Impact of Advertising on Non-Durable Goods of Household Consumer: A Case Study

Sa eeb !umar Shrestha" # $hil %&&' (ac)ground of the Study Marketers continue to spend large amounts of money on advertising because it is one of the most important and visible marketing tools. Advertising is one the way of promoting products, services and ideas in various ways. Advertising influences consumers' attitude and purchase behaviour in a variety of systematic manner. Advertising is essential to manufacturers, wholesalers and even to the retailers and it assist to excel the sales of products and services. The degree of effectiveness of advertising is determined by the satisfaction of consumers. Advertising is generally thought to have a current period influence on sales, called the current effect, and a long-term influence beyond the current period, called the long-term or carryover effect Tellis and !eiss, "##$%. The advertising influences to the consumer buying behaviour which is the study of how individuals make decisions to spend their available resources like time, money and efforts etc. Advertising consists of activities involved in presenting to a group of a non-personal, oral or visual, openly sponsored message called as advertisement, is disseminated through one or more media and is paid for by identified sponsor &tanton, "#'(%. )very rational buyer has some reasons behind their every purchase. *easons which induce them to buy any products are called as buying motives. +uying motives is motivating the buyers to buy certain product. A producer should have knowledge of buying motives of consumer before manufacturing their products. +uying motives is the thoughts, feelings, emotions and instincts that arises a desire in the buyer to buy a product. Media has a vital role in the process of advertising communication. )ffective advertising is possible only if suitable media are available. ,ere, advertising media are the means delivering sales or buying message. )very producer seeks to keep in touch with the customers as well as to attract prospects through advertisement media -hunawalla and &ethia, .//"%. 0on-durable consumer products have relatively longer life than perishables, but their 1uality is reduced if stored for longer period of time. 0on-durable consumer products have short marketing life span as these are consumed by the buyer in a shorter duration. )xamples of non-durable products are soap, shampoo, cosmetics, bottled or tin packaged food and drinks. There are number of media available to the advertiser to select and get benefited. 0ewspaper is the oldest, powerful and the most popular media available to advertisers. 2t gives news, views, interpretations, opinions, comments and explanations, regarding current events, social, economic, political educational developments and the like newspaper provide a wide coverage of local and national market. 0ewspapers are usually published daily, circulated once a day and some are published weeklies. Advertising cost varies to different newspaper, depending on their circulation and specialties 3hadka, .//4%. *b ectives of the Study The main ob5ective of the study is to analy6e the impact of media to the consumers for the sake of nondurable goods. ,owever, some other specific ob5ectives are as follows7 ". To identify the strength and directions of the advertising media for the buying habits of non-durable goods of consumers. .. To evaluate the effectiveness of advertisement media on the buying behavior of household consumer with respect to non-durable goods. +ationale of the study The ."st century is the age of marketing on which advertisement on media plays significant role to sell the product to the consumer. Advertising is a new and growing industry in 0epal and non-durable products or direct consumer goods have become a prominent of advertising. 0on-durable goods like soap 8 shampoo, cosmetic items, noodles etc advertisement are featured dominantly in mass media well as the public displays. The decision, without accessing the consumer9s needs or wants, the investment in advertisement will worthless. &o, it is the ma5or issue, which media is appropriate for advertising of non-durable goods like soap 8 shampoo, cosmetic items and noodles effectively.

