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IMPACT OF TV ADVERTISEMENT ON CONSUMER BUYING BEHAVIOR

Topic IMPACT OF TV ADVERTISEMENT ON CONSUMER BUYING

BEHAVIOR Abstract:
Measuring the influence of Advertisement in Consumer Brand Preference is very essential for every marketer. If advertisement does not create any positive change in consumers brand preference, all the resources such as money, time and efforts spent on advertisement will go in vain. Most of the marketers use Advertisement as a tool to attract substantially new customers and to retain the existing customers. This research studies about the IMPACT OF TV ADVERTISEMENT ON CONSUMER BUYING BEHAVIOR . Every Brand in this market use Advertisement as a major weapon to overcome the fierce Competition. There are numerous Advertisements of different brands exposed in Television. But, the main thing here is, the marketer want to identify that, do all these advertisements positively influencing the consumers brand preference. In order to study the influence of Advertisement in Consumer Brand Preference, three main variables are considered with appropriate dimensions. They are; Information, Communication and Comprehension. The structured questionnaire was used to collect primary data from 500 respondents. The study found that all three variables indicate high influence of Advertisement in consumer brand preference. Even though it has high influence in overall view, the advertiser wants to consider the indicators, which have low and moderate influence in their future developments of the Advertisements to maintain its position in the market in the long-run. Eventually, this study recommends some actions for improving the influence of Advertisement in consumer brand preference

Key Word
Consumer , Information and communication

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Introduction and Background


The essence of being in business by any business outfits is to produce for sales and profits. In order to remain in business an organization must generate enough sales from its products cover operating costs and post reasonable profits. For many organizations, sales estimate is the starting point in budgeting or profit planning. It is so because it must be determined, in most cases, before production units could be arrived at while production units will in turn affect material purchases. However, taking decision on sales is the most difficult tasks facing many business executives. This is because it is difficult to predict, estimate or determine with accuracy, potential customers demands as they are uncontrollable factors external to an organization. Considering, therefore, the importance of sales on business survival and the connection between customers and sales, it is expedient for organizations to engage in programmers that can influence consumers decision to purchase its products. This is where advertising and brand management are relevant. Advertising is a subset of promotion mix which is one of the 4ps in the marketing mix i.e product, price, place and promotion. As a promotional strategy, advertising serve as a major tool in creating product awareness and condition the mind of a potential consumer to take eventual purchase decision Advertising, sales promotion and public relations are mass-communication tools available to marketers. As its name suggests, mass communication uses the same message for everyone in an audience. The mass communication tools trade off the advantage of personal selling, the opportunity to tailor a message to each prospect, for the advantage of reaching many people at a lower cost per person (Etzel et al., 1997). Today, definitions of advertising abound. We might define it as communication process, a marketing process, an economic and social process, a public relations process or an information and persuasion process (Arens, 1996). Dunn et al. (1978) viewed advertising from its functional perspectives, hence they define it as a paid, non-personal communication through various media by business firms, non-profit organization, and individuals who are in some way identified in the advertising message and who hope to inform or persuade members of a particular audience. Morden (1991) is of the opinion that advertising is used to establish a basic awareness of the product or service in the mind of the potential customer and to build up knowledge about it. Kotler (1988) sees advertising as one of the four major tools companies use to direct persuasive communications to target buyers and public noting that it consists of non-personal forms of communication conducted through paid media under clear sponsorship. According to him, the purpose of
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advertising is to enhance potential buyers responses to the organization and its offering, emphasizing that it seeks to do this providing information, by channeling desire, and by supplying reasons for preferring a particular organizations offer. While writing on advertising nature and scope, Etzel et al. (1997) succinctly capture all advertising as having four features: (i) A verbal and or visual message (ii) A sponsor who is identified (iii) Delivery through one or more media (iv) Payment by the sponsor to the media Summarizing the above, they conclude that advertising then consist of all the activities involved in presenting to an audience a non-personal, sponsor-identified, paid-for message about a product or organization. Those views of Etzel et al. (1997) coincide with the simple but all-embracing definitions of Davies (1998) and Arens (1996). For instance, while Davies states that advertising is any paid form of non-personal media presentation promoting ideas/concepts, good s or services by an identified sponsor. Arens expressing almost the same view describes advertising as the personal communication of information usually paid for and usually persuasive in nature about products (goods and services) or ideas by identified sponsors through various media. From the foregoing, it could be concluded that the purpose of advertising is to cerate awareness of the advertised product and provide information that will assist the consumer to make purchase decision, the relevance of advertising as a promotional strategy, therefore, depends on its ability to influence consumer not only to purchase but to continue to repurchase and eventually develop-brand loyalty. Consequently, many organizations expend a huge amount of money on advertising and brand management. A brand is a name given by a manufacturer to one (or a number) of its products or services. Brands are used to differentiate products from their competitors. They facilitate recognition and where customers have built up favorable attitude towards the product, may speed the individual. buyers through the purchase decision process. Individual purchasers will filter out unfavorable or un-known brands and the continued purchase of the branded product will reinforce the brand loyal behavior. Without brands, consumer couldnt tell one product from another and advertising then would be nearly impossible.

