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RESEARCH PAPER

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IMPACTS OF ADVERTISEMENT ON CONSUMER BUYING BEHAVIOR

OF GRADE 12 STUDENTS OF SAN NICOLAS NATIONAL

 HIGH SCHOOL SY 2019-2020

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CHAPTER I

INTRODUCTION

Background of the Study

Consumers are final end user of products. They keep the production cycle moving.

Consumers do play a vital role in the economic system of any nation, thus, any nation will face

crisis if consumers don’t have the effective demand for goods produced Consumers are known

to be rational with regard to their purchases, wanting to maximize their satisfaction when it

comes to consumer goods. Consumer buying behavior is mostly affected by some factors which

include culture, family and brand image. On the other hand, brand awareness also helps the

customer to buy a certain product. Advertising is usually a paid form of exposure or promotion

 by some sponsor that reaches through various traditional media such as television, newspaper,

commercial radio advertisement, magazine mail, outdoor advertising or modern media such as

 blogs, websites and text messages (Ahmed & Ashfaq, 2013).

Marketers have always adapted to changing business demands when it comes to

creating new advertisements. The use of advertisements has significantly increased in the

20th Century as industrialization expanded the supply of manufactured products. However, not

many businesses practiced advertising at the time. During the late 80s advertisements were

fairly limited to television, radio, billboards and newspapers. In the modern times, businesses

are leaning towards Digital Advertising. Companies are so focused in social media and mobile

advertisements that they may take over Television advertisement very soon.

Advertisement helps the company to create the awareness in their customers and

ingredients the advertisements shape the perception of the customers either in the positive or

in a negative way. People can perceive the quality of the products by gathering the information

which they usually get through advertisements. The perception of the quality, awareness of the

 product and consumer opinion drives the consumer buying decision. 

This particular study focuses on the advertisement and various spending of

advertisements on different factors of consumer buying behavior. Advertisers spend much

amount of investment while advertising their product so they keep their focus on these factors

so that they can influence consumer mind with advertisements.

This study critically evaluates the factors which shape the buying behavior and provides

the deep insights towards the role of advertisements shaping the consumer behavior.

Statement of the Problem

This study helps to determine the impacts of advertisement on consumer’s buying of

Grade 12 students of San Nicolas National High School for the school year 2019-2020. Most

especially, it seeks to find the answers to the following questions.

1.  How does advertisement create awareness in consumers?

2.  Do advertisements build perceptions in the mind of consumers?

3.  Does consumer awareness and perception affect their buying behavior?

Theoretical Framework

Conceptual Framework
Consumer
Awareness

Consumer
Advertising Buying
Behavior
Consumer
Perception

In the proposed framework, it clearly examines the impact of advertisement on the

consumer buying behavior. The advertisement has the direct impact on the consumer. It creates

the awareness in the consumer thus motivate them to buy the product. Along with that,

advertisement also build the positive or negative perception. The framework identifies the

impact of advertisements on customer awareness and perception which leads towards the

 buying decision of the consumer. It tells the factors which can influence on the consumer

 buying behavior and it helps keeping in mind the factors of awareness and perception which

will ultimately fulfill the needs of consumer and enhance their desire and motivate them to

 purchase a specific product.

Hypotheses

Three hypotheses have been developed in this research study.

H0: There is no relationship between advertisement and consumer awareness

H1: There is a relationship between advertisement and consumer awareness

H0: There is a relationship between advertisement and consumer perception

H2: There is a relationship between advertisement and consumer perception

H0: Consumer awareness and consumer perception have no impact on buying behavior

H3: Consumer awareness and consumer perception have impact on buying behavior

Significance of the Study

This particular research focuses on the impact of advertisement on the consumers

 buying behavior of Grade 12 students in San Nicolas National High School for the school year

2019-2020. The findings of this study will play a vital role to the following:

Business Owners. The study will help the business owners to understand the consumer

 behavior and to know the appropriate strategy to advertise their product in a best possible way.

Community. This study will portray what every business will do to attract more

customers.

Customers. ??????

Future Researchers. This study will serve as their reference for their future papers. It

will also serve as their guide to conduct their study and to be more knowledgeable about the

topic.

Scope and Delimitation

This study will cover 30 Grade 12 randomly selected students of San Nicolas National

High School for the school year 2019-2020. The extent will be based on the data obtained by

questionnaires to be distributed.

This study is limited to Grade 12 students of San Nicolas National High School for the

2nd Semester only.

Definition of Terms

Advertisement. It is an announcement online, or in a newspaper, on television, or on a

 poster about something such as a product, event, or job.