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!ithout advertising, the sale of products and services is not meaningful because the advertisers do not know the effect of advertising towards the sale of the products. Advertising is essential to inform, persuade and remind to the consumers. 0owadays, various media are used but Television, :M;*adio and <aily 0ewspaper are popular among the various media. &o, this study is valuable to advertisers;marketers to improve their advertising policy. As advertising involves cost and every cost should be allocated for expecting the good return. )very year, many manufacturing and trading organi6ations have been investing millions rupees only for advertising of their products. =nfortunately, a proper research regarding advertising media has not been properly analy6e and evaluated. Therefore, this study focuses to analy6e the present situation of advertising media such as television, :M; radios and newspapers. +eing 0epal is underdeveloped country, there is less impact of consumer related advertising media. Most of the people in remote areas they have no time for watching T> and reading newspaper. &o, they en5oy listening :M;radios. The advertiser should be further analy6ing the viewer9s attitudes, their comments and suggestions through different sectors of viewers which would help to both the advertisers and the viewers in futures. +esearch Hypotheses This research has set following null and alternative hypotheses7 0ull hypothesis ,/a%7 The relationship between spend on non-durable goods and overall advertisement is insignificant. Alternative hypothesis ,"a%7 The relationship between spend on non-durable goods and overall advertisement is significant. 0ull hypothesis ,/b%7 There is no significant impact expressed by household consumers due to overall media i.e. T>, :M;*adio and 0ewspapers%. Alternative hypothesis ,"b%7 There is significant impact expressed by household consumers due to overall media i.e. T>, :M;*adio and 0ewspapers%. 0ull hypothesis ,/c%7 consumer with respect 0ewspaper. Alternative hypothesis consumer with respect 0ewspaper. There is no significant impact on the buying behaviour of household to soap 8 shampoo when advertisement shown on T>, :M;*adio and ,"c%7 There is significant impact on the buying behaviour of household to soap 8 shampoo when advertisement shown on T>, :M;*adio and

0ull hypothesis ,/d%7 There is no significant impact on the buying behaviour of household consumer with respect to cosmetic items when advertisement shown on T>, :M;*adio and 0ewspaper. Alternative hypothesis ,"d%7 There is significant impact on the buying behaviour of household consumer with respect to cosmetic items when advertisement shown on T>, :M;*adio and 0ewspaper. 0ull hypothesis ,/e%7 There is no significant impact on the buying behaviour of household consumer with respect to noodles when advertisement shown on T>, :M;*adio and 0ewspapers. Alternative hypothesis ,"e%7 There is significant impact on the buying behaviour of household consumer with respect to noodles when advertisement shown on T>, :M;*adio and 0ewspapers.

,imitations of the Study The study only focuses on non-durable goods like soap, shampoo, cosmetics and noodles. The study only focuses on highly literate and highly illiterate consumers. The study is based on the data available from the self administered 1uestionnaire methods among the selected consumers. &tudy focus on 3athmandu valley only. The consumers are of household married female only. 0epalese advertisement media were only considered. ,iterature +evie-

The purpose of literature review is to find out what research studies have been conducted in one9s chosen filled of study, and what remains to be done. 2t provides frameworks from which hypothesis can be developed for testing !olf 8 ?ant, .//@%. :or this research purpose, the review of literature has been categori6ed into two groups7 ". -onceptual review .. *eview of previous studies Conceptual +evieAdvertising creates awareness in the market place and may be repeated several times to ac1uaint and remind the target market. Thus advertising is designed to create an image of, or to carry a sales message about a product or service to the consumer, while sales promotion is an activity and used to generate and immediate sales of the product or service 3oirala, "##"%. 2n other hand, consumer behaviour is a function of a complex process. &o, it is difficult to say that advertising is only one variable that influences the behaviour of consumer. Advertising ob5ectives can also be classified as per their ob5ective in terms of informing, persuading or reminding. )xample of information type ob5ective includes making prospective consumer aware of a new product, announcing a new price, and explaining how a product works. ?ersuading ob5ectives includes attempting to build brand preference and loyalty and changing a consumers9 attitude about particular brand characteristics. Ab5ectives having to do with reminding includes communications telling consumers where and when to buy the product +oyd, !estfall and &tasch, .//.%. There is no rule of thumb or set formula for solving this selection problem. )ach advertising situation presents its own uni1ue set of circumstances. )ach type of medium has its own character and each specific medium, in turn, differs from the next. There is no single BbestC medium for all advertising situations. )ach media decision must be made in light of particular re1uirements of a particular situation. )ach competitor selling the same products to nearly the same markets use different media strategies &andage, :ryberger and *ot6oll, "##'%. +evie- of +elated Studies Summary of related previous studies
+esearchers ?andey, "#4/ .opic of the Study Advertising in 0epal #ain *b ectives i% The existing patterns and brands. ii% The constrains hindering the use of advertising as an effective methods of promotion. #a or /indings i% The advertisement programmes are not well coordinate with the other elements of marketing and promotional strategy. ii% ?ublication media, *adio and cinema are the most used media for commercial advertising. iii% Advertising has favorable impact on their customers, sales and profit i% +oth consumers and advertisers recogni6e the need of advertising especially radio media is ranked top in the list. ii% Aut of advertising media available in 0epal -inema advertising is the cheapest. i% Advertising has been established as important promotional tools. ii% T> is the mostly favourite medium for advertisement and radio stands in second position. iii% The ma5or reasons of brand switching the test of the product. i% 0T> is the most popular media and radio 0epal holds the second position in 0arayangadh ii% -oca-cola advertisement on 0T> is more attractive than the ?epsi-cola. iii% Advertisement of coca-cola is getting much more attractive with cinema house in 0arayangadh city. i% :emale feature print advertisements regarding the product of food; snacksD soft drink; waterD personal and beauty care, household appliances and alcoholic beverage were noticed by all levels of individuals of the society. ii% The female artists and ramp models under the age of .$ or below as female models being portrayed in print advertisements were linked by the individuals of the society. i% Mostly children, young and old age people prefer musical advertisements where as others prefer good wording advertising. ii% *epetition of advertisement of advertisement attracts peoples9 attention and they prefer to choose advertised product, if the price and 1uality of both products are same.