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Advertisers primary mission is to reach prospective customers and influence their awareness, attitudes and buying behavior. They spend a lot of money to keep individuals (markets) interested in their products. To succeed, they need to understand what makes potential customers behave the way they do. The advertisers goals is to get enough relevant market data to develop accurate profiles of buyers-to-find the common group (and symbols) for communications this involves the study of consumers behavior: the mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy particular needs and wants (Arens, 1996). Proctor et al. (1982) noted that the principal aim of consumer behavior analysis is to explain why consumers act in particular ways under certain circumstances. It tries to determine the factors that influence consumer behavior, especially the economic, social and psychological aspects which can indicate the most favored marketing mix that management should select. Consumer behavior analysis helps to determine the direction that consumer behavior is likely to make and to give preferred trends in product development, attributes of the alternative communication method etc. consumer behaviors analysis views the consumer as another variable in the marketing sequence, a variable that cannot be controlled and that will interpreted the product or service not only in terms of the physical characteristics, but in the context of this image according to the social and psychological makeup of that individual consumer (or group of consumers). Economic theory has sought to establish relationships between selling prices, sales achieved and consumers income, similarly, advertising expenditure is frequently compared with sales. On other occasions financial accounting principles maybe applied to analyses profit and losses. Management ratios, net profit before tax, liquidity and solvency ratios can all be investigated. Under the situations the importance of the consumers motivations, perceptions, attitudes and beliefs are largely ignored. The consumer is assumed to be rational that is, to react in the direction that would be suggested by economic theory and financial principles. However, it is often apparent that consumer behaviors do not fall neatly into these expected patterns. It is for these reason that consumer behavior analysis is conducted as yet another tool to assess the complexities of marketing operations. The proliferation of assorted brands of food drinks in the country has led to the cut-throat competition for increased market share being witnessed currently among the operations in the food drink industry. Today, in Nigeria, there exists more than twenty brands of food drink both local and foreign, out of which two, namely Cadbury Nigeria Plcs Bournvita and Nestle Nigeria Plcs Milo keenly compete for market leadership. There are quite a host of up-coming and low-price localized brands in small sachets with Vita suffixes springing up in every nook and cranny of the country. Existing
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and popular brands, therefore, face intense competition with the affordable localized Vitas with high sugar content targeted at the low-income groups. It is, therefore, imperative for the more established brands like Bournvita to employ brilliant advertising and branding strategies to influence consumers behaviors in order to continue to enjoy and maintain market leadership. Given the competitive environment in the food and beverages sub sector of the economy and the high potential of advertising in helping companies realise and retain their position this paper examine the influence of advertising on a leading company in the food and beverages sub sector as a case study.

