CHAPTER 1 CONCEPTUAL FRAMEWORK

1.1 Introduction
Through this report we want to find out how children are influenced by the advertisements and buying capacity of parents especially of confectionary products. So the statement of this project would be Impact of Advertisements on Children and various factors influencing the buying behavior with special reference to confectionary products. The research process goes within the following confectionary products: Biscuits Chocolates Noodles Sauces Health Drinks

1.1.1 Background
As education became an apparent need and reading, as well as printing, developed advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote books and newspapers, which became increasingly affordable with advances in the printing press; and medicines, which were increasingly sought after as disease ravaged Europe. However, false advertising and so-called "quack"(fake) advertisements became a problem, which ushered in the regulation of advertising content. As the economy was expanding during the 19th century, advertising grew alongside. In the United States, classified ads became even more popular, filling pages of newspapers

with small print messages promoting all kinds of goods. In 1843, the first advertising agency was established by Volney Palmer in Philadelphia. At first, agencies were brokers for ad space in newspapers. N.W. Ayer & Son was the first full-service agency to assume responsibility for advertising content. It was also the first agency to charge a commission on ads. In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. In the early 1920s, the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and civic groups. When the practice of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows. However, radio station owners soon realized they could earn more money by selling sponsorship rights in small time allocations to multiple businesses throughout their radio station's broadcasts, rather than selling the sponsorship rights to single businesses per show. The radio station owners soon realized they could earn more money by selling sponsorship rights to other businesses. In those days, each show was usually sponsored by a single business, in exchange for a brief mention of the sponsor at the beginning and end of the show. This practice was carried over to television in the late 1940s and early 1950s. However, a fierce battle was fought between those seeking to commercialize this new medium and the people who argued that the radio spectrum should be considered the commons, to be used only non-commercially and for the public good. In Canada, advocates like Graham Spry were able to convince the government to adopt a socialist funding model. England followed suit with the development of the BBC. However in

the United States, the capitalist model prevailed with the passage of the 1934 Communications Act which created the Federal Communications Commission. To placate the socialists, the U.S. Congress did require that commercial broadcasters operate in the "public interest, convenience, and necessity". However public radio certainly exists in the United States. In the early 1950s, the Dumont television network began the modern trend of selling advertisement time to multiple sponsors. Dumont had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. This eventually became the norm for the commercial television industry in the United States. However, it was still a common practice to have single sponsor shows, such as the U.S. Steel Hour. In some instances the sponsors exercised great control over the content of the show - up to and including having one's advertising agency actually writing the show. The single sponsor model is much less prevalent now, a notable exception being the Hallmark Hall of Fame. The 1960s saw advertising transform into a modern approach in which creativity was allowed to shine, producing unexpected messages that made advertisements more tempting to consumers' eyes. The Volkswagen ad campaignfeaturing such headlines as "Think Small" and "Lemon" ushered in the era of modern advertising by promoting a "position" or "unique selling proposition" designed to associate each brand with a specific idea in the reader or viewer's mind. This period of American advertising is called the Creative Revolution and its archetype was William Bernbach who helped create the revolutionary Volkswagen ads among others. Some of the most creative and long-standing American advertising dates to this period. The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising. As cable and satellite television became increasingly prevalent, specialty channels emerged, including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and ShopTV Canada.
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 Marketing through the Internet opened new frontiers for advertisers and contributed to the "dot-com"(.com) boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising. The share of advertising spending relative to GDP has changed little across large changes in media. For example, in the U.S. in 1925, the main advertising media were newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2.9 percent. By 1998, television and radio had become major advertising media. Nonetheless, advertising spending as a share of GDP was slightly lowerabout 2.4 percent. A recent advertising innovation is "guerrilla marketing", which involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. Guerrilla advertising is becoming increasing more popular with a lot of companies. This type of advertising is unpredictable and innovative, which causes consumers to buy the product or idea. This reflects an increasing trend of interactive and "embedded" ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social network services such as MySpace

1.1.2 ADVERTISING
Advertising is a form of communication intended to persuade its viewers, readers or listeners to take some action. It usually includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers to purchase or to consume

that particular brand. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail. Advertising may be placed by an advertising agency on behalf of a company or other organization. Organizations that spend money on advertising promoting items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement.

1.1.2.1 Changing scenario of advertising

Marketing through advertising is considered an important variable in the global business. Advertising is second only to films as far as its influence on the society is concerned. History bears testimony to the fact that the great Romans practiced advertising. Their surnames indicated their occupation. The potentialities of advertising multiplied when manual press was invented in the 15th century. After that the demand has been increasing. Advertising is, in fact, the most influential and powerful medium in the present commercial society. It creates an entire worldview, shaping our attitude and beliefs.

Advertisements pervade every aspect of our life and most of us are hardly aware of it. In the movement for equal status and fair treatment to women, an important part is attributed to the mass media, particularly to electronic media. The central position of media in daily life ensures its role in advertising business. The meanings that are created by media are not fixed, but they vary according to cultural, historical and social context of the people concerned. The common man judges the products on the basis of the understanding his society and culture has inculcated into them. Symbolism is one of the major aspects of advertisement and it is to be noted that a change has occurred in this context. Use of women to promote a concept or product is increasing day by day. In the advertisement world, advertisers have picked up women for advertising of consumer commodities. Women are used in TV commercials as weapon of persuasion. Women in many cultures make the majority of consumption decisions; hence they are important target of these advertisers. So the advertisers find it easier to sell the product by using the same gender. But most of these ads hardly need women as models. For example, there is no need to ask females to do an ad for a mens shaving cream. The list is uncountable. Most of the companies want to attract the consumers by using the physical look of the models. They have created a world of fantasy. And we are drawn towards that world without realizing much about the realities of life. We try to imitate whatever is shown on the Television. The media must play the role of a watchdog in such a situation.

1.1.2.2 Types of advertising

Virtually any medium can be used for advertising. Commercial advertising media can include a wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web

popup, skywriting, bus stop benches, human billboards, magazines, newspapers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

Television
The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3 million (as of 2009). The majorities of television commercials feature a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none exist in real-life. Virtual product placement is also possible.

Infomercials An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" is a portmanteau of the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone
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number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.

Radio advertising
Radio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcasted as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the obvious limitation of being restricted to sound, this becomes its major disadvantage.

Press advertising
Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service.

Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.

Billboard advertising
Billboards are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large
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amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums. Mobile billboard advertising The Redeye newspaper advertised to its target market at North Avenue Beach with a sailboat billboard on Lake Michigan. Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially-equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including:

Target advertising One-day, and long-term campaigns Conventions Sporting events Store openings and similar promotional events Big advertisements from smaller companies Others

In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters, eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.

Covert advertising
Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgaria logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most obvious product placement; the whole film stops to show a Coca-Cola billboard

Celebrities
This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products, for example, when celebrities share their favorite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. The use of celebrities to endorse a brand can have its downsides, however. One mistake by a celebrity can be detrimental to the public relations of a brand. For example, following his

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performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to associate with him after he was photographed smoking marijuana

1.1.2.3 Recent Trends in Advertising

Internet Advertising
Internet Marketing is the online advertisement and selling of products, services or businesses through the Internet. Online advertising is possible only if one has its own website. Having a website for a particular business is worthless until and unless people know about your business and put their trust and likings on services that you provide. So, having a website is just like having a shop, if people find you, they obviously visit it, and visit it again if they find it really interesting.

Mobile Advertising
Mobile advertising in India is at a very nascent stage compared to markets like Japan, Korea and West, but many are reported to be preparing to get into the act. The future for mobile advertising is already here, despite not being on many marketers radars yet. Hundreds of millions of ads are already being run, click-through rates are much higher than online. The growth of 3G networks, IPTV and high end gaming on mobile phones will open new avenues for advertising on mobile.

Freelance advertising
In freelance advertising, companies hold public competitions to create ads for their product, the best one of which is chosen for widespread distribution with a prize given to the winner(s). During the 2007 Super Bowl, Pepsico held such a contest for the creation of a 30-second television ad for the Doritos brand of chips, offering a cash prize to the winner. Chevrolet held a similar competition for their Tahoe line of SUVs. This type of advertising, however, is still in
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its infancy. It may ultimately decrease the importance of advertising agencies by creating a niche for independent freelancers.

Embedded advertising
Embedded advertising or in-film ad placements are happening on a larger scale now than ever before. Films like Krish had over a dozen placements including Lays, Bournvita, Samsung, Faber Castell and Hero Honda. Shift in Message from Product Features to Consumer Benefits A common rule in the advertising industry is the one message strategy. In short, it is based on the premise that one unique selling proposition (USP) is effective. This reflects concerns over how communicating a multitude of messages in a single advertisement may easily distract consumers and cause difficulties in understanding the underlying message, thus weakening the advertisements effects. So, a common and frequently made mistake made in current commercials is that they often end up communicating product features while obscuring their message and emphasizing technological prowess. In particular, this trend was noticeable in industries where technological capability was a differentiating point and complex functions were the competitive edge.

1.1.2.4 Role of Advertising

Advertising is the means by which goods or services are promoted to the public. The advertisers goal is to increase sales of these goods or services by drawing peoples attention to them and showing them in a favorable light. The mission of advertiser 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.

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For advertising to exist, a number of factors have to be in place The goods and services to be advertised Competition between different providers of the same kinds of goods and services, for which there needs to be a significant potential market The means of advertising cheaply to large numbers of people A population with sufficient education to be able to understand advertising messages Advertising is a marketing function, and Kotler claims that advertising can have a number of different, possible objectives. One objective can be to inform customers about new product or a price change. The main objective here is to build primary demand. Another objective can be to persuade the customer to purchase the product. The use advertising as a way to build preference and to encourage customers to change brand. The fundamental purpose of advertising is to influence people to purchase various goods and products. In this sense advertising is a phenomenon that aims to persuade or influence people. What is the role of advertising in the demand function? One response of this question is that a company can sell more of its product by informing consumers about the product. The information may include its existence, price, promotion, quality, etc. Therefore advertising is seen as providing information to consumers. The other response is that advertising searches the way of persuading consumers to purchase the advertised products by appeals to snobbery, associations of the product with favored people or situations, repetition of the same message and so on. Advertising shows the last style and the new popular products in the market. It displays ideal individuals wearing the new clothes and looking good. Customers are jealous of this perfection. So that, they go out and purchase in hopes of reaching perfection. There is a time dimension at advertising. Advertisements influence on sales is immediate (i.e. it is mostly felt within seven days of an advertisements exposure). A repetition of such effects, measured at the end of a year, amounts to a medium-term influence. The immediate influence of advertising on sales plays a gatekeeper role to all further effects.
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Without it there will not be medium term effect (i.e. a repetition of short-term effects); and long-term effect. Advertisements full effect can be only valued if its long-term influence is taken into account as well as its short and medium-term effects on sales. These terms make it possible to evaluate the productivity of an advertising campaign; to measure if the campaign shows a financial return on the investment and is thus accountable

1.1.3 INDIAN ADVERTISING INDUSTRY

The Indian advertising industry is talking business today. It has evolved from being a smallscale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in very little time has carved a niche for itself and placed itself on the global map. Indian advertising industry with an estimated value of 13, 200-crore has set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds that the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of advertising. Advertising agencies in the country too have taken a leap. They have come a long way from being small and medium sized industries to becoming well known brands in the business. Mudra, Ogilvy and Mather (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top agencies of the country. Indian economy is on a boom and the market is on a continuous trail of expansion. With the market gaining grounds Indian advertising has every reason to celebrate. Businesses are looking up to advertising as a tool to cash in on lucrative business opportunities. Growth in business has lead to a consecutive boom in the advertising industry as well.