=padhyaya, "#4"

*adio advertising and its impact on purchasing act in consumer goods The *ole of Advertising in brand choice and product positioning with soft drink.

i% 2mpact of radio advertising on customer purchase behaviour. ii% -omparative cost of different forms of advertising in 0epal. i% )ffectiveness of advertising on brand of consumer product. ii% *ole of advertising in product positioning for the consumer prospective. iii% -onsumers importance to advertisement and other promotional tools while making decision. i% The popular media of advertising for the cold drinks which can easily attract the potential consumers. ii% The relationship between the brand preference and advertising. iii% The best choice of consumers on cold drinks. i% The noticing behaviour of individuals on product categories be advertised portraying female models in print advertisement. ii% The attention of individuals over the roles and activities played by female models in print. i% !hat kind of advertisement people generally preferredF ii% ,ow the different groups of people perceive the advertisement from television and their reactions about advertising.

&hrestha, "##(

&hrestha, "##4

The marketing of cold drink in 0arayangadh

Aryal, .///

An examination on female role portrayal in print advertising.

Ehimire, .///

Advertising through television7 impact 8 consumers behaviour.

Eiri, .//"

The -ommunication effect of Advertising and +rand ?reference of 2nstant 0oodles

i% ?opular media of advertising. ii% Advertising appeal and relation between brand performance and advertising 1ualities.

Thakur, .//"

The *ole of Advertising in +rand Goyalty with *eference to &oft <rink

i% )ffectiveness of advertising on brand loyalty. ii% -onsumers' importance to advertising and other promotional tools while making decisions.

Mool, .//@

A comparative study on the effectiveness of promotional tools on sales

i% !hat promotional tools are more acceptable by the customersF ii% !hat made is more wisely used by the marketers as sales promotional tools are best to attract the customers.

i. *adio is the most leading media to create awareness in customer about advertised product. ii. )ducated people are aware of brand because of advertisement but uneducated were found unaffected by advertisement. iii. 0ewspaper advertisement also influences people to buy instant noodles. i% Most of consumers like entertaining advertisement. ii% Advertisement has a great contribution for purchase. iii% )ffective advertising in time as the best tool for brand loyalty. iv% Most of the consumers have given first preference to the test of the product i% ?eople are aware of advertising as a promotional tool rather than other promotional tools and the people watch; listen; read advertisement to get information and entertainment. ii% ?rice discount and cash price are two ma5or sales promotions that attract the customer towards products or services.