Purpose Statement
Following are the main purpose statements of the research.

Intent of the study


The main intent of the study would be to identify that how the tv advertisements are having an effect on the buying behavior of the consumer. The study will explain that how tv advertisements are having effects on the psyche of consumer and how it effects the buying behavior of the consumer. Some advertisements are having romantic effects on the consumer, some are having thrilling effects and some are having adverse effects. This study would be useful for the marketers in order to make some commercials for the public and will help the marketers understand what sort of expectations consumers are having from marketers when it comes to advertisements and how it effects on the buying behavior of consumers. And the main intent of the study is to see what sort of tv advertisements are having an impact on the buying behavior of consumers and how it effect it.

Definition of keywords
Following are the keywords of this research. Consumer: A consumer is a person or group of people who are the final users of products and or services generated within a social system. A consumer may be a person or group, such as a household. The concept of a consumer may vary significantly by context. or An individual who buys products or services for personal use and not for manufacture or resale.

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Information: Information is the peace of knowledge and insights which an individual is having and the awareness which one can use in order to buy something and which he can use to articulate to another in order to tell him so that he could also use it for future. Communication: Communication requires a sender, a message, and a recipient, although the receiver need not be present or aware of the sender's intent to communicate at the time of communication; thus communication can occur across vast distances in time and space. In advertisement the marketer conveys the message to notary public to mold their buying behavior towards their product.

Objectives:
Examining the influence of Information in the Advertisement in deciding consumer brand preference Identifying the influence of Communication in the Advertisement in deciding consumer brand preference Understanding the influence of Comprehension of the Advertisement in deciding consumer brand preference

Significance of the study:


This research is having a lot of significances in the field of marketing. Though some other researches have also been done on this topic but these were lacking something in it. This research will explain cent percent that how tv advertisement effects the buying behavior and what sort of tv advertisement is having which sort of effect on the behavior of a consumer. This research will explain that what percent of effect packaging is having on the buying behavior of consumer, to which extent the brand ambassador changes the buying behavior of consumer and how other graphics in ads help a particular product in order to get more and more customers. This research will also be useful for the policy makers as well as for the economists to make economies. This will explain that to which extent an ad is having an impact on the sale of that product and it would be easy for the policy makers and the economists to make policies according to that.

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Research question:
In this study we will check the relationship between TV advertisement and Consumer Behavior. The study will explain the Impact of TV advertisement on consumer behavior.

Main question What is the effect of TV advertisement on consumer buying behavior? Sub question
Does TV advertisement give detail information about product? Does TV advertisement communicate correction information? Have you tried any product after watching TV advertisement ?

Hypothesis:
H1 There is a relationship between TV advertisement and consumer buying behavior H0There is no relationship between TV advertisement and consumer buying behavior