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The Indian advertising today handles both national and international projects. This is primarily because of the reason that the industry offers a host of functions to its clients that include everything from start to finish that include client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and public relation services. Keeping in mind the current pace at which the Indian advertising industry is moving the industry is expected to witness a major boom in the times ahead. If the experts are to be believed then the industry in the coming times will form a major contribution to the GDP. With all this there is definitely no looking back for the Indian advertising industry that is all set to win accolades from the world over. With development in the technology, various avenues are opening up in advertising industry. It is estimated that about 2.2 billion dollars are generated in this industry every year. Be it is print, radio, television or Internet, every medium plays a significant role in the growth of this industry. Today, Advertising Industry in India is surging with revenues. To meet all the demands in adverting sector, many agencies are coming to the scene. India is a hub of creativity and this is evident from the fact that more and more people from Indian advertising industry are being accepted world over and imposing a lot of respect in international advertising community. Visibility is the mantra of success these days and advertising makes sure that your product, service is visible; thus saleable. Today Advertising Industry in India is booming with revenue. It is a very successful industry which generates lot of revenue. The Advertising Industry in India is getting recognized worldwide with its superior quality work and innovation. It ensures tremendous growth and scope for the employees. During fiscal 2005, the gross advertising spend in India is estimated at Rs 111 billion, and is expected to grow at 14.2% to reach Rs. 127 billion by fiscal 2006.

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The key factors which have contributed to growth of the Indian advertising industry include: - Growth in media vehicles leading to increase in media infiltration. - Higher degree of competitive concentration among consumer companies - Entry of global consumer companies with large advertising budgets - Increase in consumer riches. Rapid economic growth of the country on the back of economic liberalization and deregulation. Indian advertising industry is fast catching up with their western counterparts. The change has been a slow and steady one, but if you look at the advertisements on Indian television nowadays, youll be vastly surprised. There were times, when it was believed that sex sells anything and everything. Then came the era of glamour and celebrities. Film stars and cricketers were roped it to sell softdrinks to massage oils. Ads were made for cycles and pens. The list is endless. Now, the times have changed. Humor, industry experts say, sells the best. People remember jokes, the humor involved, and it becomes easier to make an impact on the customer. The Indian consumer no longer falls into an uneducated, easy to please.

1.1.4 CHILDREN & ADVERTISING 1.1.4.1 Introduction

Advertising to children is the act of marketing or advertising products or services to children, as defined by national legislation and advertising standards. Advertising to children is often the subject of debate, relating to the alleged influence on childrens consumption. Rules on advertising to children have largely evolved in recent years. In most countries, advertising for children is now framed by a mix of legislation and advertising self-regulation. In the 1940s and 1950s children were not considered consumers in their own right but only extensions to their parents purchasing power. With the advent of television and other mass
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media, children have come into their own right as consumers and, consequently, they have become an important target market for the business. Advertisers are the first to recognize childrens value as consumers who are capable of making decisions about spending. The 1950s dates the modern era of children's television programming, when a deal between struggling television network ABC and Disney brought The Mickey Mouse Club and Disneyland into children's afternoon television programming. Advertising at that time appealed generally to the personal gain of the consumer in the case they decided to purchase the sponsored product. Over the next 15 to 20 years, children's television became an industry by itself. Four types of products advertised to children during the 1970s were limited: toys, cereals, candies and snacks, and fast foods. Male voiceovers accounted for the great majority of ads coded, and animated characters seldom appeared (Barcus in Tseng, Eliana Shiao; 2004). While marketers and advertisers heightened their interest in the child market during the 1980s, research on children's television advertising of that period consisted mainly on replications and extensions of previous studies (Tseng, 2004). As many authors states, there are many television advertisements based on children and it is faced that children urge their parents to purchase what they want without needing. For a whole generation of new age children, television is as influential as a parent or a teacher (Panwar, 2006). According to Wiman (1986), children who talk with their parents more frequently about TV advertising and commercials make more purchase requests. Children considered television to be one of lifes necessities. Studies commissioned by cable television networks in USA, found that an average of 43 per cent of total purchases made by parents were influenced by children (Cooper in Caruana, and Vassallo; 2003). Exposure to it was usually extensive before school, after school, during homework, at weekends, with or without friends (Hanley, 2000). Marketers understand this fact very well. With the growing influence of media on children, an increasingly large number of advertisements are today directed to them (Panwar, Agnihotri, 2006). Children, for example, who come from disadvantaged backgrounds, or those who have less access to their parents may not only spend more time with the media. But, may continue to rely more heavily on TV advertising for the information that they seek in various areas (Brown,
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Childers, Bauman and Koch in Evra; 1995). Parents create direct opportunities by interacting with their children about purchase requests, giving them pocket money and taking them to shopping excursions (Ward, Wackman, and Wartella; 1977). Children spend a large amount of time watching television. They pay more attention to commercials broadcast during childrens programming. Commercials broadcast during childrens programming are designed to capture the younger childs attention by the use of cartoon characters, music, subjective camera angles and editing (Stern & Harmon, 1986). According to The Guardian newspaper, McDonalds, and Coca Cola spent respectively 34,6 million USD and 16,2 million USD for television advertisement presented for children. In this situation, firms do not hesitate to spend their money for the related advertisements. Therefore nowadays the expenditure of these advertisements has been increased dramatically such as McDonalds and Coca Cola as well as Disney. They are the best known brand in the world. It can be drawn conclusion from here that the role of children as consumer on the worlds economy has rapidly increased. The common features of the above mentioned brands are easily to find and focus on children and family in their advertisements. According to McNeal (1992) American children spent over USD 132 billion on 62 product categories of products were influenced by children. The number of commercials per hour on American television increased significantly towards the end of the decade. They provide a strong indication that American children are today exposed to more than 25 000 commercials per year via television (Kunkel & Roberts 1991). In 1997, $1,3 billion was spent on television advertisements directed at children. Counting all media, advertising and marketing budgets aimed at children approached $12 billion (McNeal, 1999). It is estimated that children may view as many as 40,000 commercials each year (Strasburger, 2001). In one of the research project about the influence of television advertising on children and teenagers, Hanley (2000) found that the younger children (aged 911) were very vague in their recall of current television advertising. The examples they came up with were often unbranded, with the recall attached to the story. or characters instead, e.g. Honey Monster (Sugar Puffs), cartoon elephant (Charmin toilet roll). Older children (aged 1216) recalled advertising they enjoyed or disliked. The appeal often related to the storyline., characters featured or the product. For instance, they mentioned Rolo (elephant never forgets), as well as KitKat, Argos (toys), and
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McDonald.s. They identified three main ways in which television advertising seemed to influence children: pester power; Many parents felt that advertising had the power to make a significant impression on their children. Those featuring children, cartoon characters, animals, catchy. tunes and phrases, colour, dynamic special effects, aspirational celebrity heroes, humor and childrens products (e.g. confectionery, cereals and toys) were most likely to be referred to: www.itc.org.uk Generally advertisers use interesting characters in their advertisement to catch childrens attention. Sometimes these characters are not real. For example Corn Flakes, Nesquick advertisements and etc (Hanley, 2000). It was very common for the advertiser to show ads in which the child would acquire superhuman strength by eating a specific breakfast cereal, or would leave a group of friends in choking clouds of dust by running with the sponsored sneakers. Toys ads of that time were sponsored by unknown brands, which would generally end up becoming famous after making deals with the television station (Alexander et al; 1998). Childrens ages are also significant to understand the advertisements. Childrens comprehension of television advertising and its persuasive intent increases with age, because of greater cognitive maturity and increased experience with the medium. Even a majority of 5-8 years old have only a low awareness of what a commercial really is; and although three quarters of 9-12 year old children may demonstrate a medium level of awareness (eg. commercials tell you what to buy) (Ward & Wackman in Evra; 1995). However it is possible to say that even though they are very young to understand, the most important thing is the advertisements impact on children. De Bens and Vandenbruaene (1992 pg 27) conveys that childrens attention is affected depending on whether they are watching TV alone, with their parents or with other children of the same age. Children.s attention depends on whether they are playing, eating or occupied with something else while watching TV. Generally it is assumed that these factors contribute to reducing childrens attention to TV advertising (De Bens and Vandenbruaene, 1992). In less developed countries the trend appears to follow the same pattern as in the developed world, although the market size may be comparatively small. Increasingly, children have become not passive observers, but active participants in the family purchase decisions. Not only do children have their own money to spend on a variety of products and services of
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their choice, they also have extensive influence on how their parents buy products and services (Wimalasiri, 2004). Advertising offers consumer ideas and information, which we process and evaluate in order to make rational choices. Brown (2004) defends advertising to children on just such cognitive grounds: Children are young consumers, interested in making choices and needing information about them.

1.1.4.2 How Children Process Advertisements

To be effective, marketing campaigns must get children to attend to the message, desire a specific product, recognize and remember that product, and purchase it. How well children understand the persuasive intent of advertisements also affects the success of commercials. Attention. Commercials that are designed to attract and hold childrens attention are characterized by lively action, sound effects, and loud music. The animated character Tony the Tiger, for example, bursts onto the screen, proclaiming that Kelloggs Frosted Flakes are GRRRRRREAT!! One study found that preschoolers paid more attention to commercials full of action, sound effects, and loud music than to more low-key commercials. Audio features are particularly important in gaining childrens attention. Another study found that children aged three to eight were more attentive to commercials that were higher in audio than in video complexity. Audio features have more recruiting power than visual features because interesting sounds can get children who are not looking at the television screen to direct their visual attention to it. These findings are consistent with Piagets insight that young children are especially focused on the attention-getting perceptual qualities of presentations. Childrens patterns of attention help reveal how well they can make distinctions between the commercial and the television program. In one study, researchers trained mothers to examine their childrens visual attention to Saturday morning cartoons and advertisements. The mothers reported that the younger children

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(five to eight) continued to pay attention when a commercial came on but that children older than eight looked away. The older childrens awareness of the break in the content suggests that they are less susceptible than the younger children to the effects of advertising. Recognition and retention. Advertisers use visual and auditory production techniques and repetition to enhance childrens memory of the content. One study found that preschool, kindergarten, and second-grade children remembered food products that had been advertised audio visually or visually better than they remembered products presented in an audio version only. Advertisers use catchy auditory features, such as jingles, repetitively in commercials to reach child audiences. Song lyrics and rhymes can replay in childrens heads, leading to automatic rehearsal and memory of content. When children are shown the same commercial repeatedly, they are more likely to remember the product advertised. Repetition also undermines childrens, even older childrens, defenses against product messages. Comprehension of commercial intent. As noted, children younger than age eight do not understand that the intent of commercials is to persuade them to buy one product over another; instead they see commercials as a means of informing them about the vast number of attractive products that they can buy. In a key study demonstrating the developmental advance during middle childhood, Thomas Robertson and John Rossiter questioned first-, third-, and fifth-grade boys about their understanding of commercials. Only half of the first-grade boys understood the persuasive intent of commercials, as against 87 percent of third graders and 99 percent of fifth graders. Product requests and purchases. What aspects of exposure to commercial messages lead to product requests? Researchers have found that repetition, in particular, increases childrens requests for, and purchases of, specific food, beverage, and toy products. One study, for example, measured three- to eleven-year-old childrens overall exposure to advertisements at home and to specific advertisements in their laboratory. They then had children visit a mock grocery store with a parent. Children who were
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exposed to more overall advertisements at home and who were most attentive to advertisements in the laboratory setting made the most requests for the advertised products. Premiumsbonus toys and treats that accompany the productalso increase childrens product requests. For instance, Charles Aitkin found that 81 percent of mothers thought that premiums influenced their childrens cereal selections. The more children watched Saturday morning television programs, which are saturated with cereal commercials, the more children wanted the cereals that contained premiums. Free downloads such as screen savers serve similar functions in newer technologies, but researchers have not yet fully examined the effects of such practices.