+esearch #ethodology +esearch Design The research design of this case study is analytical as well as descriptive in nature. The study collects information relating to the media habits of the population and their attitude towards the different media. The 1uestionnaire has been prepared in such a way that helps to find the role of media in consumer buying behaviour. The 1uestionnaire contained both the ob5ective type and open ended 1uestions. Sample Si0e This study has taken the selected consumers of @.-$' years of age. The respondents are classified in terms of educational level only. This case study research work is based on primary data. The taken sample has been classified on the basis of their level of education highly literate and illiterate%. There were altogether '/ household females in a sample. ,evel of education ,ighly literate ,ighly illiterate Sample Si0e of $opulation Source of Sample M. ?hil. Eraduates Gayman general housewife% Selected sample number @/ @/

S1N1 " . @

Selected Sample of #edia and Non-durable Goods of Household Consumers #edia of Advertising Non-durable Goods of Household consumer Television &oap, &urf 8 &hampoo :M; *adio -osmetic 0ewspaper 0oodles

Sources of Data <ata may be obtained from the primary source. The case study based on primary data that are collected by field survey from M. ?hil. Eraduates and layman general housewife% 3athmandu and there is no hard and fast rule to use data so as per the need of need of this case study research work. Analytical .ools #odels of 2conometric 3Statistical 4 #athematical5 .ools There are so many tools used to get the result of the research work. 0ormally percentage, pie-chart, correlation and regression analysis are used for the analysis of data collected from the field. Among these analytical models or tools, this case study type of research work uses correlation and regression. &?&& and )H-)G software are used for the results of correlation coefficient and regression analysis. Correlation -orrelation analysis is primarily concerned with measuring the direction and strength of linear relationship among the variables. Measurement of the strength of relationship between the two 1uantitative variables and it is usually carried out by simple correlation coefficient, denoted by r. +egression #odel

:or the decades, researchers have used econometric models to estimate the effects of advertising to have the firms set advertising budgets Tellis 8 !eiss, "##$%. The cause and effect relationship is clearly indicated through regression analysis than by correlation. 2n other words, regression analysis is a mathematical measure of the average relationship between two or more variables in terms of original units of data. All of our measures of advertising were based on the 1uestionnaire and respond of respondents about T>, :M;*adio and 0ewspapers. :ollowing regression models were developed for the study of impact on non-durable household consumers9 goods of total advertising, T>, :M;*adio and 0ewspapers. i% ii% iii% iv% T0< J K HA K =.................................................... T& 8 & J K "HT K .H:;* K @H0 K =....................... T- J K "HT K .H:;* K @H0 K =........................... T0 J K "HT K .H:;* K @H0 K =........................... "% .% @% I%

!here, T0< J Total expenditure on 0on-<urable goods. J -onstant J -o-efficient or slope HA J 2mpact of total advertising T& 8 & J Total expenditure on soap and shampoo T- J Total expenditure on cosmetic T0 J Total expenditure on noodles HT J 2mpact of television H:;* J 2mpact of :M;*adio H0 J 2mpact of 0ewspapers T), T& 8 &, T- 8 T0 are the dependent variables HT, H:;* 8 H0 are the independent variables or total explained variables = J )rror or residual terms or unexplained variables $resentation And Interpretation *f Data .able 6 (uying Decisions of Household Consumers Decision (asis )ffect of advertisement )ffect of family discussion )ffect of friends and others &elf discretion Total No1 of +espondents "/ ./ / @/ '/ "( @@ / $/ "// $ercent

Buying Decisions

17%

Effect of advertisement 50% Effect of family discussion Effect of friends and others Self discretion 33%