Literature Review
I chose to conduct my research in the field of marketing after seeing its growing popularity and scope in this field. I choose to explore that whether tv advertisement really effects on consumer buying behavior or not. First talking about Tv Advertising, it is the non-personal communication of the information usually paid for and persuasive in nature about products, services or ideas by identified sponsors through the various media (Datta, 2008). The advertiser intends to spread his ideas about the products and offerings among the prospects. Popularization of the products is thus, the basic aim of advertising (Ramaswami & Namakumari, 2004). The advertiser intends to spread his ideas about the products and offerings among the prospects. Popularization of the products is thus, the basic aim of advertising (Ramaswami & Namakumari, 2004). media ever invented. It has a potential advertising impact unmatched by any other media (Saxena, 2005). Several researches have been done on this topic to see whether it is really having an impact on consumer buying behaviour or not. Farid Esfahani, Mohammad Ali Sardar and Behzad Hassannezhad Kashani has explored on the topic Relationship Between Media
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Advertisements and Purchase of Losing Weight Sport Products in Iran. Since, overweight is a major problem in current generation, manufacturers target it by designing and producing appliances such as belts, shorts, tablets, tag loss, stationary bicycle, treadmill, massager, etc which can help people in this respect. various medical sport equipments and methods have entered into the market in recent years in order to decrease the fat percentage. in recent years in order to decrease the fat percentage. not revealed for the potential consumer market and customers are not informed about them or the potential target market has not included in advertising range of manufacturing companies. Then Ahasanul Haque, Sabbir Rahman, Ismail Sayyed Ahmed, Farzana Yasmin, and Almas Asri conducted their research on a growing business in Pakistan which is fast food restaurants and the topic was Assessing the impact of Advertisement towards Malay Consumers: an Empirical Study of Fast Food Restaurants in Malaysia in year 2011. Fast food restaurants are popular because of its price, quick service and promotion that can influence customers perceptions. Fast food restaurants that still exits are Kentucky Fried Chicken (KFC), MC Donalds (McD), and Subway, Pizza Hut, Get Stuffs and more. Advertising has core competencies to become more effective because effective marketing communications have become an essential part of a firms success in introducing and promoting products and services. Effective advertising depends on criteria that have been used by advertisers such as entertainments and likeability advertisings (Zhang etal. 2002).In addition to that, (tutor2u.net, 2009) websites stated, The advertising message must be carefully targeted to impact the target customer audience. This again showed the importance of advertisement . Advertising is a major tool of capitalist system especially in United States and contributed to one of the highest standards of living in the world. William et al, (2004) quoted by McCarthy and Howard (2003) Advertising expenditures account approximately 3 % of a developed countrys gross national product and the U.S often leads rate with $543.8 spent per capita in 2002. William et al, (2004) also quoted by Carey, (1989), advertising is a powerful economic force and an important in the United States. So all the findings shows that advertisement does have an impact on consumers buying behaviour in fast food industry as well. Then Miss. Vithya Vivekananthan, Faculty of Commerce and Management, Eastern University, Vantharu moolai, Sri Lanka also tried to explore the importance of advertisement in brand preference her research topic was A STUDY ON INFLUENCE OF
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ADVERTISEMENT IN CONSUMER BRAND PREFERENCE (SPECIAL REFERENCE TO SOFT DRINK MARKET IN MANMUNNAI NORTH D.S DIVISION BATTICALOA). Her studies tells us that the importance of sales on business survival and the connection between customers and sales, it is expedient for organizations to engage in programmes that can influence consumers decision to purchase its products. This is where advertising and brand management are relevant. Advertising is a subset of promotion mix which is one of the Four Ps in the marketing mix i.e. product, price, place and promotion. As a promotional strategy, advertising serve as a major tool in creating product awareness and condition the mind of a potential consumer to take eventual purchase decision. After it there were some other researches on Effective advertising and its influence on consumer buying behaviour. This research was being researched by Zain-Ul-Abideen and Salman Saleem. It states that Almost every one grows up in the world which is flooded with the mass media e.g. television, advertising, films, videos, billboards, magazines, movies, music, newspapers, and internet (Latif & Abideen, 2011). Of all marketing weapons, advertising is renowned for its long lasting impact on viewers mind, as its exposure is much broader (Katke, 2007). Advertising is a subset of promotion mix which is one of the 4Ps in the marketing mix i.e. product, price, place and promotion. As a promotional strategy, advertising serve as a major tool in creating product awareness in the mind of a potential consumer to take eventual purchase decision. Advertising, sales promotion and public relations are mass-communication tools available to marketers. Advertising through all mediums influence audiences, but television is one of the strongest medium of advertising and due to its mass reach; it can influence not only the individuals attitude, behavior, life style, exposure and in the long run, even the culture of the country (Latif and Abideen, 2011). Telecommunication technology enables business and industry to grow at a faster pace while simultaneously contributing to the economic development and at the same time telecommunication infrastructure can be reliable indicator of economic development. Cellular phone industry has been one of the profitable businesses in Asian business (Roberts, 1998). E.g. In 2001, Chinas cell phone market grew into 130 million users, exceeding the U.S.s market for the first time (Robertson, 2001). Moreover, in 2004, Chinese cell phone users population reached 335 million (25% of the total Chinese population), 65 million more than 2003 (Statistics of CMII,2005). Advanced Micro Devices, Inc. (AMD) listed China as its top priority in the SWOT analysis. The countrys growing population and huge demand potential have always been an attraction for many high-tech multinational companies.
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After it there was another research and that too in our own city Lahore on the topic of IMPACT OF ADVERTISEMENT ON CONSUMER BEHAVIOR OF FMCG IN LAHORE CITY. This study states that Each and every product delivers the different meaning to each user. User behavior is not related what consumer buy, but also with what they buy it. It depends on those factors which inclined the behaviour of user or buyer. Culture, family and brand image these all factors influenced the buying behaviour. Market share of the product depend on the awareness of consumer. Thats why the organizations and agencies advertise their product via media either electronic or print or both. The repetition of advertisement and economic factor like per capital income also change the consumer behaviour about to choice the product. In 2011 Pakistans national per capital income is $1254 and it is too much low rather than other countries. Pakistan is on 24 ranks regarding per capital income. Due to competition every organization do advertisement more and it effect directly on their product demand and organization move upward smoothly. All the advertising methods inclined the user behaviour but media influence more than other sort of advertisement (Latif and Abideen, 2011). Smith and Whan (1992) found that the high quality product not only capture the greater share of market but maximizing the market value. The consumer spent more on the Fast Moving Consumer Goods (FMCG). At the end it is obvious that advertisement has a big impact on the consumer buying behaviour. R. Ayhan Ylmaz, Assistant Prof. Dr. Selen Ersava, MA Student research on brand embaciter and his impact on sales of a product his research consists of two parts one is to measure the frequency for that he use the method of contents analysis method and in the next part . In the second part, exploratory investigation method is used to determine the attitude towards the commercials/brands.