1.1.4.3 Scope and Form

Advertising to children can take place on traditional media television, radio and print as well as new media (internet and other electronic media). Packaging, in-store advertising, event sponsorship and promotions can also be means to advertise to children. There is no universal definition of a child (although UNESCO - the United Nations Educational, Scientific and Cultural Organization, defines early childhood as ages 0 8 years). Children are otherwise defined according to national jurisdictions. For the purposes of advertising law, the definition of a child varies from one jurisdiction to another. However, 12 is commonly used as a cut-off point, on the basis of the widespread academic view that by the age of 12 children have developed their behavior as consumers, effectively recognize advertising and are able to adopt critical attitudes towards it. There is no global data on ad spending directed at children, only data for specific sectors. According to the Federal Trade Commission, food and beverage companies (44 companies reporting to the FTC) in the US spent approximately $1.6 billion in 2006 to promote their products/services to children.

1.1.5 TV Advertising & Children in India

More than half of television viewers in India today are children of below 15 years. And yet there is hardly any sensitivity about the relevance and impact of what is dished out by various television channels. All of them are operating in a competitive mode for one upmanship
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in the race for viewership. In this order channels are concerned more about what interests or attracts rather than what is in the interest of children. Neither the Government nor the parents or the teachers seems to be concerned about this situation. For, the generation next and the civil society of the country is shaped and molded by what they are exposed to today on the idiot-box day in and day out. Research studies over the years world over; have brought out various types of negative impact of intense viewing of television by children. The direct influence of TV viewing on the extent of violence and deviant behavior pattern of children has been reiterated even in India. In fact, there are a couple of confessions by adolescents, even a biography, as to how they picked up ideas about a rape or robbery or revenge or killing or suicide or kidnap, etc from one or other TV programme. Even some court judgments have commented on such effect of TV programmes. That TV has a double-edged effect and that it is the negative character which impacts more than positive potential often is known. But what is not realized is that there are no serious efforts to explore positive virtues of TV and that parents who should be more concerned about such a phenomena hardly do anything about it. In fact, studies have brought out, for example, that in Punjab and Uttar Pradesh, parents enjoy the same fare of TV along with their children and as keenly; where as in Tamil Nadu and West Bengal, parents try to restrain their children in favor of some discriminative viewing. Teachers and social activists in a couple of places have been occasionally demonstrating about the influence of television contents. Political parties too do not seem to be concerned to do something about. BJP, however, had referred to this adverse trend in its election manifesto a few years ago. But did nothing on coming to power. Even the code for advertising, although outdated and inadequate, is conscious of implications to children of certain broadcasts and realizes the scope for misuse. For example, under the code no advertisements should be accepted which lures children to believe that if they do not own or use the product advertised they will be inferior to other children or that they are liable to ridicule for not owning or using a particular brand. However, in reality there is neither strict monitoring of the advertisements nor a rigid follow-up despite that many ads on television

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fall under this category. And most of these childrens channels have become marketing outlets for brands altogether to India. Against this background and in this context there are certain recent trends on the Indian TV scene, which need to be taken note. More and more channels are going for childrens programmes. In fact, more channels are coming in describing themselves as childrens channel or positioning themselves as such. Most of these are beamed into the country as if no one in the country, the Government the least, is concerned about such a trend. What is not taken note is that: (a) Most of these childrens channels and programmes are of foreign origin or remake of them and are reruns over the years, (b) They do not have anything to do with enrichment or supplementary scope for school education or imparting moral standards (there are of course some good pre-school programmes); (c) Some of these foreign channels are now entering their second phase in the country taking to marketing of toys and tools for children promoted in these serials. And, worse, as a result of all this, there has been a decline recently in the extent of locally originated programmes for children even in Indian channels. To complicate the matter further these foreign programmes for children are now being dubbed into Indian languages. There are international lobbies operating aggressively to thrust upon animation serials for children on countries like India. That is how today cartoons have become synonymous for Childrens TV. Most of these serials are produced after so much research. But not for ensuring educational or general knowledge aspects but for capturing and retaining eyeballs of children again and again and to see their serials have certain dope-effect on children. This recent launch of DTH services in a competitive mode brings out the urgency for Government take a view of this proliferation of uninhibited foreign fare for children and doing something about it so that television is also used with more concern and for positive ends.

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The least the Government should do is to prescribe that every channel being down linked must have certain percent of locally produced and originating programmes for children. In fact, in the case of children channels, this percentage of locally originated programmes has to be higher. Canada and European Union countries have one or other provisions in this regard. If France has prescribed 30 percent of contents of channels should be locally originated, India should go for a higher percentage, not less. India has a rich tradition of enriching children with folk tales and grandma tales and imparting values and imparting discipline and moral values in an entertaining format. When some of us advocated and argued a couple of decades ago for expansion of TV network in the country and for going for color television, one hope was that childrens fare will get some priority and all that treasure of India gets a chance to figure. But what is happening now is contrary. The exceptions are only a few. For, there is a decline in the extent of childrens participation even in national channels. The best specific examples of course are Malguidi Days, Panchatantra, Tenaliraman and the like. Realizing these strengths of Indian tradition, some foreign producers are scouting in India to capture talent for television, particularly in animation format. But what about our own initiatives? We do not seem to learn from our experiences. All India Radio in the earlier years has set good examples for childrens programmes, which were enriching as well as entertaining and supplementary to school education. In fact, the format of those AIR programmes was such that they were participatory and empowering confidence and courage building in children and respect for elders and environment. Today most imported childrens programmes are all out to promote materialism, selfishness, consumerism and at any cost approach to life. Realizing the significance of media in the context of children, a few years ago UN has prescribed annual day for mass media when children are supposed to be the producers of media contents. It is a good symbolic initiative. But it should be followed up by some support to promote creative TV software for children of 6 12 age groups, in particular. For, there is UN Convention on Rights of Child with a set of standards to promote well being of children. Unfortunately, there is no public trust or foundation of civil society in India for this purpose.

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Even Public Service Broadcasting Trust, which is a good initiative otherwise, is yet to be concerned about childrens interests. It is most unfortunate that neither of the plethora of Government agencies claiming concern for children has taken note of this vacuum. Not even the Ministry of Information & Broadcasting. All this despite ample creative talents across the country to produce more positive, pro-active and relevant software for children than what is available now. regard. It is unfortunate that the Government has neither taken pro-active or re-active initiatives in this While we have a Childrens Film Society to promote films for children and a Childrens Book Trust, we have none for television despite the number of children who see television is several times more and, even more critically, the frequency of their viewing television is more than a couple of hours a day.

1.1.6 Marketing Promos Targeting Children

Children play an important role in the household decision making process by attempting to influence their parents acquisition, usage and disposition behavior. The most common is that children nag until their parents finally give in. Research finds that success of such attempts on the type of offering, characteristics of the parents, age of the child and stage of the process. Children are more likely to influence the parents for the purchase of child related products as cereals, cookies, snacks, car vacation and new computer technologies. For clothing and toys, children often use that argument that Everyone else has one and because parents want to avoid being identified as scrim piers they will often given in. Interestingly, children consistently overestimate how much influence they have in most of the decisions. Working and single parents on the other hand are more likely to give in because thay face more time pressures. Another important finding is that the older the child the more influence he/she will exert on the parents. Targeting Children

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Marketers are increasingly targeting the young children because of the influence that these kids have on their parents; buying decision. Advertisers are influencing the kids through various educational programs, games and certain other promotional events. The promos aim at increasing the brand visibility and developing an emotional connect with the kids. In India, kids have a considerable amount of demographic representation which marketers want to capitalize on. Marketers are targeting the kids because kids influence buying decisions, they exert pressure on the parents for a certain product purchase and they are the future adult consumers. A Bag of Contests from Marketers

Britania Jetix Power Your Rangers Contest

This was one of the biggest kids contest conducted in India. The kids were given a call by the rangers to save them from trouble by powering them through dinogems which was hid by the villains. The dinogems were hidden in the fort of evil and the map was destroyed. The kids through this contest had to put together and indentify the dinogems which ultimately powered the rangers. The contest was aired on the television channels every day. With every pack of Britania treat, one part of the map was given (fortress of Evil). The kids had to collect the dinogems. By the end of contest, the dinogems which was the power source of rangers. The entries could be through SMS, phone calls or by e-mails. Five lucky winners made a trip to New Zealand with their families. Fifty five other winners were given playStation and power ranger game. Besides, 10,000 quick gun prizes and Power your ranger bravery medals were also given.

Maggi Quiz contest

This contest was held for students of IV, V and VI classes and included questions on general knowledge and individual subjects. The first round was an intra school written quiz

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competition. The second round was an oral quiz round and for the winners of the first round. The final contest was conducted between six teams comprising of two students each. During these quiz round, audience questions were also asked. The winning team was given Maggie gift packets and the members of the audiences who participated in the quiz were given sample packs of Maggi.

1.1.7. Legal Implications

In India, there are no specific advertising laws that relate to children and food-related advertisements in particular. A host of laws and Acts like the 'Cable TV Networks (Regulation) Act, 1995' and the 'Infant Milk Substitutes, Feeding Bottles and Infant Food Act' deal with children-related advertising in a vague way. Not only are there advertisements that are targeted at children but a host of them that feature young children, even babies. In most parts of the world, there are few or no specific rules concerning food advertising to children beyond the rules which must apply to all advertising. In India, even general rules pertaining to advertising are very lax. Also, there are no regulatory bodies that monitor TV advertisements. Apart from the Ministry of Information and Broadcasting that decides to intervene when it wants to, there are only voluntary groups like the 'Advertising Agencies Association of India', and the 'Advertising Standards Council of India', both of which are business organizations and can only put moral pressure on advertisers and companies to withdraw objectionable advertisements. There is urgent need for voluntary and government pressure groups to seriously take note of the situation. The government needs to draft and implement laws that do not deal with advertising in general but are specific and relate to every aspect of advertising, especially those that target young children and pertain to food. In other parts of the world, there exist voluntary groups like the 'Adbusters' and 'Mothers groups' that watch and pressure governments to clamp down on aggressive and intrusive advertising. At

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present there are various laws implemented by government under various ministries. The various laws are as follows:

A. Prevention of Food Adulteration Act (Ministry of Health) The act lays down specifications for various food products. It is mandatory. B. Agriculture Produce (Grading & Marking) Act (Ministry of Rural Development) This Act is commonly known as AGMARK. The Act lays down the specifications for various agricultural commodities including some processed foods. C. Laws being operated by Bureau of Indian Standards (BIS) BIS is the standard body for formulating standards for various food items. These standards are also voluntary. D. Essential Commodities Act 1. Harmonization of Food Laws: It is very essential to have one unified and logical law for food regulation than having numerous laws for the same. Following action is being taken by various ministries at present: The paper brought out by The Ministry of Civil Supplies & Consumer Affairs, it is recommended for BIS to formulate standards for all food items in India, which is a good step towards harmonization. Part IV Advertising & Society International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 310 As per the task force set up by Prime minister under the chairmanship of Shri Nulsi Wadia, a suggestion has been made to set up a Food Regulation Authority (FRA) to formulate and update food standards for domestic and export market. Also,

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Harmonization of Indian standard with quality norms of Codex and WTO. Hence it is important that unified law is developed as early as possible.

