Business Research & Intelligence by Ali Bukhari 1

EFFECTS OF ADVERTISMENT ON CONSUMER BUYING BEHAVIOR

WITH REFERENCE TO FMCG IN LAHORE CITY

SALMAN ASIM (S2020054053)

SOBAN GHANI (S20200540

IMRAN KHALID (S20200540

ALI HASSAN (S20200540

MUHAMMAD ABDULLAH (S2020054018)

SHEHERYAR AHMED (S20200540

SANAN SULEMAN (S20200540

UNIVERSITY OF MANAGEMENT & TECHNOLOGY

Autor Note

This study is conducted by the students of University of Management and Technology on

the effects of advertisement on consumer buying behavior on Tea (FMCG) products in

the city of Lahore. It is based on the already-researched articles on the topic and our

analysis about advertisements of Tea products in the city of Lahore.

Business Research & Intelligence by Ali Bukhari 2

Abstract

This investigation on how advertisements affect customer purchasing decisions for

FMCG goods in the city of Lahore is being carried out by students at the University of

Management and Technology. It is based on previous study on the subject and our

examination of FMCG product advertisements in the city of Lahore. In Lahore

marketplaces, advertising, point of sale, and family influences are the three main

determinants of customer behavior. , the low income consumers prefers non-branded low

quality tea and the consumer behavior depends on income, education, consumer loyalty,

taste, quality, and lastly advertisement.

Business Research & Intelligence by Ali Bukhari 3

INTRODUCTION

People of Lahore are conscious about their status and are willing to spend money to show their

status symbol. Brands are utilizing these factors in their advertisement campaigns to boost their

sales by targeting a specific audience. Consumer Buying Behavior depends upon various factors

like income, culture, brand image and market share of products depending upon awareness of

consumers. To generate awareness among consumers, organizations spend huge amount of

money into their advertisement campaigns.

According to a research by Asia Naseem, the low income consumers prefers non-branded low

quality tea and the consumer behavior depends on income, education, consumer loyalty, taste,

quality, and lastly advertisement

Pakistan has a low per capita income and irregular government policies which makes

complications for brands to operate in the market. The consumers of Lahore due to heavy taxes

and inflation has less buying power as compared to the past but FMCG products are performing

higher sales due to increasing population of the city. A strong advertisement campaign of FMCG

products can boost sales and revenue because the consumer are attracted through the message

and graphical aspects making the consumer aware about the products.

Keywords: Advertisment, Tea, Consumer Buying Behavior, FMCG , Lahore

Literature Review

The advertiser plays a major role in the consumer buying behavior and marketer use

strategies to deliver their products according to the needs and wants. The factors that

plays a crucial role is the customer satisfaction and loyalty. (Khan Zaman, 2012).
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Kuuisk (2007) says that there is a direct connection between satisfaction and customer

loyalty. According to Luarn and Lin (2003) , brands which makes their customer

satisfied with their products gains long term loyalty and commitment. Solomon (2004)

says that consumers who likes the advertisement is more likely to buy that

product. .Russell and Lane (1996) that concluded that organizations knows the magic,

advertisments play and invest a large sum of money in their campaigns. As per the budget

documents, Pakistan has consumed 83.3 billion worth of tea in the fiscal year 2021-22.

Awan and Arif (2015) stated that celebrity endorsement of FMCG products attracts more

customers. Oh & Xu (2003) thinks that the mass media is responsible for the branded

FMCG products purchases and adaption of behaviors is through the use of mass media.

Some authors suggested that Pakistani market is unpredictable and the consumer buying

behavior is different than other developed countries. Although the economic situation

affects buying power but the fact that Pakistan is one of the largest consumer of Tea

makes brands hunger to capture that market. Barroso, A. (2008) says that when the

customer is aware about the product through advertisement campaigns , that resulted in

the increasing sales of the product. Moreover Weilbacher et al (2003) thinks that

advertisments adds value to the product and consumer perception about the product. A

research conducted showed that Pakistani Consumers prefer strong tea which resulted in

Tapal importing different types of strong tea leaves that resulted in the domination of

their brand (Tapal Danedar & Tez Dum) overtaking other preferred brands. Kacen et al

(2002) says that e-commerce is providing consumers so many purchases opportunities by

which consumers have multiples options but their satisfaction and loyalty factors plays a

major role. Abideen and Saleem (2011) says that the flow of advertisments in the city of
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Lahore is constantly changing the consumer buying behavior. Malik et al. (2013) thinks

that online advertisement is mainly responsible to target the educated consumers in the

city of Lahore. Michael ET al.(1997) says that low cost FMCG products are purchased

repeatedly that results in loyal and satisfied customers which prefers one brands and are

reluctant to change . Tea is the favorite Pakistani beverage , it is cheap and refreshing

which targets the poor as well as the rich in the country. Nathan Omer (2018) says that

Pakistan consume two types of tea, branded and non-branded smuggled tea. Tapal is the

major contributor to the imported branded tea but still there is potential for new entrants

int the market. Sun and Wu (2004) explored that the urban areas are more brand concious

but the financial status affect their purchase. . Erdem et al. (2008) thinks that due to the

advertisement of the product, the consumers are more likely to purchases by visual

representation and satisfaction of the product. Guadagni and Little (1983) says that

although price is major factor in the consumer buying behavior but brand loyalty often

results in the consumer being less price-sensitive. Golub and Binkley (2005) suggested

that consumer prefer branded products because they do not trust the quality of the non-

branded products. Nathan Omer (2018) suggests that the poor economical conditons

force the consumer to buy low quality tea but consumer who have a decent income tend

to buy branded tea. Although these factors affects the brands but Taste, Quality, Price,

Customer Loyalty and Satisfaction plays are major role in the purchase of Tea in the City.

Research Objective:

 To understand and comprehend the meaning and concept of an advertising, as well as its
significance in the minds of consumers.
 What function does advertising have in shaping a consumer's thinking and influencing
their purchasing decisions for Tea in Lahore?
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 How do these advertisements influence Lahore consumers' purchase of FMCGs?

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References

Rasool , M.S , Rafique, Y. , Naseem M.A, Javaid, S. , Najeeb, M , Hanan, M. (2012) Research

Article IMPACT OF ADVERTISEMENT ON CONSUMER BEHAVIOR OF FMCG IN

LAHORE CITY

MALIK, M.E (2013) Impact of Brand Image and Advertisement on Consumer Buying Behavior

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Dwivedi, H. N (1999) Production of Tea in India, Kolkata.

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