Model
Information TV advertisement Communication Consumer Behavior

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Research Methodology
(Mention all paradigms defination) Paradigms: Positivism is philosophy of science based on the view that in the social as well as natural sciences, data derived from sensory experience, and logical and mathematical treatments of such data, are together the exclusive source of all authentic knowledge. Obtaining and "verifying" data that can be received from the senses is known as empirical evidence. Society operates according to laws like the physical world. Introspective and intuitional attempts to gain knowledge are rejected. Though the positivist approach has been a recurrent theme in the history of Western thought from the Ancient Egyptians to the present day, the concept was developed in the early 19th century by the philosopher and founding sociologist, Auguste Comte.Comte argued that society operates according to its own laws, much as the physical world operates according to gravity and other laws of nature Anti-positivists, or interpretivists take the view that since human beings think and reflect, scientific methods are inappropriate for the study of society. Unlike objects in nature, human beings can change their behaviour if they know they are being observed. So interpretivists argue that if we want to understand social action, we have to delve into the reasons and meanings which that action has for people. Take the example of crime. A positivist would argue that researchers can simply measure crime using quantitative methods and identify patterns and correlations. An interpretivist would argue that sociologists need to understand what people mean b crime, how they come to categorize certain actions as criminal and t896+hen investigate who comes to be seen as criminal in a particular society. Pragmatism is an American philosophy from the early 20th century. According to Pragmatism, the truth or meaning of an idea or a proposition lies in its observable practical consequences rather than anything metaphysical. It can be summarized by the phrase whatever works, is likely true. Because reality changes, whatever works will also change thus, truth must also be changeable and no one can claim to possess any final or ultimate truth.