1.1.7.2 Education and parental involvement

Parental involvement in determining desirable programming is the best choice. Parents have to monitor and control their childrens viewing habits. Studies show that parents play an important role in their childrens social learning, but if a parents views are not discussed explicitly with children, the medium may teach and influence by default. Other media, such as magazines, radio, video games and the Internet, also have the potential to influence childrens eating habits, exercise habits, buying habits and mental health. If children are allowed to be exposed to these media without adult supervision, they may have the same deleterious effects as television. People should be more aware to what kind of advertisement are shown to the children & when some company say that the product have nutritional value and stuff, it should be verified from the trusted source. Be an alert citizen is the message. Parents should be educated with respect to what should be healthy food as per proper nutritional intake for their children.

1.1.7.3 Role of schools

Schools can also play a very active role in making sure that students get healthy diet at its canteen. It is very important that schools do not stock junk food in their canteen, by getting lured by approach of fast food and soft drink companies to stock their stuff. Since children spend most of their time in school, schools can imbibe on childrens mind what a healthy diet should consists of.

1.1.7.4 Statutory Warning

Since the intake of junk food & carbonated drinks causes numerous diseases such as obesity, hypertension, cardiovascular diseases (CVDs), gall bladder ailments, cancer, psycho-social problems, breathlessness, sleep disorders, asthma, arthritis, weak bones and reproductive
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hormone abnormalities. So it should come with statutory warnings as in the case of junk food carbonated drinks & milk powder such as Intake of this food more than twice a week is not good for health.

1.1.7.5 Advertisement Code

Advertisement Code to be monitored by an organization which will take care of the following: Before any AD is aired on television, the most sought medium by children some code of conduct should be followed. Any food AD should be scrutinized with regards to the claims they are making & the food ingredients should meet some standards laid down by recognized organization like WHO. The stipulated time limit for advertisement is followed by the companies or not. TV Channels generally do not follow any rules regarding advertising air time. Doordarshan poses a limit on advertising time which is a maximum of 7.5 minutes of advertisements in a 30 minute programme. Private TV channels are free to air as many advertisements they like. This is primarily the reason why on some private channels, a 30-minute TV programme gets stretched to 45 minutes or even more.

1.1.7.6 Broadcasting codes for AIR/ Doordarshan

Advertising Code: AIR and Doordarshan has responsibility to ensure that the advertisements shown either in terms of contents, tone or treatment, do not mislead the listeners and viewers as well as the consumers are not repugnant to good taste. The earnings of commercial revenue are not the sole criteria of Part IV Advertising & Society International Marketing Conference on Marketing & Society, 8-10 April, 2007, IIMK 311

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Prasar Bharti. Thus the code has stricter provisions and the main features of the code are as follows: Tobacco products including 'Pan Masala' and liquors are not permitted. The goods and services advertised should be in consonance with the laws of the country enacted to protect the rights of the consumers. The commercial should never project a derogatory image of women and should not endanger the safety of children. Such code of conduct should be made compulsory to private channels also. Government has enacted The Commercial Advertisements on Electronic Media (Regulation) Bill, 2005 which lays down standards for advertisements on electronic media.. The government should indulge more into Social Advertising as its positive impact on kids & society is enormous. Laws related to Advertising should be made more stringent as in the case of foreign countries such as Europe & America.

1.1.8 Worldwide Regulation and criticism of Advertising to Children

In the United Kingdom, Greece, Denmark, and Belgium advertising to children is restricted and in Quebec, Sweden and Norway advertising to children under the age of 12 is illegal. The European Union also has framework legislation in place, which sets down minimum provisions on advertising to children for its 27 member States. The EU Audiovisual Media Services Directive, due to replace the Television without Frontiers Directive in all member states by the end of 2009, sets out several EU-wide rules on advertising and children: Advertising shall not cause moral or physical detriment to minors, and shall therefore comply with the following criteria for their protection: It shall not directly exhort minors to buy a product or a service by exploiting their inexperience or credulity;

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 It shall not directly encourage minors to persuade their parents or others to purchase the goods or services being advertised; It shall not exploit the special trust minors place in parents, teachers or other persons; Childrens programmes may only be interrupted if the scheduled duration is longer than 30 minutes Product placement is not allowed in childrens programmes. The Member States and the Commission should encourage audiovisual media service providers to develop codes of conduct regarding the advertising of certain foods in childrens programmes. In the United States the Federal Trade Commission studied the issue of advertising to children in the 1970s and they restricted advertising to children. One of the main areas of regulation facing fast food companies is the advertising of "junk food" to children. In the United Kingdom, the Children's Food Bill is intended to highly regulate the advertising of such food aimed at children, and many other countries are looking to introduce strict limitations on fast food advertising. Talks between the Food Standards Agency (FSA) and the fast food companies were initiated to work together in an effort to improve children's diets, though Burger King withdrew from the discussions. Some organizations have called for the watershed to apply to various unhealthy foodstuffs, including fast food. In June 2006, the FSA called for laws to prevent such food from being advertised on television before 9pm. They also called for the disassociation of television and film characters from fast food and stopping celebrities from appearing in such advertisements. The impact of such campaigns is often denied by the fast food companies and the television networks that carry their advertisements. Some networks have also said that tighter regulations would reduce advertising income and that would have a negative impact on the quality of children's programming. In Sweden all advertising aimed at the under-12s is banned, including fast food adverts.

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Faced with stricter television, radio and print regulation, many fast food companies have started making use of Internet advertising to reach their customers.The accuracy of the images of food used by the fast food companies is regularly called into question. The actual product is often described as being of poorer quality to that represented in the image. On 3 June 2004 KFC withdrew American television commercials claiming that "fried chicken can, in fact, be part of a healthy diet" after reaching a settlement with the Federal Trade Commission. Fast food advertising is often complained about to advertising authorities, with members of the public most usually claiming that the wording is misleading. Not all the complaints are upheld. For example, between 11 September 2002 and 24 March 2004 the Advertising Standards Authority (ASA) in the UK investigated complaints about six McDonald's advertisements, with two of them being upheld. The ASA used one of the upheld complaints as a case study. In 2006 the European Union passed a new law regarding the labeling of foods - any food with a nutritional claim (such as "low fat") must also highlight that it is high in something else (such as "high salt") if that is the case. While fast food is often not given a traditional label, this may have an impact on advertising. In November 2006, the Office of Communications (Ofcom) announced that it would ban television adverts for junk food before, during and after television programming aimed at under-16s in the United Kingdom. These regulations were originally outlined in a proposal earlier in the year. This move has been criticized on both ends of the scale; while the Food and Drink Federation labeled the ban "over the top", others have said the restrictions do not go far enough (particularly due to the fact that soap operas would be exempt from the ban). On 1 April 2007, junk food advertisements were banned from programmes aimed at four to nine-year-olds. Such adverts broadcast during programmes "aimed at, or which would appeal to," ten to fifteenyear-olds will continue to be phased out over the coming months, with a full ban coming into effect on 1 January 2009.

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1.2

Rationale of Study

Through this report we want to find out how children are influenced by the advertisements and buying capacity of parents especially of confectionary products. So the statement of this project would be Impact of Advertisements on Children and various factors influencing the buying behavior with special reference to confectionary products. The research process goes within the following confectionary products: Biscuits Chocolates Noodles Sauces Health Drinks

1.3 Objectives of study:

The subject matter for this Project is to study the effects of advertisement on children. Following are the main objectives of this report. To know the children's awareness about confectionary Products & their advertisements. To study the impact of advertisement of confectionary Products on children. To know whether is there any connection between TV watching habit of children and their medium of study or not. To find out the effect of children obstinate on buying capacity of parents.

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CHAPTER 2 REVIEW OF LITERATURE

Throughout this history of children's television advertising, researchers have criticized in different ways the use of television commercials directed to children (Tseng, 2004). In the late 1970s, a research team funded by National Science Foundation (NSF) estimated that children viewed an average of about 20,000. - Commercials per year (Adler in Singer, 2001). There was so little study on this topic during the 1950s, the majority of the studies on children's television advertising environment goes from the 1970s onward (Alexander et al. 1998). Childrens television advertising is rapidly becoming a major concern to government agencies, citizens. groups and researchers in many areas of the social sciences ( Resnik, Stern and Alberty; 1979).Children who watch a lot of television, want more toys seen in advertisements and eat more advertised food than children who do not watch as much television (Strasburger, 2002). Children also urge their parents and friends to be sure to watch certain commercials (Fox in Jarlbo, 2000). According to (Resnik, Stern and Alberty, 1979), television advertising and its effect on consumption patterns, values, and social interaction have been hotly debated for many years. But only recently has the controversy focused on its differential impact on special interest groups- the elderly, minorities and children. If children saw something new in a television advertisement or in a magazine that they liked they were likely to buy it. This is in line with Buijzen and Valkenburg.s (2003) findings that advertising is positively and directly related to childrens purchase requests. McGee in Beder (1998, pg 100) says children under aged 12 spend more
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than $11 billion of their own money and influence family spending decisions worth another $165 billion on food, household items like furniture, electrical appliances and computers, vacations, the family car and other spending. For example, one study estimated that children influenced $9 billion worth of car sales in 1994. One car dealer explains: "Sometimes, the child literally is our customer. I have watched the child pick out the car."(Stanley in Beder, 1998, pg 102). Relatively little work examines just what aspects of the advertisements influence children, though it is likely that different persuasive appeals are effective for children and teens. Valkenbrg (2004) offers a standard summary of the empirical literature when she points to the following characteristics that evidence has shown to increase advertising effects: Repetition of the advertisement; (2) the use of peer popularity appeal; (3) offering a premium (gift); (4) celebrity endorsement; (5) host selling, and (6) visual cues on packaging. As Achenreiner and John (2003) show in their experiment, by the age of 12, children are highly aware of and make use of, brand names as a cue in consumer judgments. In July 2007, 10 of these companies (now 13) announced a common pledge in the US the Childrens Food and Beverage Advertising Initiative, mirroring a similar initiative by 15 companies in Canada the Canadian Childrens Food & Beverage Advertising Initiative; and followed by 11 companies in Europe with the EU Pledge. Under these initiatives, participating companies will cease advertising to children under 12, other than products that meet specific nutritional guidelines, based on international scientific recommendations. A similar Pledge programme was launched by leading food companied in Thailand in May 2008 and in Australia in mid-2009

Taste
The 1974 Pepsi Challenge demonstrated that visual cues such as packaging and a brands logo can influence consumers product preference and perceptions (Foley, 1994). In any blinded taste test of this kind consumers have to evaluate products solely on their perceptions of the products intrinsic cues, such as taste, texture, or aroma. For instance, consumers have limited ability to pick their preferred beer brands given no brand cues (Allison & Uhl, 1964). In contrast, some research indicates that consumers can discriminate systematically among brands using only taste and aroma cues (Uhl & Mauser, 1979; Jacoby et al., 1971). However, it is widely accepted that consumers in low involvement situations tend to use extrinsic cues rather than intrinsic attributes of

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the product to make product choices (Petty et al., 1983). As a result, in a blinded taste test involving soy, we expect that consumers would overrely on the soy label and let this influence their preferences, perceptions, and taste toward the product.
Andre Torres Urdan, Getulio Vargas Foundation (FGV), In a very frequent buying

situation, consumers have to choose among products with very similar intrinsic attributes. Under these conditions they must rely mainly on extrinsic product attributes. The authors examine the relative importance of brand, an extrinsic attribute, and an intrinsic attribute, on consumers buying intentions. The research involved 180 consumers, young undergraduate students, from a major metropolitan area in Brazil, who were each asked to declare their intentions to buy among four national beer brands with similar quality and price levels prior and after a blind taste test. Findings indicate: 1) a very strong preference for one of the brands prior the test but the subjects were unable to distinguish their preferred brand from the others in the blind taste test; 2) that subjects are not aware about the factors directing their choice of a product; 3) that differences in subjects' preferences due to brand name are much higher than those they indicate due to beers tastes. These results suggests a strong effect of brand name on consumers' buying intentions.

