PROJECT REPORT

ON

“THE IMPACT OF
ADVERTISING ON BUYER
BEHAVIOUR: - A STUDY ON
AIRTEL V/S VODAFONE”

MASTERS OF BUSINESS ADMINISTRATION

(2008-2010)

Submitted By:
DEEPIKA VERMA
EnrolNo.1111563908
MBA (2008-2010)

Submitted to:
NORTHERN INDIA BUSINESS SCHOOL
(Affiliated from GGSIP University)
 FC-26, Shastri park, new delhi-53

INDEX

S,NO CONTENTS PAGE NO.

1. • Objectives of the study 2

2. • Literature Review 3

3. • Research methodology 7

4. • Data analysis and Interpretations 9

5. • conclusions 27

6. • References 28

7. • Questionnaire 29

2
 OBJECTIVE

1. A study on the effectiveness of recent advertisement campaign of Vodafone &

Airtel.

2. To find out which telecom company have good advertising and what type of

advertising buyers like most.

3. To know the role of advertisements on the buying behavior of the customer.

4. To know which telecommunication has creative advertising.

5. To know the advertisement by Airtel & Vodafone catch buyers attention or

not.

6. To study customer buying behavior and factors which influence the purchase

decision process

3
 INTRODUCTION

WHAT IS ADVERTISING

Advertising is a non-personal form of promotion that is delivered through selected media

outlets that, under most circumstances, require the marketer to pay for message
placement. Advertising has long been viewed as a method of mass promotion in that a
single message can reach a large number of people. But, this mass promotion approach
presents problems since many exposed to an advertising message may not be within the
marketer’s target market, and thus, may be an inefficient use of promotional funds.
However, this is changing as new advertising technologies and the emergence of new
media outlets offer more options for targeted advertising.

Advertising also has a history of being considered a one-way form of marketing

communication where the message receiver (i.e., target market) is not in position to
immediately respond to the message (e.g., seek more information). This too is changing.
For example, in the next few years technologies will be readily available to enable a
television viewer to click a button to request more details on a product seen on their
favorite TV program. In fact, it is expected that over the next 10-20 years advertising
will move away from a one-way communication model and become one that is highly
interactive.

Another characteristic that may change as advertising evolves is the view that advertising
does not stimulate immediate demand for the product advertised. That is, customers
cannot quickly purchase a product they see advertised. But as more media outlets allow
customers to interact with the messages being delivered the ability of advertising to
quickly stimulate demand will improve.

4
 IMPORTANCE OF ADVERTISING

Spending on advertising is huge. One often quoted statistic by market research firm
Zenith Optimedia estimates that worldwide spending on advertising exceeds (US) $400
billion. This level of spending supports thousands of companies and millions of jobs. In
fact, in many countries most media outlets, such as television, radio and newspapers,
would not be in business without revenue generated through the sale of advertising.

While worldwide advertising is an important contributor to economic growth, individual

marketing organizations differ on the role advertising plays. For some organizations little
advertising may be done, instead promotional money is spent on other promotion options
such a personal selling through a sales team. For some smaller companies advertising
may consist of occasional advertisement and on a very small scale, such as placing small
ads in the classified section of a local newspaper.

But most organizations, large and small, that rely on marketing to create customer
interest are engaged in consistent use of advertising to help meet marketing objectives.
This includes regularly developing advertising campaigns, which involve a series of
decisions for planning, creating, delivering and evaluating an advertising effort. We will
cover advertising campaigns in greater detail in our next tutorial.

MANAGING ADVERTISING DECISIONS:

Delivering an effective marketing message through advertising requires many different

decisions as the marketer develops their advertising campaign. For small campaigns, that
involve little creative effort, one or a few people may handle the bulk of the work. In
fact, the Internet has made do-it-yourself advertising an easy to manage process and has
especially empowered small businesses to manage their advertising decisions. As we
will see, not only can small firms handle the creation and placement of advertisements
that appear on the Internet, new services have even made it possible for a single person to
create advertisements that run on local television. For instance, a company called
SpotRunner allows users to select from a list of high-quality television ads that can be
customized and then placed within local cable television programming.

5
For larger campaigns the skills needed to make sound advertising decisions can be quite
varied and may not be easily handled by a single person. While larger companies
manage some advertising activities within the company, they are more likely to rely on
the assistance of advertising professionals, such as those found at advertising agencies, to
help bring their advertising campaign to market.