0%

Simple Correlation Coefficients As per our stated ob5ective, to see the strength and direction of advertising media for the buying habits of non-durable goods of consumer, following result have been found as a result of simple correlation. .able% Correlations (et-een Spend on Non-durable Goods and Advertisement on #edia Advertisement on Advertisement on Advertisement on &pend on &elected 0on-durable T> :M;*adio 0ewspaper Eoods r ?-value r ?-value r ?-value &pend on soap 8 shampoo /.. /.(/I -/.$'$ /.('$ / " &pend on -osmetic -/..#@ /.$(@ -/.I'@ /.@$$ -/.."4 /.'(4 &pend on instant 0oodles / " / " -/.$(( /..@/ Table . shows that there is very low degree of positive correlation coefficient between spend on soap 8 shampoo and watching advertisement on T>. Gikewise, there is moderate degree of negative correlation coefficient between spend on soap 8 shampoo and listening advertisement on :M;*adio. +ut, results shows there is no correlation coefficient between spend on soap 8 shampoo and reading advertisement on 0ewspaper. &imilarly, there is low degree of negative correlation coefficient between spend on cosmetic and advertisement on T>, :M;*adio and 0ewspaper. Above result shows that there is no correlation between spend on instant noodles and advertisement on T> and :M;*adio but there is moderate degree of negative correlation coefficient between spend on instant noodles and advertisement on newspaper. 0ull hypothesis is accepted because all the ?-values are greater than $ L level of significance. 2t means, the relationship between spend on non-durable goods and overall advertisement is insignificant. &o, there is no strong strength between spend on non-durable goods and advertisement on media because results either positive or negative were lies between low degree and moderate degree only. Mostly, there is negative direction between spend on non-durable goods and advertisement on media. +egression +esults and their interpretations To satisfy the second ob5ective following second hypothesis has been stated in the introduction. After running first regression model we obtain following results. T0< t J @$.'#I ".II@% K K "HA /./4(HA /./4@% MMMMMMMMMMMMM.. "%

'

: *.

/.//( /.//.

?- value J /.#@4 * J /./I" 0 J '/

Interpretation: :rom the first regression findings, it can be concluded that one rupee additional increases in advertisement of non-durable goods leads to increase rupee /./4( in total expenditure of household consumers. ,ere, 0ull hypothesis is accepted because the ?-value of : test is greater than $ L level of significance i.e, /.#@4>/./$%. 2t means there is no significant impact expressed by household consumers due to media i.e., T>, :M;*adio and 0ewspapers%. To satisfy the second ob5ective following third hypothesis has been stated in the introduction. After running first regression model we obtain following results. T& 8 & T : *. J @4.(.4 '..I4% @..I. /.4.# K .H:;* "HT /../(HT N /.@I(H:;* -..I@'% -".#($% ?-value J /..I$ * J /.#"" 0 J '/ K N K @H0 N /.@"$H0 -..'"/% K = ..................... .%

Interpretation The findings of second regression e1uation shows that the buying behaviour of household consumers on soap 8 shampoo are not positively affected with the application of different advertisement media. Ane rupee increases in T>, :M;*adio and 0ewspaper advertisement would lead to decrease spend on soap 8 shampoo by *s. /..", *s. /.@$ and *s. /.@. respectively. ,ere, 0ull hypothesis is accepted because the ?-value of : test is greater than $ L level of significance i.e., /..I$>/./$%. 2t means There is no significant impact on the buying behaviour of household consumer with respect to soap 8 shampoo when advertisement shown on T>, :M;*adio and 0ewspaper. To satisfy the second ob5ective following fourth hypothesis has been stated in the introduction. After running first regression model we obtain following results. Tt : *. J -(.$@# -".I/@% @#.$./ /.#4@ K .H:;* "HT /."'$HT K /.$'@H:;* -...I.% @.'##% ?-value J /./.$ * J /.##. 0 J '/ K K K @H0 K /.I.$H0 -..'"/% K = ................. @%

Interpretation: The findings of third regression e1uation shows that the buying behaviour of household consumers on cosmetic items is positively affected with the application of different advertisement media. Ane rupee increases in T>, :M;*adio and 0ewspaper advertisement would lead to increase spend on cosmetic items by *s. /."(, *s. /.$' and *s. /.I@ respectively. ,ere, 0ull hypothesis is re5ected because the ?-value of : test is less than $ L level of significance i.e., /./.$</./$%. 2t means there is significant impact on the buying behaviour of household consumer with respect to cosmetic items when advertisement shown on T>, :M;*adio and 0ewspaper. To satisfy the second ob5ective following fifth hypothesis has been stated in the introduction. After running first regression model we obtain following results. T0 t : J "/.$(( /.#@(% /.$"@ K "HT /."@4HT K /.4#I% ?-value J /.("@ K K .H:;* /./..H:;* /./'#% K @H0 N /./.4H0 -/.".4% K = ................ I%

*.