Elder and Krishna (2010), explore the ability of advertisements to elicit sensory

related during cognitions and ultimately affect sensory experience. Across a series of three studies they found that multisensory ads lead to more positive sensory thoughts during a consumption experience and ultimately results in higher evaluated taste of the products. Furthermore, the studies show that advertising can have a significant impact not only on pre-purchase attitudes and purchase intentions, but also on the consumption experience.

Packaging:
Katie Chodil, Courtney Meyers, Department of Agricultural Education and Communication University of Florida, Price and taste attributes can play a significant role in the consumers decision to purchase organic or natural products. As Jaeger (2006) found, it is valuable to integrate taste in marketing communications strategies. Based on the results of this study, food marketers should consider integrating point of purchase sampling, or developing labeling and marketing materials that appeal to and emphasize how the product tastes.

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 Design involves a number of important considerations ranging from the specification of product components and functional concerns, to the external and aesthetic aspects of the product/ packaging providing brand-consumer touch points. Although there is a range of work that addresses design issues, it does not yet comprise a substantial, wellformulated body of research (Veryzer, 1999). Relevant work is scattered among the psychology, perception, semiotics, human factors, marketing, and industrial design literatures, as well as others. (Bertrand, 2002; Spethmann, 2003),Consistent with this perspective, trade journals such as Brand Week, Brand Packaging, Beverage World and Promo identify several managerial trends suggesting a growing brand communication role for packaging. Indications of these roles include an increase in nondurable product buying decisions at the store shelf, a reduction in spending on traditional brand-building mass-media advertising, and growing managerial recognition of the capacity of packaging to create differentiation and identity for relatively homogeneous consumer nondurables). Much of the research on labeling has focused on how consumers use nutrition labels (Bender & Derby, 1992; Feick et al., 1986; Jacoby et al., 1977) . For instance, Moorman (1990) studied how consumer characteristics (e.g., familiarity and enduring motivation) and stimulus characteristics (e.g., information format and content) influenced the utilization of nutrition information. Not surprising, higher levels of knowledge and awareness were found to have a positive main effect on information acquisition from nutrition label reading (Derby & Fein, 1994; Moorman & Matulich, 1993). According to Szykmans (1997) proposed conceptual model of the use of nutrition labels and on-package claims, knowledge, perceived diet effectiveness, health status, and skepticism toward claims are all hypothesized to be significant in explaining the use of package claims and nutrition labels. On-package health claims and nutrition label information appear have independent effects on consumption. For example, packages with health claims were perceived as significantly more heart healthy than packages without health claims regardless of the nutrition information provided or the format used (Ford, 1994). Nutrition labeling is also important, however, since it may affect consumers perceptions of product quality and preference (Asam & Bucklin, 1973). As such, we expect that soy labeling may influence consumers preferences for and perceptions of a product as well as taste expectations. However, food labels also can play important third-party roles in the food marketing system through their impacts on product design, advertising, consumer confidence in food quality, and consumer education on diet and health (Caswell & Padberg, 1992). Thus, marketers should note on-going changes in the current levels of information on and use of food labels, in the new regulatory environment related to food labels, and in the strategic responses of food producers, processors, distributors, and consumers as

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well because food labels can signal product quality and shape new consumer knowledge, purchasing, and usage patterns (Caswell, 1992; Caswell & Mojduszka, 1996).

Promotions
Demographics were the first variables employed to identify the frequent users of sales promotions, with few, if any, conclusive results. The effect of income is not clear (Blattberg and Neslin 1990, pp. 73-76). As a result, the more recent studies have relied on: (a) perceived risk theory (Bauer 1960); (b) economic theory; or (c) psychographics (Tables 1-3, respectively). Overall, these studies have sketched a rather coherent portrait of the frequent users of promotions: they are price sensitive; receptive to price and promotion information; brand switchers; and heavy buyers of the category. Besides, they change and accelerate their purchases in reaction to sales promotions. These studies are also useful for, e.g. targeting the heavy users of promotions or deterring buyers from taking advantage of promotions. The economic model reviewed above predicts that such a penchant should not vary across product categories, since the costs associated with coupons are the same, and since it is in consumers' best interests to spread these costs over the maximum number of purchases (Bawa and hoemaker 1987fl). These authors find that, contrary to their original hypothesis, up to 31% of consumers use coupons in some product categories but not in others. Bawa et al. (1989) show that a single consumer experiences varied marketing environments in different stores which then translate into varying perception of and sensitivity to sales promotions. This study shows that promotional activity: the number of displays and the width of the assortment in the preferred store, are correlated with overall deal-proneness and price sensitivity. Familiarity with promotions is also employed, along with store familiarity and inventory level, to predict the "decision state" of a consumer on a particular shopping trip (Buckhn and Lattin 1991). Consumers adapt themselves to a changing marketing environment by employing various purchasing strategies (Tellis and Gaeth 1990), Currim and Schneider (1991) have established a typology of the purchasing strategies used by consumers when they encounter promotions on their preferred brands or on other brands (e.g. inertia, brand switching, stockpiling, etc). Of the five purchasing strategies mentioned in their study, two involve promotions: (a) passive deal-proneness (stockpiling of the preferred brand displayed); and (b) active deal-proneness (brand switching and purchase acceleration for any brand featured, or holding coupons). Their research shows that three out of four consumers use more than one purchasing strategy, at least one of which involves sales promotions. Another study by the same authors shows that active deal-prone consumers

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may become passively deal-prone but that the reverse is rare (Schneider and Currim 1991), They did not find any pure, i.e, not provoked by promotions, variety-seeking purchasing strategy because of data aggregation problems in household (in contrast to individual) panels (Kahn et al. 1986), or simply because this kind of behavior has become less frequent with the prevailing of sales promotions. This literature has shown that the diversity of promotion usage patterns between and within consumers can be partly explained by the perception of the costs and benefits of promotions, the most promising area for future research in the identification of frequent and infrequent users of promotions is in the use of psychographics. Smart-shopper selfconcept, role perception (homemaker pride) personality traits (need for cognition, need for variety) or other price-related Schemata have already been used in the theory-oriented literature (Cadoppo et al. 1984; Kahn and Louie 1990; Schindler 1992; Lichtenstein et al. 1993; Mittal 1994) , The feelings (fun, entertainment, anger) or moods created by many consumer promotions and the influence of such factors are other inter-researched areas that could improve our understanding of who exactly uses them. For instance, Simonson et al. (1994) found, in an experiment, that a "useless" premium may deter consumers from buying the brand when they know that they will need to justify their choice to others of their social group. There are probably individual differences in this phenomenon worth explaining. Finally, a very interesting direction is to enhance the explanatory power of demographics through the use of consumer self reports on "perceived busyness" or "perceived wellness" (Mittal 1994).

Price
Price is another form of attribute used by consumers to evaluate a product. Price can sometimes be an indicator of quality; with a higher price indicating higher quality (Mowen & Minor, 1998; Siu & Wong, 2002). Consumers perceive that a higher price can be attributed to the higher cost of quality control (Siu & Wong, 2002). Some consumers are highly price sensitive (elastic demand), whereby a high prices may shift consumers to competitive brands (Mowen & Minor, 1998). Therefore price can have a positive or negative influence on customers perception of product performance on the salient attributes is more important than actual performance (Mason & Bequette, 1998). Mowen and Minor (1998) suggested that marketing managers should know the attributes that consumers expect in a
41

product and how positively or negatively they rate these attributes to help develop and promote a successful product. Retailers need to be knowledgeable of the product attributes perceived as the most important by each individual consumer group in order to build and maintain market share (Warrington & Shim, 2000). It is the consumer who determines which attributes matter to them. Different consumer groups place different importance on different attributes (Warrington & Shim, 2000).It was found that consumers categorize as LP/SB (low product involvement/strong brand commitment) placed greater importance on product attributes and product orientations than LP/WB (weak brand commitment) consumers, which placed the most importance on price. Consumer buying behavior The need to understand consumer-buying behavior was identified in the marketing literature over fifty years ago (Clover 1950). Ever since, many researchers from different areas of research, such as economics, marketing, and psychology, have shown interest in studying this interesting and complex behavior in a traditional commerce context. These researchers have made significant contributions to our understanding of consumer behavior. Belch and Belch defined consumer behavior as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. Belch and Belch (2007) explained that the consumers undertake both internal (memory) and an external search. According to the Merriam-Webster online dictionary, a consumer buying behavior is very much influenced by the stimulus to purchase. A stimulus is something that rouses or incites to activity or an agent (as an environmental change) that directly influences the activity of a living organism or one of its parts (Merriam-Webster Online). Thus, the stimulus can be considered as the catalyst, which makes the consumer be impulsive. The 16 stimuli can be a piece of clothing, jewelry, or candy. Store atmospherics, which can be considered as an important factor in predicting consumer-buying behavior, allows the marketer to position products in an enticing way to increase sales (Dholakia 2000). Finally, the consumer experiences emotional and/or cognitive reactions, which can include guilt or disregard for future consequences. Weinberg and Gottwald (1982) have combined various characteristics into three important determinants of the consumer buying process, which include the reactive component, the affective component, and cognitive component. One of the characteristics of the consumer buying process is the exposure to the stimulus. Therefore, buying is a reactive behavior, in that the consumer shows certain responses when exposed to the stimulus in the
42

purchase situation. Another important characteristic is the immediate nature of the behavior. When exposed to the stimulus, the consumer feels an irresistible urge to buy the product of interest (Rook 1987). At this point, emotional forces drive him or her, such that the impulsive behavior is considered as being highly affective. Finally, because this behavior is reactive and highly affective, the consumer has very low intellectual control over the buying decision. The consumer does not act consciously, but rather reacts to the presence of the stimulus, such that cognitive processes are kept to a minimum. Dittmer and colleagues (1995), proposed a model of consumer buying behavior to address the limitation of the previous model. Drawing from the social constructionist perspective and the psychology of material possessions. The main assumption of this model is that consumers no longer buy products only for their functional benefits, but also for their symbolic meanings. Products are consumed for their symbolic meaning in that they give an indication of the social standing, wealth, and social status of an individual. Puri (1996) proposed a two-factor cost-benefit accessibility framework, which addresses the limitations of previous models. The model draws from research on impulsiveness, self-control, and time-inconsistent preferences and builds on a hedonic framework, according to which an individual feels an irresistible urge to buy a product when he or she is exposed to it. According to the concept of time inconsistent preferences, when the consumer is exposed to the stimulus, the benefits of immediate gratification outweigh any future considerations, such as monetary issues. The basic premise of this model is that impulsivity depends on the degree to which the situation emphasizes the negative costs of impulsiveness, the benefits of acquiring the product or both, and the propensity of an individual to be impulsive. In situations in which the benefits outweigh the costs, the temptation to succumb to the felt urge is high and is the compelling force of impulsiveness.