TYPES OF ADVERTISING:

If you ask most people what is meant by “type” of advertising, invariably they will
respond by defining it in terms of how it is delivered (e.g., television ad, radio ad, etc.).
But in marketing, type of advertising refers to the primary “focus” of the message being
sent and falls into one of the following four categories:

PRODUCT-ORIENTED ADVERTISING:

Information most advertising spending is directed toward the promotion of a specific

good, service or idea, what we have collectively labeled as an organization’s product. In
most cases the goal of product advertising is to clearly promote a specific product to a
targeted audience. Marketers can accomplish this in several ways from a low-key
approach that simply provides basic about a product (informative advertising) to blatant
appeals that try to convince customers to purchase a product (persuasive advertising) that
may include direct comparisons between the marketer’s product and its competitor’s
offerings (comparative advertising).

However, sometimes marketers intentionally produce product advertising where the

target audience cannot readily see a connection to a specific product. Marketers of new
products may follow this “teaser” approach in advance of a new product introduction to
prepare the market for the product. For instance, one week before the launch of a new
product a marketer may air a television advertisement proclaiming “After next week the
world will never be the same” but do so without any mention of a product or even the
company behind the ad. The goal is to create curiosity in the market and interest when
the product is launched.

6
IMAGE ADVERTISING:

Image advertising is undertaken primarily to enhance an organization’s perceived

importance to a target market. Image advertising does not focus on specific products as
much as it presents what an organization has to offer. In these types of ads, if products
are mentioned it is within the context of “what we do” rather than a message touting the
benefits of a specific product. Image advertising is often used in situations where an
organization needs to educate the targeted audience on some issue. For instance, image
advertising may be used in situations where a merger has occurred between two
companies and the newly formed company has taken on a new name, or if a company has
received recent negative publicity and the company wants to let the market know that
they are about much more than this one issue.

ADVOCACY ADVERTISING:

Organizations also use advertising to send a message intended to influence a targeted

audience. In most cases there is an underlying benefit sought by an organization when
they engage in advocacy advertising. For instance, an organization may take a stand on a
political issue which they feel could negatively impact the organization and will target
advertisements to voice their position on the issue.

PUBLIC SERVICE ADVERTISING:

In some countries, not-for-profit organizations are permitted to run advertisements

through certain media outlets free-of-charge if the message contained in the ad concerns
an issue viewed as for the “greater good” of society. For instance, ads directed at social
causes, such as teen-age smoking, illegal drug use and mental illness may run on
television, radio and other media without cost to organizations sponsoring the
advertisement.

7
 Advertisement by VODAFONE
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Latest advertisement in IPL- season 3

8
CATEGORY: TV, Impressive Ad, Airtel, India, Professional, IPL 2010,
Telecom, Value Added Services

9
10
 RESEARCH METHODOLOGY
The research methodology that I undertook for the purpose of this study is enumerated
below-

PRIMARY DATA COLLECTION:

This consisted questionnaire and interaction from various people. A focus group study
will be conducted to design the customer survey questionnaire with a sample size of 50
respondents. The survey was conducted in shahdara, Delhi.

Questionnaire:
The questionnaire was prepared keeping in line with the objectives of the
study. It is a set of definite questions formed to collect the required facts or
opinions from others while preparing the questionnaire attention must be given to
the number of question, type of questions according of question and the sequence
of questionnaire etc.

1. Survey Method:

The survey technique is used to secure one or more information from a

sample of respondents or informer presenting longer group. The information is
collected with the help of a form known as Questionnaire or schedule.

2. Field survey:

It is the direct form of investigation involving face to face communication

and free feedback of information between the respondents and the interviewers.

11
SECONDARY DATA COLLECTION:

Sources of secondary data were primarily the Internet, journals, newspaper, annual
report, database available in the library, catalogues and presentations.

Secondary data are collected by:

1. Internal sources

2. Magazines

3. Internet

The data collected from respondents was processed in following manner.

1. Tabulation:

The data collected from respondents through questionnaires and meeting are
tabulated arranged gives schematic presentations.

2. Graphical representation:

The tabulated data is represented graphically in order to provide easy

interpretations.

3. Interpretation:

12
 It is based upon the tabulation. It gives inference about the issues presented in
question and the collected against it. We do believe that we are on the threshold of an
exciting new opportunity where we can play a significant role in redefining and reshaping
the telecom sector. Given the quality of our parentage and commitment of our team, there
are no limit tour growths.

RESEARCH DESIGN: DESCRIPTIVE

Descriptive studies are well structured, they tend to be rigid and its approach can not be
changed every now and then. Descriptive study can be divided in two categories:

(A) Cross sectional

(B) Longitudinal

Descriptive study are undertaken in many circumstances:

1. When the researcher is interested in knowing the characteristics of certain groups

such as age, profession.

