consumers through email, WhatsApp, Facebook etc. and their response was
recorded. Graphical presentation has also been derived from the google forms.

4. Data Analysis
4.1. Influence of advertisements

Advertisements influence the consumer’s perception and buying behaviors. Using

advertisements businesses try to reach the targeted and potential consumers. Every
business pays a hefty amount to advertise its products and services and every business try
to reach the maximum targeted audience as well. Before advertising the products business
conducts research of the consumer base as to know what type of advertisement will
influence its targeted audience.

Graph 1 shows that 34% of the consumers have large influence, 40% have medium
influence 22% have small influence whereas 4% were not sure about the influence
of advertisement on their buying behavior.

4.2. Advertisement as a tool to provide information.

Advertisements delivers helpful data to consumers that informs them about services and
product selection or choices, as well as comparing benefits, features and prices. With
proper information consumers and businesses often choose to purchase additional services
and products.

Advertisements provide benefits to the seller as well as consumer. Sellers can do

promotion of their services and goods through ads. On the contrary, consumers can have
the knowledge of discount deals and goods available at the market place, which helps
them to take the correct decision among various alternatives present in the market.

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International Journal of Management, Technology And Engineering ISSN NO : 2249-7455

Graph 2 shows that 87% of the consumers agrees and 13% of the consumers
Disagrees for the statement that “Advertising is beneficial to consumers because it
provides important information about goods and services.”

4.3. Kinds of Ads people love

Consumers always look advertisements for product and price information. Every
advertisement is unique in itself some looks for deals and some looks for their favorite
celebrity.
Consumers were asked “What do you look out for in an advertisement?” In which
multiple choices could be selected.

Graph 3 shows that 55% of consumers chooses a brand that they are familiar with and
trust. 65% of consumers search for Product information in advertisement. 77% of
consumers search for Price information in advertisement. 81% of consumers looks for
Discounts and deals and 21% of consumers looks for Celebrities and famous people.

4.4. Online Advertisements.

Online advertisements is one of the most useful and effective way in today’s world for
businesses to find new customers, increase their reach and to increase their gains and
income. Paid search – also known as pay-per-click advertising (PPC) and Paid Social –
are most commonly used advertising techniques.
Consumers were asked “Do you pay attention to online advertising?” In which multiple
choices could be selected.

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International Journal of Management, Technology And Engineering ISSN NO : 2249-7455

Graph 4 shows that 40% of consumers pays attention to online advertisements whereas
7% of consumers do not pays attention to online advertisements there is still 69% of
consumers who sometimes pays attention to online advertisements.

4.5. Advertisement a cause of Unnecessary Purchases.

Advertisement is very much connected with psychological factors giving them a next
level hope of improving their lifestyle. We start going after our desires even when our
need is fulfilled and this is where advertisements are coming off indirectly encouraging
our desires to overwhelm and make the demand.

Consumers were asked “Consumers can often become victims to advertising through the
purchase of unnecessary items.” In which multiple choices could be selected.

Graph 5 shows that 21% of the consumers strongly Disagrees with the statement 60%
Agrees with the statement and 23% of the consumer Disagrees.

4.6. Mere Exposure effect as a clever strategy in advertising.

Mere exposure effect plays an important role in marketing a product or services. It creates
a preference for a product in consumers mind over other products due to regular
advertisement to consumer. Consumer tends to develop a sense of familiarity and trust for
the brand if its advertisements are popping up everywhere. Consumer ultimately buys the
product.

Consumers were asked “The more times an advertisement is viewed by a consumer, the
more likely the consumer is to go and buy the product.”

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International Journal of Management, Technology And Engineering ISSN NO : 2249-7455

Graph 6 shows that 31% of the consumers Agrees with the statement 28% Disagrees with
the statement and 41% of the consumer were not sure about their opinion.

4.7. Mode of receiving Advertisements.

There are many modes of advertisements available in the marketing industry but each
much be wisely chosen in order to reach the targeted audience.

Consumers were asked “Preferred mode of receiving advertisements” In which multiple

choices could be selected.

Graph 7 shows that 21% of consumers chosen Print Media. 45% of consumers chosen
TV. 54% of consumers chosen Mobile. 53% of consumers chosen Internet. 50% of
consumers chosen all options as preferred mode of receiving advertisements.

4.8. Going with new brands.

Advertisements are meant to produce brand image, consumer perception about products
and services and to promote new goods and services. In order to establish a brand image a
business spends a hefty amount in promotion of its products thus making a sense of trust
in consumers mind.

Consumers were asked “Do you purchase products of new brand after watching
advertisement?”

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Graph 8 shows that 76% of consumer’s purchases products of new brands whereas 24%
of consumers choose to purchase the products of the brand they are familiar with.

5. Summary and Conclusion

5.1. Restatement of the Problem

To study the effect of advertisement on consumer buying behavior.

5.2. Major Findings

We have found out the following major findings:

1) 87% of the consumers believe that advertisement provides information about goods
and services.
2) 81% of the consumer search for discount and deals is advertisement whereas 77 %
search for price information.
3) 60% of the consumers agreed that advertisement causes unnecessary purchases to them
which could be due to mere exposure effect.
4) Most preferred mode of advertisement nowadays is mobile and internet.

5.3. Conclusion

This study was based on advertisement effect on consumer’s behavior. Various variable
were considered such as online advertising, familiarity with product, brand image, mode
of advertisement during the study. It was found that advertisement plays a very crucial
role to promote businesses goods and services. Advertisement has a significant influence
on consumer buying behavior. Consumer behavior is significantly driven by discount and
deals followed by price and product information. This study could be helpful to marketers
to determine the correct way to reach maximum consumers to promote their services and
products.

5.4. Limitation of Study

The scope of the research conducted was limited as the data was collected from the
consumers majority of them was of age group 18-25 and are netizens.

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International Journal of Management, Technology And Engineering ISSN NO : 2249-7455

5.5. Scope for future research

Future research would involve advertisement effect on consumers divided into different
age groups and what type of advertisements do consumers like – humorous, informative,
relatable etc.
Future research would also involve effect on advertisement on urban and rural consumer’s
behavior.

References
[1] Dr. D.Prasanna Kumar& K. Venkateswara Raju ,“The Role of Advertising in Consumer Decision
Making” ,IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-
7668. Volume 14, Issue 4 (Nov. - Dec. 2013).
[2] Ali Hassan, “Effects of TV Advertisement on Consumer Buying Behavior: A Comparative Study of
Rural-Urban and Male-Female Consumers”, International Journal of Innovation and Applied Studies
ISSN 2028-9324 Vol. 11 No. 3 Jun. 2015.
[3] Srivastava Priyanka “A STUDY ON IMPACT OF ONLINE ADVERTISING ON CONSUMER
BEHAVIOR (WITH SPECIAL REFERENCE TO E-MAILS)” I.J.E.M.S., VOL.3 (4) 2012: 461-465.
[4] Amrita Dhaliwal, “Effect of Advertisement on Consumer Buying Behavior”, IJSRM volume 4 issue 09
September 2016.
[5] Gitanjali Kalia, Dr. Ashutosh Mishra ,“Effects of online Advertising on Consumers” , OSR Journal Of
Humanities And Social Science (IOSR-JHSS) Volume 21, Issue 9, Ver. 1 (Sep. 2016).
[6] Gaurav Bakshi , Surender Kumar Gupta, “ONLINE ADVERTISING AND ITS IMPACT ON
CONSUMER BUYING BEHAVIOR” ,International Journal of Research in Finance & Marketing
Volume 3, Issue 1 (February 2013).

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