Advertisement on television
Halfold (2005) (p.286)., argued that major changes in the home life of many of our

children need to take place and that TV adverts do influence childrens behavior and, critically, their intake. Television is the main channel for marketing food to children in many countries. For example, it has been identified as the main medium for snack food advertising to the young in Thailand (Mulchand, 2004 as cited by Hawkes, 2006). Vignali (2001) writes that the success experienced by McDonald s in East Asia could not have been achieved without appealing to children and teenagers though television advertising, and in 2004, Pizza Hut spent approximately $US 2.5 million on television advertising in India alone (Exchange for Media, 2004). The only exception to this focus
43

on television was in pre-1994 China, where adverts could only be shown at the end of programs, when viewers tended to switch to other channels making the medium unattractive. Web: ntu education,The role of advertisement changes unto what the organization wants them to do. There were times that an organization wants them to do. There were times that organizations use the advertising to help them survive from the impacts of economic trends. Still, the economists views that the advertising plays a significant effect on the consumer behavior. And in a long process, the advertising can lead the organization to competition. Based on the understanding regarding the advertising, the approach rooted in the organizations search for the right answer on the effects of the competition. Consequently, the accepted basic role of the advertising is to provide the consumers with the right amount of information regarding the product or services, which is related to the objective of the competition and that is to deliver the consumer satisfaction. In this view, the level of advertising affects the consumer who is the focus of the organization (Park,1996). Based on the previous studies regarding the consumer behaviors, there are three influential factors that affect the consumer decision when buying. They are enumerated as external influences, internal influences and the marketing influences in which the advertising, product promotion, and pricing technique are found. Definitely, the marketing activity such as advertising affects both internal and external behavior of the consumer. Most especially, the consumers perceptions are influence through the exposure such as seeing an advertisement; attention which means that the consumer recognizes the advertisement; awareness which is common if the advertisement involves some humor; and the retention that keeps or stays in the mind of the consumer (Chen and Lee 2005). Advertisements also affect the knowledge by giving information, attitude, personality, lifestyles of the consumers, and the culture of the consumer. The concept of advertising makes it possible to involve the consumers which greatly affect the buying decisions of the consumers (Tsai, Liang, and Liu, 2007). Web: Encyclopedia, Although the primary objective of advertising is to persuade, it may achieve this objective in many different ways. An important function of advertising is the identification function, that is, to identify a product and differentiate it from others; this creates an awareness of the product and provides a basis for consumers to choose the advertised product over other products. Another function of advertising is to communicate information about the product, its attributes, and its location of sale; this is the information function. The third function of advertising is to induce consumers to try new products and to suggest reuse of the product as well as new uses; this is the

44

persuasion function. The identification function of advertising includes the ability of advertising to differentiate a product so that it has its own unique identity or personality.
Web: Encyclopedia. rank, Advertising ,Walter Dill Scott of Northwestern University

wrote the book The Theory of Advertising (1903), which sought to build a theoretical understanding of advertising based on the principals of psychological science. Scott suggested that advertisers should develop certain fundamental principles on which to construct a rational theory of advertising .The application of psychological theories to advertising provides an understanding of how consumers process advertising messages and make purchase decisions. Theories of attention, information processing, attitude formation, and decision making all have relevance to understanding how advertising affects consumers. Another important application of psychological principals is to develop an understanding of consumer needs
Web:Tepper education;Baohong Sun:The Impact of Advertising on Consumer Price Sensitivity in Experience Goods Markets. Advertising can affect consumer demand in

many different ways. Becker and Murphy(1993) have argued that the "presumptive case" should be that advertising works by raising marginal consumers' willingness to pay for a brand. This has the effect of flattening the demand curve, thus increasing the equilibrium price elasticity of demand and then lowering the equilibrium price. Thus, advertising is profitable not because it lowers the elasticity of demand for the advertised good, but because it raises the level of demand. There have been many prior studies of how advertising affects two equilibrium quantities: the price elasticity of demand and/or the price level. Our work is differentiated from previous work primarily by our focus on how advertising shifts demand curves as a whole. As Becker and Murphy pointed out, a focus on equilibrium prices or elasticities alone can be quite misleading. Indeed, in many instances, the observation that advertising causes prices to fall and/or demand elasticities to increase, has misled authors into concluding that consumer price sensitivity must have increased, meaning the number of consumers willing to pay any particular price for a brand was reduced perhaps because advertising makes consumers more aware of substitutes. But, in fact, a decrease in the equilibrium price is perfectly consistent with a scenario where advertising actually raises each individual consumers willingness to pay for a brand. Television is the main channel used by food marketers to reach children. Studies of television advertising dominate the published literature. Of the 63 studies included, only three did not examine television advertising (Consumers Union, 1995; Hawkes, 2002; Longman, 2002), with only another two focusing on other forms of promotion as well as television advertising (Longman 2000; Horgen, Choate & Brownell, 2001 ). Of the television advertising studies, most examined adverts that featured during childrens
45

time-slots: Saturday and Sunday morning television and the mid-week, after-school childrens hours. These time-slots were shown to be heavily used by food marketers to promote foods to children, and this trend was consistent across countries .This study summarizes a review of the extent and nature of food promotion to children, and its effects on their food knowledge, preferences and behavior. The research was undertaken by the Institute for Social Marketing at Stirling and the Open University, United Kingdom, on behalf of the World Health Organization in preparation for the WHO meeting of stakeholders on Marketing food and non-alcoholic beverages to children held in Oslo (24 May 2006). The work updates two previous systematic reviews of the effects of food promotion to children (Hastings et al., 2003; McDermott et al., 2004). The Hastings review, undertaken for the United Kingdom Food Standards Agency (FSA), was the first ever systematic study of the effects of food promotion on children. Since its publication, it has informed policy decision-making in the United Kingdom through the FSA Action Plan (Food Standards Agency, 2004) and the Choosing Health White Paper (Department of Health, 2004). Together with a more recent report (Livingstone, 2006), the Hastings review also provided the basis for Of coms recent consultation on the regulation of food promotion to children (Ofcom, 2006). Of com is the United Kingdom body with responsibility for regulating broadcast advertising. Another major report on food marketing to children was published earlier this year by the Institute of Medicine in the USA (Institute of Medicine, 2006). This comprehensive study, funded by the Centers for Disease Control and Prevention (CDC), substantiates the findings of the earlier reviews and has led to calls for improvements in the way that food promotion is regulated in the USA. According to Doole & Lowe (2004), advertising is the most important part of the whole marketing strategy. There are many channels of media to use for advertising, for example television, printed media, radio, cinema, outdoor and transport poster. Marketers use television as the most powerful medium of communication.

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CHAPTER 3 RESEARCH METHODOLOGY

3.1 Introduction
The approach to be adopted in conducting this study will be the use of a questionnaire. This type of research lends itself towards exploratory research. So in this study exploratory research was conducted by us through questionnaire as a medium of gathering information. Exploratory research aims to gain familiarity and new insights into any phenomenon while analytical research aims at analyzing the current scenario and thereby using that to project the future performance.

3.2

Purpose of the study

Through this report we want to find out how children are influenced by the

advertisements and buying capacity of parents especially of confectionary products. So the

47

purpose of this project would be Impact of Advertisements on Children and various factors influencing the buying behavior with special reference to confectionary products. The research process goes within the following confectionary products: Biscuits Chocolates Noodles Sauces Health Drinks

3.3

Universe of Study
The universes of our study were children and their parents only in the chosen parts of

the Himachal Pradesh. The project includes only children between the ages 9-13 years.

3.4

Methods of data collection

The primary data was collected by means of a closed and open ended questionnaire

based upon the Lickerts Five Point scale. The questionnaire used was not standardized so we have to test the reliability and validity of the questionnaire by analyzing the questionnaire with the help of various statistical techniques. Questionnaire included questions that examined the factors such as role of Awareness, Taste, Price, Obstinate Behavior of children, Promotion, Packaging, Advertisement on Television which influenced the Buying Behavior and Purchasing Power of parents. Secondary data was obtained from various research papers, magazines, and internet websites.

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3.5

Sampling Design
Simple Random Sampling Sample Size : 200 Sample Description: 100 Children and 100 Parents. Sample Area: Different parts of Himachal State.

3.6

Reliability
Reliability of the data collected was ascertained by finding out the value of the

Cronbachs alpha coefficient. If the value of Cronbachs alpha coefficient is more than 0.6 then only the data collected is considered to be reliable.

3.7

Tool for Data Analysis

Tools for data analysis include simple arithmetic calculations like averages,

percentages, charts, graphs etc. SPSS(Statistical Package for the Social Sciences) software is used for the analysis of collected data. The justification for using the SPSS software is:

Statistics included in the base software:

49

Descriptive statistics: Cross tabulation, Frequencies, Descriptive, Explore, Descriptive Ratio Statistics Bivariate statistics: Means, t-test, ANOVA, Correlation (bivariate, partial, distances), nonparametric test.

Prediction for numerical outcomes: Linear regression Prediction for identifying groups: Factor analysis, cluster analysis (two-step, Kmeans, hierarchical), Discriminant analysis.

Factor Analysis Factor analysis attempts to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables. Factor analysis is often used in data reduction to identify a small number of factors that explain most of the variance observed in a much larger number of manifest variables. Factor analysis can also be used to generate hypotheses regarding causal mechanisms or to screen variables for subsequent analysis (for example, to identify co linearity prior to performing a linear regression analysis). Correlation Correlation is a statistical technique that can show whether and how strongly pairs of variables are related.

Pearson correlation A Pearson correlation measure the strength of the linear relationship between two continuous variables. A linear relationship is one that can be captured by drawing a straight line on a scatter plot between the two variables of interest. The value of the correlation provides information both about the nature and the strength of the relationship.

50

Correlations range between -1.0 and 1.0. The sign of the correlation describes the direction of the relationship. A positive sign indicates that as one variable gets larger the other also tends to get larger, while a negative sign indicates that as one variable gets larger the other tends to get smaller.

The magnitude of the correlation describes the strength of the relationship. The further that a correlation is from zero, the stronger the relationship is between the two variables. A zero correlation would indicate that the two variables arent related to each other at all. Correlations measure the strength of the linear relationship between the two variables.

So for checking out the reliability and validity of the questionnaire we made use of Cronbachs alpha coefficient and for finding out the critical factors we made use of Factor Analysis for predicting and identifying major factors which affect the performance of the insurance policies being sold by the banks in the view point of the customers of the banks. Furthermore, to check the inter-relation between various variables we used the correlation technique, so as to check the inter relationship between various variables and to check the relative significance of each of the variables. Communalities Communalities indicate the amount of variance in each variable that is accounted for. Initial communalities are estimates of the variance in each variable accounted for by all components or factors. Extraction communalities are estimates of the variance in each variable accounted for by the factors (or components) in the factor solution. Small values indicate variables that do not fit well with the factor solution, and should possibly be dropped from the analysis.

51

3.8 Expected contribution of the study

The research or study will help to understand how children are influenced by the advertisements of confectionary products and factors influencing the buying behavior.

3.9 Beneficiaries
Beneficiaries of this research would be researchers, students, parents & the company with confectionary products.

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CHAPTER 4 RESULTS AND DISCUSSIONS

4.1 Data Analysis
Data analysis is the most important part of any project but analysis cannot be done without checking the reliability of the questionnaire during the survey process, because if the questionnaire being used for the purpose of collecting the data will not be reliable there is no meaning of the whole of the research as the results found will not be true and they will not reflect the actual factors critical for the success of the research. The Statistical tool of which we made use for the purpose for analyzing the data is SPSS (Statistical Package for the Social Sciences).