2. When the researcher is interested in knowing the proportion of people in given

population who have behaved in a particular manner, making projection of certain
things.

The objective of this kind of study is to answer the why, who, what, when and how of the
subject under consideration.

I will be taking descriptive because my research includes the knowing the buying
behavior of customer towards advertisement. I will be working on to know how people of

13
various age group respond to different advertising or there perception towards
advertisement. Also my survey is related to two companies Air Tel and Vodafone.

TOOLS OF DATA COLLECTION:

OPEN ENDED:

They give the respondents complete freedom to decide the form, length and detail of the
answer. Open questions are preferred when the researchers is interested in knowing what
is upper most in the mind of respondents.

CLOSED ENDED QUESTIONS:

This type of questions have only two type of answer, yes or no. true or false etc

SAMPLE UNIT:
UNIT: - Shahdara, Delhi

The research process was done by interacting with number of customers during the
activities performed, which included, markets, cold calling, canopies, etc.

SAMPLE DESIGN:
DESIGN: It consists of random sampling.

SAMPLE SIZE:
SIZE: - 50 people

14
 DATA ANALYSIS AND

INTERPRETATION
After the data collection, it was compiled, classified and tabulated manually and with
help of computer. Then the task of drawing inferences was accomplished with the help of
percentage and graphic method. Different suggestions given by me to the Company after
analyzing the views of every respondent are also given in the report.
Keeping in mind the objectives of the study, the survey was being done and
following interpretation was being drawn.

DEMOGARPHIC FEATURES OF REPONDENTS

1. Sex ratio of the respondents

S.NO. PARTICULARS NUMBER %AGE

A MALE 39 78%
B FEMALE 11 22%

15
 90%
80%
70%
60%
50% male
40% female
30%
20%
10%
0%

INTERPRETATION: The graphical representation of the table shows that out of 50

respondents 39 were male and 11 were female.

2. AGE GROUP OF RESPONDENTS

S.NO. PARTICULARS NUMBER %AGE

A 15-25 21 42%
B 25-35 18 36%
C 35-45 6 12%
D 45 above 5 10%

16
 45
40
35
30 15-25
25 25-35
20 35-45
15 45 above
10
5
0
%age

INTERPRETATION: The graphical representation of the table shows that out of total
respondents 42% were of age 15-25, 36% 25-35, 12% 35-45, and rest were above 45.

3. LITERACY RATE AMONG THE RESPONDENTS

S.NO. PARTICULARS NUMBER %AGE

A MATRICULATE 8 16
B INTERMEDIATE 17 34
C GRADUATION 19 38
D POST-GRADUATION 6 12

17
 40
35
30
matric
25
intermediate
20
graduate
15
P.G
10
5
0
%age

INTERPRETATION: The graphical representation of the table shows that out of total
respondents 8 were matriculate,17 were intermediate,19graduateand rest 6 were
postgraduate.

4. Who is your current service provider?

S.NO. PARTICULARS NUMBER %AGE

A AIRTEL 14 28
B VODAFONE 25 50
C OTHERS 11 22

18
 60

50

40
AIRTEL
30 VODAFONE
20 OTHERS

10

0
%AGE

INTERPRETATION: The 14 person were used Air Tel and 25 person were used
vodaphone and 11 were used other.

5. For how long you are using this mobile connection?

AIRTEL
S.NO. PARTICULARS NUMBER %AGE
A Less than 6 months 2 14%
B 6 to 12 months 3 21%
C Above 12 months 9 65%

19
 70%

60%
50%
less than 6
40%
12-Jun
30%
above 12
20%
10%

0%

INTERPRETATION :Two person were used since six month and three were used since
twelve months and nine were used since two year.

VODAFONE

S.NO. PARTICULARS NUMBER %AGE

A Less than 6 months 1 4%
B 6 to 12 months 3 12%
C Above 12 months 21 84%

20
 100

80

60 less than 6
12-Jun
40
above 12
20

0
%age

INTERPRETATION: The one person were used since six months and three were used
since one year and twenty were used since two year

OTHERS

S.NO. PARTICULARS NUMBER %AGE

A Less than 6 months 1 9%
B 6 to 12 months 2 18%
C Above 12 months 8 73%

21
 80
70
60
50 less than 6
40 12-Jun
30 above 12
20
10
0
%age
INTERPRETATION: The one person was used since six months and two were used
since one year and eight were used since two year.