Awareness. It is the ability to directly know and perceive, to feel, or to be cognizant of

events. 

Behavior. The way a person behaves or acts; conduct; manners.  

Consumer. A person who buys things or uses services.  

Perception. It is the process of getting, interpreting, selecting, and organizing sensory

information. It includes the collection of data from sense organs through to the interpretation

made by the brain. 

CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

Local Literature

Capturing Filipino Consumers

Advertising

The changes in media landscape also change the way consumers access information

about products and services. Television remains an essential part of Filipinos’ everyday lives,

which is why they rely on commercials for product information. These advertisements also

greatly affect the product preference of Filipino consumers. Respondents of the Nielsen Global

Consumer survey from the Philippines said that commercials increased their brand preference

(78%), as the image created by these commercials influenced their decision to buy said

 products. 

Celebrity endorsements also play an important role when it comes to influencing brand

 preference. Companies use these spokespersons to deliver their advertising message and to

 boost their brand image. Marketing studies have reported that famous people increase

awareness of a company’s advertising and create positive feelings towards brands. 

One of the local companies that approached celebrities is Cherry Mobile. After

eventually getting them as stable endorsers, they have experienced a boost in sales of the

smartphones. The reason behind this, according to Julius Guevara, Colliers Philippines

associate director for advisory and research, is because Filipinos “are very conscious of

celebrities and they find affinity with the celebrity.” A celebrity’s appearance, popularity, and

relatability are the measures on how big the impact of their endorsement could influence a

consumer’s decision on buying their endorsed brand. 

Advertising on the Internet also plays a key role in advertising. 10% of the consumers

ranked social media posting, 9% for active internet searching, 6% for internet advertisements,

and 4% for Internet forum or message board as key influencers. According to Stuart Jamieson,

 Nielsen’s Managing Director in the Philippines, there is a “rising reliance” on social media

 postings, active Internet searching, and Internet forum, wherein consumers can learn more

about the product, and read about the reviews of other consumers like them.

 Nielsen said savvy marketers who are able to inject these in their product development

can count on Filipino consumers to be their ambassadors among their family and friends offline

or online. The Nielsen report on Global New Product Innovation revealed affordability as the

key driver of new product purchase for Filipino consumers, followed by convenience and

 personal recommendation from family and friends, and experts (14%).

Foreign Literature

Entertainment 

Entertainment has been one of the primary criteria for creating an advertisement.

Entertainment is used as a tool to gain attention of customers. An interesting and entertaining

ad is more likely to be remembered by consumers rather than a boring one. Therefore, it can

 be said that entertainment increases the effectiveness of advertising. That is why many

companies are investing a lot of money to make advertisements that are humorous (Mandan,

Hossein & Furuzandeh, 2013).

Former studies suggest that entertainment in advertising generates customer

satisfaction (Chang, 2014). This claim was tested by later empirical studies. For instance,

Duncan and Nelson (2011) conducted a research on how entertainment in advertisement affects

consumers. They analysed 157 responses towards advertising and found that entertaining

advertisements can influence consumers. It influences consumers into accepting and

consuming the product (Duncan & Nelson, 2011). In a similar way, Chang (2014) investigated

about entertaining advertisements and its influence on consumer satisfaction and leave impact

on their behavioral intentions. Based on his research on 152 participants, he found that

entertaining advertising can positively increase consumers’ satisfaction, thus influencing

consumer buying behavior.

Although use of humor in advertisements can be risky at times as a large number of

 people may not be entertained by the same concept. Gulas and Weinberger in their book say

that a failed attempt to entertaining ads is a lost opportunity to connect with consumers. It may

even offend consumers and drive them away. They have exemplified this risk with a 1999

Super Bowl advertisement for ‘Just for Feet’. It showed a group of white men tracking a

 barefoot, black Kenyan runner who was later drugged and forced against his will to wear a pair

of running shoes (p. 174). The advertisement was met with massive outrage (Gulas &

Weinberg, 2012).

However, entertaining advertisements do not necessarily mean humorous ads.

Thrilling, full of suspense advertisements can also be counted as entertaining. One of the

 biggest examples of all time is the Apple super bowl commercial “1984”. It left people

awestruck and it was immediately able to get attention of people. It was very effective in terms

of spreading news about a new era of computers. It also had a huge part in generating sales for

the company.

Harvard professor Teixeira has conducted an interesting study on this regard and wrote

a paper “Why, When and How much to entertain consumers in advertisements?” The study is

 based on a facial tracking study (software used to track the facial emotions) in response to the

TVCs. This is a first of its kind study and is the latest (Teixeira, Picard & Kaliouby, 2013).

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