4.2

Reliability Test
In this study we have made use of close ended questionnaire based on the Five Point

Lickert Scale. The questionnaire used is not standardized so to check its reliability we have to test its reliability. The reliability of the questionnaire can be checked by checking the Cronbachs alpha coefficient value. A questionnaire is considered reliable if and only if the value of Cronbachs alphas value comes out to be greater than 0.6 and it needs no manipulation to data.

When we measured the value of Cronbachs alpha coefficient using the SPSS software the value of Cronbachs alpha coefficient came to be 0.682 which is much higher than required 0.6,

53

thus the questionnaire used is appropriate and very much reliable and the data can be used for

Reliability Statistics
Cronbach's Alpha .682 further analysis without doing any manipulation. N of Items 18

The above obtained observations thus imply that the questions used in survey are quite reliable and data can be further used for making further statistical analysis and result found with the data being collected with the help of this questionnaire will be valid and reliable and it will give true results on which we can rely upon.

Communalities
The above analysis is further strengthened when we check the communalities of the various variables. The table containing the extracted communalities for each variable is shown below

54

Communalities Extractio Initial n

Do you insist your parents to buy you any confectionary product after watching ad of the same? Does your parent react positively when you insist them to buy you any confectionary product after watching its ad? Do your parents fulfil your demand every time? Does packaging tempt you to buy the product? Do you evaluate product according to printed information while purchasing Does free gift attracts you to buy the product? Does taste of the product attracts you to buy that product? Does ad of the product helps you to buy that product? Does price of the product affects your decision to purchase that product? Before buying the product do you have knowledge about that product? Do you agree to your childs demand when they insist you to buy any confectionary product after watching its ad? Do you fulfill the demand of your child every time? Does packaging tempt your children to buy the product? Do you evaluate product according to printed information while purchasing product for children? Does price of the product affects the purchasing decision? Does your child insist you to buy the product after watching its ad? Does your earnings affect the fulfillment of demand of your child? Are you aware about the product before purchasing it?

1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

.710 .784 .841 .845 .790 .775 .731 .758 .665 .700 .699 .579 .754 .810 .667 .840 .717 .638

Extraction Method: Principal Component Analysis.

55

Communalities indicate the amount of variance in each variable that is accounted for. Initial communalities are estimates of the variance in each variable accounted for by all components or factors. Extraction communalities are estimates of the variance in each variable accounted for by the factors (or components) in the factor solution. Small values indicate variables that do not fit well with the factor solution, and should possibly be dropped from the analysis.

So from the above table we can analyse that the variables packaging and advertisement on tv have the maximum extraction value as compared to parents awareness and childs obstinate behaviour have low extraction value. So the components having more extraction value are more responsible for advertisement effect and the buying behaviour of parents.

56

After looking at this graph one can observe that the graph drawn is between component no. and the Eigen values and this graph simply explains the major components which are very useful in sector of bancassurance and in our factor analysis we kept the lower limit of Eigen value as 0.85 in order to obtain major components responsible for the advertisement and those must be kept on high priority by the companies in order to have a bright future of advertisement in India. So from this we can easily observe that there are 9 major components which are the major players in the field of advertisement and buying behavior and carrys other variables under these components.

57

By using SPSS software tool we can easily obtain these components and their importance as compared to other components can be easily achieved, and from above analysis we found 9 major components which are listed below with their relevant importance to advertisement sector.

4.3

Major components and their variables:

4.3.1 Open ended:-

58

59

60

From our study it was clear that most of the childeren watch advertisement on television. Thus to be promoted for children should be advertised well on television.

Our study cleared the fact that most of the children watch television for 1-3 hours a day between the time interval of 5pm 8pm. Thus , companies promoting products for children should focus at this time interval rather wasting their time and money for advertisement for whole day.

61

Most of the children are familier with the advertisement of chocolates followed by biscuits and chips. So, it is clear that these products attract children more and have the high potential to capture the market of children.

Children like to watch cartoons on the television. Companies can go for cartoon movies for their advertisement. They can show their product in the cartoon movies. The movies can in turn displayed on television at the above mentioned time.

It is also seen in the graph that parents spending on the product mainly lies between the range of Rs. 5- Rs. 15. And also they are willing to spend between the same range.

4.3.2 Closed ended:To refine the findings of information validation, the data of 80 customers are subjected to Principal Component Analysis. After Varimax rotation, the factors emerged with Eigen values greater than 0.85, accounting for the independent decision variables. All nine principal components are loaded with certain decision variables having communality greater than 0.40. Therefore, this analysis explores 15 highly influencing decision variables for advertisement and buying behavior. It justifies the authenticity of previous finding related to importance of decision variables, mentioned in table above. The decision variables highlighted as less important for research are automatically excluded in Principal Component Analysis. After doing the analysis on the data we have found that there are 9 main components those are summarized as follows:

S. No. 1.

Components

Variables

Communa lity

packaging

Does packaging tempt you to buy the product? Does packaging tempt your children to buy the

.845. .754

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product?

2.

ad_on_tv

Does your child insist you to buy the product after watching its ad?

.840

Does ad of the product helps you to buy that product?

.758

Does free gift attracts you to buy the product? 3. promotion

.775

4.

Buying behavior

Do your parents fulfil your demand every time?

.841

Does your parent react positively when you insist them to buy you any confectionary product after watching its ad?

.784

Does price of the product affects the purchasing decision?

.667

5.

Taste

Does taste of the product attracts you to buy that product?

.731

6.

Purchasing Power

Does your earning affect the fulfillment of demand of your child?

.717

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Do you evaluate product according to printed information while purchasing product for children? 7. Awareness Before buying the product do you have knowledge about that product?

.810

.700

Do you evaluate product according to printed information while purchasing

.790

Are you aware about the product before purchasing it?

.638

8.

Price

Does price of the product affects your decision to purchase that product? Do you insist your parents to buy you any confectionary product after watching ad of the same?

.665

.710

9.

Obstinate Behavior

Do you agree to your childs demand when they insist you to buy any confectionary product after watching its ad?

.699

From above listed table it is clear that on basis of data available with us there are 9 major components which are clearly specified by tool applied and these 9 components
64

covers various variables. Variables whose communality is greater than 0.5 are only considered in order to have the major variables under each component and these variables clearly explain us that how important they are for their respective components. We can consider the absolute value as per ones own need, hence making data more appropriate and feasible Above formulated table explains that Packaging is the major component with 2 important variables 84% of children said that they are influenced by the packaging of the product and thus packaging is a priority for the companies to look in for so as to enhance buying behavior. After packaging next component which is major in this sector is advertisement on TV used by companies in order to enhance sales, as our study shows that 84% parents think their children insist to buy after watching add of the product as advertisement not only enriches the anxiety of children to buy that product but it also tells about the different schemes and gifts they are getting with the product on its purchase.

Promotional activities of providing free gifts with confectionary products not only attract the children but it also helps in improving the sales of the company, 78% children just buy these products in order to have free gifts.

Buying behavior of children comes out to be 4th important factor in our study as it includes variables that do parents fulfill the demand of children and many of our answers come out in its favor, this also explains us that price of product dont play a big role here as many parents buy products to their children irrespective of the price of that product.

Taste comes out to be the next major factor and children says that if the taste of product is good than they prefer buying that product irrespective of advertisement of other products is much vast.

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Purchasing power comes out to be a major in our study as the confectionary goods are not very costly but here purchasing power indicates the hat no. of times they can afford that product in a day so here the response was not that good since the value of communality is just .717 that is 71% of people think that purchasing power is not an issue for the confectionary products for their children.

Awareness is the next component as 81% of parents go through the printed information over the packet before purchasing it but only 63.8% of parents are aware of the confectionary products before buying them for their children

Price is an important issue for the confectionary products for children as 66% children said that price influences the buying decision of the products. Obstinate behavior is the last component and we found that 71% of children said that they insist their parents to buy certain product, but on other hand just 69% of parents said that they always buy product for their children when they insist for that.

4.4 Correlation between different components

Correlation not only helps in understanding the relationship between two or more variables but it also tells us the level of significance between different variables. Below listed components have 7 independent components and 2 dependent components.

Independent Components are :

1. 2. 3. 4. 5. 6. 7. Taste Packaging Advertisement on TV Price Promotion Purchasing Power Obstinate Behavior

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Dependent Components are:

1. Buying Behavior 2. Awareness On applying the correlation operation from the SPSS tool we obtained the table explaining the relationship between different independent and dependent variables as follows:

67

obstinate taste packaging Taste Pearson Correlation Sig. (2tailed) N Packaging Pearson Correlation Sig. (2tailed) N ad on tv Pearson Correlation Sig. (2tailed) N obstinate behavior Pearson Correlation Sig. (2tailed) N Price Pearson Correlation Sig. (2tailed) N Promotion Pearson Correlation Sig. (2tailed) .002 .005 .191 .001 .000 .001 100 .130 100 .277** 100 .132 100 .318** 100 .408** 100 1 100 .315** .001 .187 .000 .006 .000 .003 100 .326** 100 .133 100 .350** 100 .273** 100 1 100 .408** 100 .296** .103 .252 .509 .006 .001 .033 100 .164 100 .116 100 .067 100 1 100 .273** 100 .318** 100 .214* .154 .479 .509 .000 .191 .006 100 .144 100 -.072 100 1 100 .067 100 .350** 100 .132 100 .274** .061 .479 .252 .187 .005 .004 100 .188 100 1 100 -.072 100 .116 100 .133 100 .277** 100 .285** .061 .154 .103 .001 .002 .000 1 .188 ad on tv .144 behavior .164 price .326** promotion .300** awareness .398**

purchasing power .216*

buying behavior .196

.031

.050

100 .768**

100 .191

.000

.057

100 -.085

100 .032

.400

.750

100 .069

100 .120

.492

.236

100 .088

100 .268**

.383

.007

100 .183

100 .180

.068

.074

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Correlation between independent variables:

The above table explains the relationship between different components as: Taste is correlated to price at 99% of significant level which tells us that even if the price of product is high but having good taste than it will gain more consumers. Taste is also related to promotion and up to significant level of 99% this indicates that if the taste of product is good than people are more aware and it do not need much of advertisement. Packaging is correlated to promotion up to a significance level of 99% and it indicates that packaging is good source of promoting the product. Giving adequate detail on the packet is good source of promoting the product. Advertisement on TV is having a relationship with price component this shows that if a child watching more TV will be more anxious to buy that product irrespective of its price here advertisement is 99% significantly related to price. Obstinate behavior is having a 99% significant relationship with price and promotion and it indicates that if the price of product is less or free gifts are provided with the product than child will insist more to buy that product. Price is co related to the factors like advertisement, obstinate behavior and promotion with significant level of 99% this indicates that price plays a major role in buying behavior and advertisement if the price is significantly low than children will more often buy that product and if the companies are providing free gifts with the product than price of product will be more. Promotion is having a significant correlation of 99% with packaging and price this implies that packaging is good source of promotion and if the promotion of products is more than price of the product will be definitely high.

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 Purchasing power is correlated to taste with significant level of 95% this implies that even if the purchasing power is not high than also for the taste of ones he has to purchase that product for ones satisfaction.