6. What was the reason for choosing this mobile connection?

AIRTEL
S.NO. PARTICULARS NUMBER %AGE
A Recommended by friends and relative 5 36%
B Recommended by retailer 2 14%
C Brand image 1 7%
D Advertisement 6 43%

22
 50
45
40
35 by frnd&rltv
30
by retailer
25
20 brand image
15 advertise
10
5
0
%age

INTREPRETATION: Five were recommended by friends and relative and two were by
retailer and one was by brand image and six were by advertisement.

VODAFONE

S.NO. PARTICULARS NUMBER %AGE

A Recommended by friends and relative 6 24%
B Recommended by retailer 2 8%
C Brand image 7 28%
D Advertisement 10 40%

23
 50

40
by frnd &rltv
30
by rtlr

20 brnd im g
advrtisem nt
10

INTREPRETATION: Six were recommended by friends and relative and two were by
retailer and seven were by brand image and ten were by advertisement.

OTHERS

S.NO. PARTICULARS NUMBER %AGE

A Recommended by friends and relative 2 18
B Recommended by retailer 2 18
C Brand image 6 55
D Advertisement 1 9

24
 60
50
by frnd rltv
40
by rtlr
30
brand im g
20
advertisem ent
10
0
%age

INTREPRETATION: Two were recommended by friends and relative and two were by
retailer and six were by brand image and one was by advertisement.

7. While purchasing a connection does advertisement plays any role?

S.NO. PARTICULARS NUMBER %AGE

A Yes 42 84%
B No 8 16%

25
 100

80

60 yes
no
40
Colum n 3
20

0
%age

INTERPRETATION: The fourty two person were saying yes and eight were says no.

8. From where you watch the advertisement most?

S.NO. PARTICULARS NUMBER %AGE

A Television 31 62%
B Radio 0 0%
C Newspaper 11 22%
D Magazines 8 16%

26
 70
60
50 Television
40 Radio
30 New spaper
20 m agazines
10
0
%age

INTERPRETATION: The mostly people sees advertisement in the television.

9. Which telecommunication has good advertisements?

S.NO. PARTICULARS NUMBER %AGE

A Air Tel 21 42
B Vodafone 24 48
C Any other 5 10

27
 60

50

40
AIRTEL
30 VODAFONE
20 ANYOTHER

10

0
%AGE

INTERPRETATION: mostly Vodafone have good advertisement.

10. How well advertisements of the Air Tel catch your attention?

S.NO. PARTICULARS NUMBER %AGE

A Very well 22 44
B Somewhat well 12 24
C Undecided 6 12
D Not at all 10 20

28
 50

40
very well
30 somewhat well
20 undecided
not at all
10

0
%age

INTERPRETATION: The 22 person says very well and 12 person says some what well
and 6 were undecided and 10 were says no.

11. How well did the advertisement of Vodafone catch your attention?

S.NO. PARTICULARS NUMBER %AGE

A Very well 26 52
B Somewhat well 10 20
C Undecided 6 12
D Not at all 8 16

29
 60

50

40 very well
somewhatwll
30
undecided
20 not at all

10

INTERPRETATION: The 26 person says very well and 10 person says some what well
and 6 were undecided and 8 were says no.

12. Do you think that advertisement made by company informs you

about there new products?

S.NO. PARTICULARS NUMBER %AGE

A YES 34 68
B NO 12 24
C UNDECIDED 4 8

30
 80

70

60

50
YES
40 NO

30 UNDECIDED

20

10

0
%AGE

INTERPRETATION: The 34 person says yes and 12 person says no and 4 person were
no response.

13. Based on advertisements made by company, would you like to go for

more connection for you or your family in future?

S.NO. PARTICULARS NUMBER %AGE

A YES 38 76
B NO 7 14
C UNDECIDED 5 10

31
 80
70
60
50 yes
40 no
30 undecided
20
10
0

INTERPRETATION: The 38 person says yes and 7 person says no and 5 person were no
response.

14. Do you collect any information search before making purchase?

S.NO. PARTICULARS NUMBER %AGE

A Yes 42 84%
B No 8 16%

32
 NUMBER

16 % A Yes
B No

84 %

INTERPRETATION: The fourty two person were saying yes and eight were says no.

15. If yes, which sources are used?

S.NO. PARTICULARS NUMBER %AGE

A  Operators references 5 10%
B  Dealers 8 16%
C  Advertisement 25 50%
D Magazines 4 8%
E Reference from friends and relatives 6 12%

F  Any other 2 4%

33
 NUMBER A
q
Operators references

Bq
Dealers

C
q
4% 10 % Advertisement
12 %
D Magazines

8% 16 %
E Reference from
friends and relatives

50 % F
q
Any other

16 .Which of these types of Airtel advertisement attracts you while

purchasing any connection?