/.I@$

* J /.'$#

0 J '/

Interpretation: The finding of fourth regression e1uation shows that the buying behaviour of household consumers on cosmetic items is positively affected with the application of different advertisement media like T> and :M;*adio but negatively affected with the application of 0ewspaper. Ane rupee increases in T> and :M;*adio advertisement would lead to increase spend on noodles by *s. /."I and *s. /./. respectively. 2n other hand, one rupees increase in 0ewspaper advertisement would lead to decrease spends on noodles by *s. /./@. ,ere, 0ull hypothesis is accepted because the ?-value of : test is greater than $ L level of significance i.e., /.("@>/./$%. 2t means There is no significant impact on the buying behaviour of household consumer with respect to noodles when advertisement shown on T>, :M;*adio and 0ewspaper. #a or /indings and Conclusions The results or findings of this case study research work have been summari6ed as follows7 The buying decision of highly literate and highly illiterate consumers is not mainly by the cause of advertisement on media. 2n other words, their buying decision about non-durable goods is based on self discretion Table " 8 :igure "%. There is low degree of positive correlation coefficient between spend on soap 8 shampoo and watching advertisement on T>. &imilarly, there is moderate degree of negative correlation coefficient between spend on soap 8 shampoo and listening advertisement on :M;*adio but there is no correlation between spend on soap 8 shampoo and reading advertisement on 0ewspaper. Gikewise, there is low degree of negative correlation coefficient between spend on cosmetic items and watching advertisement on T>, :M;*adio and 0ewspapers Table .%. 2t means, the overall advertisement should not be targeted only on highly literate and highly illiterate household consumers because calculated ?-values indicate that the relationship between advertisement and spend on non-durable goods is insignificant at $L level of significance. The findings of stated first regression model shows that there is no strong evidence on the effectiveness of overall advertising media towards spend on non-durable goods because the effectiveness is insignificant at $L level of significance. The results of stated second regression model indicate that the buying behavior of household consumers on soap 8 shampoo is not influenced positively by the advertisement media and the effectiveness of media is insignificant at $L level of significance. The results of stated third regression model depict that the buying behavior of household consumers on cosmetic items is positively influenced by the different advertisement media and the effectiveness of media is significant at $L level of significance. The results of stated fourth regression model shows that the buying behavior of household consumers on noodles is positively affected with the advertisement media like T> and :M;*adio but negatively affected by the 0ewspapers. The overall effectiveness of media is insignificant at $L level of significance. (I(,I*G+A$H7 Aryal, +. *. .///%. An examination on Female Role Portrayal in Print Advertising . An =npublished Master <egree Thesis &ubmitted to -entral <epartment of Management, T.=. +oyd, ,.!., !estfall, *. 8 &tasch, &.:. .//.%. Marketing Research (5th Ed.). <elhi7 All 2ndia Traveller +ook &ellers and <istributors. -hunawalla, &. A. and &ethia, 3. -. .//"%. Foundations of Advertising heory ! Practice. 2ndia7 ,imalayan ?ublishing ,ouse. Ehimire, *. +. .///%. Advertising hrough elevision" #m$act on %onsumers &ehaviour. An =npublished Master <egree Thesis &ubmitted to -entral <epartment of Management, T.=. Eiri, *.?. .//"%. A 'tudy of the %ommunication Effect of Advertising and &rand Preference of #nstant (oodles. An =npublished Master <egree Thesis &ubmitted to -entral <epartment of Management, T.=. 3hadka, &. .//4%. Fundamentals of advertising. 3athmandu7 +uddha Academic ?ublishers and <istributors.

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