Correlation of dependent variables with independent variables:

Correlation of awareness to different independent variables: First dependent variable here is awareness which is having a significant relation of 99% with taste, packaging, promotion, price and advertisement so this explains us that if the taste of product is good than children are more aware about the product. If we look awareness relation with promotion it tells us that if proper information is given on the packet than there will be much more awareness between different consumers of the product. Awareness and price also move hand in hand as if the price of product is in ones reach than children and even parents are much more aware about those products as compared to costlier products. Awareness is straight way related to advertisement as if the advertisement of product is more on TV children will be much more aware to that product and hence it will help producers to increase the sale of product. Correlation of Buying Behavior to different components: Buying behavior is significantly correlated to price to an significant level of 99% this shows that buying behavior completely depends on the price of the product, if the price of the product is low than children will be much more attracted and will buy that product more often and if the price will be high than the buying behavior will definitely decline. Buying behavior is 95% significantly related to awareness, this shows that if children are more aware to product than the buyers of that product will definitely be more. So we can say that awareness of product is a major component for the buying behavior.
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Also this research validated that among many communication tools, television advertisements have more impact and effect on children than the other medium of advertising. From our survey we have found that more number of children watch television for 1-3 hours a day between the time intervals of 5 pm to 8 pm.

As far as watching any particular program on television is concerned, children like to watch cartoon movies or cartoon serials on television. Children also like to watch movies on television.

Among selected confectionary products from Biscuits, Chocolates, Chips, Noodles and Health Drinks, children like to have chocolates, biscuits and chips more than other confectionary products.

Majority of children are familiar with the advertisements of chocolates followed by biscuits, and chips. After watching advertisements of any confectionary products majority of children have tried to purchase that product. Those children who have tried to purchase confectionary product after watching its advertisements, in that they like to buy more Chocolates, Biscuits and Chips. Majority of children like to watch advertisements of confectionary products on television rather any other media. Majority of children like to buy confectionary products because it gives free tattoo and other promotional things. After watching advertisement of confectionary products children sometimes insist their parents to purchase that product for them. When children insist their parents to purchase confectionary product after watching its advertisement, parents generally do agree with them. They sometimes get reluctant to buy the product if the price is high.

While they are shopping, the first thing comes in their mind is to purchase the advertised products. In this situation, the advertising has a stronger effect on younger children than the older children.

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Nowadays it seems that childrens impact on family decision in shopping has been steadily increased. The parents day to day spending lies between Rs. 5 to Rs. 15. Also it was seen from the study that they dont want to change their spending range.

Chapter 5 Summary and Conclusion

5.1 Data collection: - The primary data was collected by means of a closed and open
ended questionnaire based upon the Lickerts Five Point scale. The questionnaire used was not standardized so we have to test the reliability and validity of the questionnaire by analyzing the questionnaire with the help of various statistical techniques. Questionnaire included questions that examined the factors such as role of Awareness, Taste, Price, Obstinate Behavior of children, Promotion, Packaging, Advertisement on Television which influenced the Buying Behavior and Purchasing Power of parents. Secondary data was obtained from various research papers, magazines, and internet websites. Open ended questions were based upon Lickerts scale. 1- Strongly Disagree 2- Disagree 3- Neutral 4- Agree 5- Strongly Agree.

5.2 Analysis: - Appropriate statistical tools like correlation and regression has been used
to analyze the data. Pearsons coefficient was used to measure the strength of the linear

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relationship between two continuous variables. Cronbachs Alpha test was used to check the reliability of the questioner.

5.3 Conclusion: -

From the study it was clear that children watch television for the 1-3

hours a day, mostly between the time intervals of 5pm- 8pm. They love to watch television the most rather than any mode. On the television they mostly watch cartoon movies and are familiar with the advertisement of chocolates followed by biscuits and chips. So, cartoon movies on television serve as the main source of advertisement. Companies have good chance to grow if they go for chocolates, biscuits and chips. It was clear from the study that if the price is higher but taste is good, then also the product will be preferred. From the survey conducted, we came to know that packaging serve as a good source of promotion of the product. Whenever child watches more advertisement of a particular product he is keen to buy that product and even force his parents for that product. If free gifts are provided with the product or price of the product is low then child will frequently buy that product. Awareness for any product mainly comes from advertisement and the packaging of the product. Parents mostly see the packaging of the product. Their buying behavior is mainly influenced by the childs obstinate behavior. Price also affects the buying behavior of the parents. If the price is less than parents easily agree to buy the product and if the price is more parents are reluctant to the demands of the child. So, it is clear that if price is less than it results in more sale of the product. If companies want to increase their day to day sales of confectionery products then they have to keep prices between the range of Rs. 5- Rs. 15.The factor which mostly influences the buying of the confectionery product is awareness which comes from advertisement and packaging. So, we can conclude that if advertisement is done in a good manner it will definitely result in high sale. Packaging tempts the children to buy the product and if any company offer free gifts with the product it will increase their sales. Parents mostly prefer products with low price and thus if company offer less price to the product it will have more sales.

5.4 Suggestions:-

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To some extent children have limited understanding so advertisers should not directly persuade children to buy the product which is shown in the advertisement. As far as advertisements of confectionary products are concerned, advertisements should be seen with their pros and cons. E.g. pros and cons of Chocolate. Advertisers must not misuse childrens relative inexperience. It is the duty of parents to see what their children are watching on television and if they are highly influenced by the advertisements especially of confectionary products then parents should try to explain them what are the pros and cons of that product by using it.

Companies should lower the prices of their product so that more number of children could buy it but at the same time they should not degrade the quality of the product. Companies should take good care of the hygiene of the product. Parents should also see that the product which they are buying for their children is having good hygiene and they should read the information. Advertisement should give the proper information about the product. Parents should see that the product which their child is demanding doesnt contain such ingredients which hamper the health of the child. Same should be kept in the minds of the company.

5.5 Limitations:The major barriers in conducting the survey are: 1. Time Limitation 2. Financial Limitations 3. Geographical Limitations

1. Time Limitations
For a researcher time has always worked as a barrier to his/her research process. As we are conducting the survey in the different places of Himachal Pradesh and observing the students

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aging between 9 years to 13 years, time has always worked as a limitation to the research process

2. Financial Limitations
Another major limitation for this study is financial limitation. Finance is the major limitation for any study. Again for this study finance does matter to the researcher to some extent.

3. Geographic Limitations
As we all know that Himachal is becoming an educational hub. It covers big number of people living in the area. There are thousands of primary schools where the students are studying. (Because children can be interviewed either at the school opening time or the recess time or the school closing time only).

BIBLIOGRAPHY
Books:
George Belch and George Michel, Advertising and Sales Promotion Management, 6th Edition Ogilvy David Ogilvy on Advertising by, Prion Books, London, 1997 Marketing management by Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha, 13th edition. Magazines: Advertising Express, Article: Marketing Promos Targeting Children Advertising Age, Article: Effects of Advertisements on Children Web Links:

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 http://www.wikipedia.com http://www.agencyfaqs.com http://www.wowessays.com http://www.media-awareness.ca/.../advertising.../kids_advertising_rules

http://encyclopedia.org
http://www.c-i-a.com/( Computer Industry Almance) http://www.Itu.com (Intrenation Telecommunication Union) http://www.internetworldstats.com/asia/in.htm http://www3.ntu.edu.sg

Advertising Effects - Processing Information, Information Evaluation. (n.d.). Retrieved 11 28, 2010, from Online Encyclopedia: http://encyclopedia.org Advertising Effects - The Functions of Advertising, Advertising and Psychology, How Advertising Works, Getting Attention, Processing Information, Information Evaluation(n.d.). Retrieved 11 28, 2010, from Encyclopedia: http://encyclopedia.jrank.org Chunawalla, S., & Sethia, K. (2009). Advertising World. In Foundations of advertising (pp. 13-44). Mumbai: Himalaya Publishing House. How advertising affects consumers. (2003, 06 1). Retrieved 11 28, 2010, from goliath: http://goliath.ecnext.com jain, s., & jaithawaney, j. (2006). advertising. In advertising management(pp. 7-17;282-308). new delhi: oxford university press. Rajagopal. (2009). developing a media plan. In international marketing(pp. 321-330). new delhi: vikas publication house.

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Schudson, M. (n.d.). Advertising: Hit or My thRetrieved 11 29, 2010, from Center for media literacy: http://www.medialit.org Shah, A. (2008, 01 26). Media and Advertising. Retrieved 11 28, 2010, from Global Issues: http://www.globalissues.org/article/160/media-and-advertising Sun, B. (n.d.). The Impact of Advertising on Consumer Price Sensitivity in Experience Goods Markets Retrieved 11 29, 2010, from Tepper: http://tepper.cmu.edu Zhou, D. (2003, 22 06). Long-term effects of television advertising on sales of consumer durables and nondurables: the case of China. Retrieved 11 28, 2010, from All Business: http://www.allbusiness.com Park, D., 1996. Advertising and the Meaning of Competition [Online] Retrieved 11 29, 2010, from http://www3.ntu.edu.sg Chen, W., & Lee, C., 2005. The Impact of Web Site Image and Consumer Personality on Consumer Behavior, International Journal of Management, Vol. 22, No. 3. Tsai, M., Liang, W., & Liu, M., 2007. The Effects of Subliminal Advertising on Consumer Attitudes and Buying Intentions, International Journal of Management, Vol. 24, No. 1

NATIONAL INSTITUTE OF TECHNOLOGY HAMIRPUR (H.P.) -177005

Questionnaire on impact of advertisement on children and various factors influencing the buying behavior 1. Please answer the questions by putting a tick mark in relevant box that best reflects your degree of agreement or disagreement with that statement. 2. If for any reason you feel uncomfortable with answering some questions, simply leave them blank. However, we would appreciate it if you answer all questions. 3. Try to answer as accurately as possible. Basic Information Contact Name............................Age. Contact Address
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Questionnaire to be filled by Child

1. How many hours a day do you watch TV? ___________ 2. At what time do you watch television mostly? Before 8am 8 am -11 am 11 am -2pm 2 pm -5 pm 5 pm -8 pm After 8 pm

3. If you were to buy confectionary product what would you buy. Biscuits

Chocolates Sauces Noodles Health Drinks (i.e. Bournvita, Complain, Boost, etc.)

4. What do you like to watch on TV? Cartoons Reality shows Movies TV serials Song based programmes 5. You mainly watch advertisement through which of the following medium? TV Internet
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 Magazine Newspaper Mobile Tick mark the appropriate option in following questions: Strongly Agree(5) Q6. Do you insist your parents to buy you any confectionary product after watching ad of the same? Agree (4) Neutral (3) Disagree (2) Strongly Disagree(1)

Q7. Does your parent react positively when you insist them to buy you any confectionary product after watching its ad?

Q8. Do your parents fulfil your demand every time?

Q9. Does packaging tempt you to buy the product?

Q10. Do you evaluate product according to printed information while purchasing

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Q11. Does free gift attracts you to buy the product?

Q12. Does taste of the product helps you to buy that product?

Q13. Does ad of the product helps you to buy that product?

Q14. Does price of the product affects your decision to purchase that product?

Q15. Before buying the product do you have knowledge about that product?

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Questionnaire to be filled by Parents

Q1. How much money do you spend on average on confectionary products every day? ___________________________ Q2. How much money are you willing to spend on average on confectionary product every day? ___________________________

Tick mark the appropriate option in following questions: Strongly Agree(5)

Q3. Do you agree to your

Agree (4)

Neutral (3)

Disagree (2)

Strongly Disagree(1)

childs demand when they insist you to buy any confectionary product after watching its ad?

Q4. Do you fulfil the

demand of your child every time?

Q5. Does packaging tempt your children to buy the product?

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Q6.Do you evaluate product according to printed information while purchasing.

Q7.Does price of the product affects the purchasing decision? Q8.Does your child insist you to buy the product after watching its ad?

Q9.Does your earnings affect the fulfilment of demand of your child?

Q10.Are you aware about the product before purchasing it?

..............................Thank you..........................

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