S.NO. PARTICULARS NUMBER %AGE

A 1. Good Network ads 8 16
B Discount scheme ads 6 12
C 2. Value added services ads 10 20
D 3. Celebrity used ads 26 52

34
 NUMBER

Aq
Good Network ads

B Discount scheme
ads

Cq
16 % Value added services ads

12%
52 % Dq
Celebrity used ads

20 %

INTERPRETATION: The twenty six person were saying they attract by celebrity used in
advertisement, and Ten by value added services advertisement.

17. Which of these types of Vodafone advertisement attracts you while

purchasing any connection.

S.NO. PARTICULARS NUMBER %AGE

A Good Network ads 2 4
B Discount scheme ads 6 12
C Value added services (zoo zoo) ads 42 84

35
 NUMBER

A Good Network
4% ads

12%
B Discount scheme ads

C Value added
services (zoo zoo) ads

84 %

NTERPRETATION: The fourty two person were saying they attract by value added
services advertisement (ZOO ZOO)

LIMITATIONS

No project is without limitations and it becomes essential to figure out the various

constraints that we underwent during the study. The following points in this direction

would add to our total deliberations:-

36
 1. During the study, on many occasions the respondent groups gave us a cold

shoulder.

2. The respondents from whom primary data was gathered any times

displayed complete ignorance about the complete branded range, which

was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/whole sellers refuse to cooperate with the queries.

5. Some retailers/wholesalers gave biased or incomplete information

regarding the study.

6. Lack of proper information and experience due to short period of time.

7. Some retailers did not answer all the questions or do not have time to

answer.

CONCLUSIONS
1. People like to watch advertisement on television mostly.
2. Respondents like to purchase new mobile connection based on advertisements.
3. Maximum respondents were in favor of that, Vodafone’s advertising is better than
other companies.
4. Maximum number of respondents were in favor of that, they would like to purchase
more connection of the company with good advertisement policy.
5.

37
 BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in details the
following Books, Magazines/Journals and Web Sites have been referred. All the material
detailed below provides effective help and a guiding layout while designing this text
report.

Books:

Principles of Marketing –Philip Kotler & Kevin Keller edi. 12

38
Market Research – D.D. Sharma

Research Methodology – C.R. Kothari

Websites:

www.Airtelworld.com

www.google.com

www.india.com
www.Vodafone.in

QUESTIONNAIRE
Dear Sir/Madam
I am the student of MBA-4th Semester at Northern India Engineering College doing a
project “THE IMPACT OF ADVERTISING ON BUYER BEHAVIOUR: - A
STUDY ON AIRTEL V/S VODAFONE” Please co-operate to fill this questionnaire.

1. Name _________________________________________

2. Sex: (a) Male (b) Female

39
3. Age: (a) 15-25 (b) 25-35

(c) 35-45 (d) Above 45

4. Education: (a) Matriculate (b) Intermediate

(C) Graduation (d) Postgraduate

5. Who is your current service provider?

a) Airtel b) Vodafone c) Any other

6. For how long you are using this mobile connection?

a) Less than 6 months.
b) 6 to 12 months.
c) Above 12 months.

7. What were the reasons for choosing this mobile connection?

a) Recommended by friends or relatives.
b) Recommended by retailers.
c) Brand image
d) Advertisement

8. While purchasing a connection advertising plays any role

a) Yes b) No

40
9. from where you watch the advertisement most
a) Television
b) Radio
c) Newspaper
d) Magazines

10. Which telecommunication has creative advertising?

a) Air Tel
b) Vodafone
c) Any other

11. How well did advertisement of the AirTel catch your attention?
a) Very well
b) Somewhat well
C) Undecided
d) Not at all.

12. How well did the advertisement of the Vodafone catch your attention?
a) Very well
b) Somewhat well
C) undecided
d) Not at all

13. Do you think that advertisement made by company informs you about there products?
.a) Yes
b) No
C) Undecided
14. Do you collect any information search before making purchase?

Yes No

15. If yes, which sources are used?

41
 a) Magazines
b) Dealers
c) Operators references
d) advertisement
e) Reference from friends and relatives
f) Any other

16. Which of these types of Airtel advertisement attracts you while purchasing any
connection?

a) Good Network ads

b) Discount scheme ads
c) Value added services ads
d) Celebrity used ads
17. Which of these types of Vodafone advertisement attracts you while purchasing any
connection?

a) Good Network ads

b) Discount scheme ads
c) Value added services (Zoo Zoos) ads
“Thanks for your valuable time and co-operation”

42