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Population and Sampling


Sampling Sampling is the process of selecting sector of the population for study

Population
Sample size: Sample size of my study will be 500 respondents Respondents: Questionnaire will be filled from University students and different family restaurant prior to their permission

Data Collection Method


Data will be collected through questionnaire, our respondent will be from different universities and we will fill questionnaire from family restaurant as well

Data Analysis Method


There are two types of methods used and they are as follows: Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when, "why" and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, Descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. Inferential statistics, unlike descriptive statistics, is a study to apply the conclusions that have been obtained from one experimental study to more general populations.
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It should be noted that inferential statistics always talks in terms of probability, but this can be made highly reliable by designing the right experimental conditions. The inferences are almost always an estimate with a confidence interval. There is however some cases where there is simply a rejection of hypothesis that is involved, which is the case if the experiment is designed to refute some claim. Several models are available in inferential statistics that help in the process of analysis. These models need to be chosen with care, since an error in assuming one model might give wrong conclusions about the experiment. A histogram is a display of statistical information that uses rectangles to show the frequency of data items in successive numerical intervals of equal size. In the most common form of histogram, the independent variable is plotted along the horizontal axis and the dependent variable is plotted along the vertical axis. The data appears as coloured or shaded rectangles of variable area. The illustration, below, is a histogram showing the results of a final exam given to a hypothetical class of students. Each score range is denoted by a bar of a certain colour. If this histogram were compared with those of classes from other years that received the same test from the same professor, conclusions might be drawn about intelligence changes among students over the years. Conclusions might also be drawn concerning the improvement or decline of the professor's teaching ability with the passage of time. If this histogram were compared with those of other classes in the same semester who had received the same final exam but who had taken the course from different professors, one might draw conclusions about the relative competence of the professors. Correlation refers to any of a broad class of statistical relationships involving dependence. Correlations are useful because they can indicate a predictive relationship that can be exploited in practice. For example, an electrical utility may produce less power on a mild day based on the correlation between electricity demand and weather. In this example there is a causal relationship, because extreme weather causes people to use more electricity for heating or cooling; however, statistical dependence is not sufficient to demonstrate the presence of such a causal relationship. In statistics, regression analysis includes many techniques for modelling and analyzing several variables, when the focus is on the relationship between a dependent variable and one
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or more independent variables. More specifically, regression analysis helps one understand how the typical value of the dependent variable changes when any one of the independent variables is varied, while the other independent variables are held fixed. Most commonly, regression analysis estimates the conditional expectation of the dependent variable given the independent variables that is, the average value of the dependent variable when the independent variables are held fixed. Less commonly, the focus is on quantize, or other location parameter of the conditional distribution of the dependent variable given the independent variables. In all cases, the estimation target is a function of the independent variables called the regression function. In regression analysis, it is also of interest to characterize the variation of the dependent variable around the regression function, which can be described by a probability distribution.

Analysis
We will analysis our data in SPSS

Delimitations and limitations


Due to limitations resources and time the purpose study will be delimitze to the following level. This study is delimitized to use quantitative approach. Only one city i.e.is taken as research site and take small sample size i.e. 500. As we are student so have limited time. As we are student so have limited time

Ethical Consideration
The purpose of the study is made clear and simple to be easily understood by the readers and the respondents and we will take prior permission should be taken for the video or voice recording. I will not use any hidden device for the video and recording. The privacy of the respondent kept protect till the end. All information provided would be held in strict confidence

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Time Table
This study would be done in a span of 6 months. In the initial days the relevant data would be collected through different literature. Then the data would be collected from the members. And then the process of writing will start and then will come the stage of submission of the work. For the collection of data numerous places of Lahore will be selected, which will include the educational institutes, shopping malls and some other recreational sites.

Budget
The possible budget which would be required for this study would be 7000 rupees. Approximately 4000 would be consumed in the travelling as the data collection process will consists of all the areas of Lahore and then approximately 1000 rupees will occur on the entertainment during the data collection stage and the remaining 2000 rupees would be on the printing and bindings of questionnaires and the working.

Travelling Entertainment Printing and Binding

4000 1000 2000

4000 5000 7000

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