Volume 3 Issue 1 January 2014

ISSN 2277-8098

An Empirical Study on Effectiveness of Advertising on Purchase Decision of Two Wheeler Vehicles with Special Reference to Bengulureans Prof. Pradeep Biradar Asst.Professor, Department of Management Studies, K.S.School of Engineering and Management, Bangalore Prof. K.M.Prashant Lecturer, Department of Commerce & Management Studies, Veershaiva College, Bellary.

Abstract The main purpose of advertising is to promote ideas & create sales .Advertising attracts the consumers attention, gets a reaction& sets the advertisers product apart from the competitions. It plays an important role in changing the consumer purchase decisions & adapting to any product or service in market. As from few years advertising is major promotional tool, which pursuing the consumers to meet their needs & fulfill promises that the product will give them special satisfaction. Hence the advertising agency, the media & the consumers view ads according to their expectations & opportunities This study deals with the impact of ads in purchasing decisions of two wheelers among men & women customers & advertising strategy to address, attract & induce people to decide on purchase of a branded product. This study describes the major factors, which impact the purchase pattern of consumers. The study concludes that better mileage, price & engine power will affect the purchase decisions of consumers with proper advertising media support to make aware about existence of product in market. Hence its a great challenge for an advertiser is to make the insights about product more attractive, distinctive, and noticeable for customers. Keywords: Advertising, Promotional tools, Two wheelers, men/women/youngster customers.

Introduction Currently, India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of two wheelers produced and the sales of two-wheelers respectively. The two-wheeler market has emerged as the most vibrant and transforming segment of the overall Indian automobile industry, witnessing an unprecedented growth. Rising rural demand and fuel efficiency are among the major factors boosting the growth in the market. Despite the economic slowdown, the Indian automobile industry has been performing consistently well, compared to other major markets of the world. The Indian two-wheeler market possesses a significant potential, and is anticipated to grow at a CAGR of around 11% during FY 2011- 2015 to Asia Pacific Journal of Management & Entrepreneurship Research (APJMER) 247 | P a g e

Volume 3 Issue 1 January 2014 reach 17.8 Million Units by FY 2015-end.

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There are many two-wheeler manufacturers in India & The major key players in the 2-wheeler industry are Hero Honda, Bajaj Auto Ltd (Bajaj Auto), TVS Motor Company Ltd (TVS) and Honda Motorcycle & Scooter India, Private Limited (HMSI) accounting for over 93% of the sale in the domestic two wheeler market. At present the dominant products of the automobile industry are Two Wheelers with a market share of over 75% and passenger cars with a market share of about 16%, Commercial vehicles and three wheelers share about 9% of the market between them & also two wheelers industry are growing rapidly @30 percent annually. Bikes & scooters are considered to be favorites among both youngsters & elders generation & they also cover the largest share in two wheelers industry. With an expanding market and entry of new players over the last few years, the Indian two wheeler industry is now approaching a stage of maturity. Previously, there were only a handful of two-wheeler models available in the country. The level of technology change in the Motor vehicle Industry has been high hence further investment in new technologies will help the players to be more competitive. The key to success in the industry is to improve labor productivity, labor flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Literature Review Advertisers pay a particular attention to the customer in order to attract and retain him/her. According to Ph. Kotler and others (2003), D. Jokubauskas (2003), both the businesses and Individual sellers should ask themselves, that how should be the advertising of their products and Services has impact on the customer & also to know how customer should take it. Doraszelski and Markovich (2007) are the first to consider, in a theoretical framework, the long-run effect of advertising through the consumer choice set (which they call awareness advertising). They propose two different dynamic models of advertising, the goodwill and awareness advertising models, to study the effect of advertising on industry structure. Dubey & Patel (2004) founded that the products used by a customer are not necessarily those of advertisements they liked. The key lies not only in the attractiveness of the advertisements, but also the interest of the target. Chandok (2005) research conveys that, television medium is the most attractive and important place to advertise. Most of the companies try to target young people, women, men by television, as majority of the customers will remain glued to the television media and enjoy what they see. Kavitha (2006) the advantage of television over the other mediums is that it is perceived as a combination of audio and video features; it provides products with instant validity and prominence Asia Pacific Journal of Management & Entrepreneurship Research (APJMER) 248 | P a g e

Volume 3 Issue 1 January 2014 and offers the greatest possibility for creative advertising. Objective of the Study To know the impact of advertisement on two wheeler purchase.

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To study the relationship between advertising & purchase decisions of consumers To identify the key factors & awareness level that influences on consumer purchase decision. To study the consumers opinion of their two wheelers regarding its features like appearance, mileage, price etc., Scope of the Study This study will shows the impact of ads in buying pattern or purchase decisions of the consumers and also this research highlights about the effectiveness of advertising media. These results will pave of the way for the key two wheeler marketers to enhance their promotional & broadcasting measures in order to induce the customer to assist in purchase decision effectively. Limitation of the Study The study is only restricted to Bangalore. Biased answer & responses from the respondents. Lack of time. Advertising is not only the parameter to access the purchase decisions of the consumers. Research Methodology Sources of data: The primary data is collected by circulation of questionnaire to a sample size of 100respondents selected from Bangalore city both men & women. Hence convenience sampling techniques is used in collection of data through structured questionnaires from the respondents. The secondary data is collected from various textbooks, newspapers, magazines & websites so on. Data Analysis 1. Table shows about various media get your attention in purchase decision Particulars Total respondents No. of respondents %of the Respondents 28 17.3 36 14.7 249 | P a g e

Print Radio Television Word of mouth

75 75 75 75

21 13 27 11

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Volume 3 Issue 1 January 2014 others 75 3 4

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Various ads media influence purchase decision

40% 30% 20% 10% 0% Print Radio Television Word of mouth Other

2. Table shows Favorite two wheelers ads of consumers Particulars Respondents Hero & Honda Bajaj Yamaha TVS others Total 29 16 13 11 06 75

%of the Respondents 38.7 21.3 17.3 14.7 8 100

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3. Table shows Customer opinions about impact of ads will influence purchase decisions. Particulars Respondents %of the Respondents Yes 47 63 No 28 37 Total 75 100

Customer opinion about ads impact

37% 63%
Yes No

4. Table shows most likely factors to be considered in ads for purchase decisions of two wheelers. Particulars No. of %of the Respondents respondents 17 22.7 Contents of ads(Product highlights Usage & Customer feedbacks Products demo price others Total 16 21 19 2 75 21.3 28 25.3 2.7 100 251 | P a g e

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Most likely factors to be considered in advertisement

30.00% 25.00%
20.00% 15.00%

10.00% 5.00% 0.00%

22.70%

28%
21.30%

25.30% 2.70%

Contents of ads(Product highlights

Usage & Customer feedbacks

Products demo

price

others

5. Table shows Celebritys endorsement ads create impact on purchase decision. Particulars No. of respondents %of the Respondents Yes 18 24 Yes but to little extent 26 34.7 Not At all 31 41.3 Total 75 100

Impact of celebritys endorsement ads

41.30%

24%
Yes

34.70%

Yes but to little extent Not at all

6. Table shows Level of importance of ads regarding sale of two wheelers. Level of Total Highly Important Neutral Less importance important important Mileage 75 36 31 7 1 100% 48 41.3 9.3 1.4 Speed pickup 75 38 21 2 13 100 50.7 28 2.7 17.3 Outlook & colors 75 38 21 2 9 100 50.7 28 2.7 12 Asia Pacific Journal of Management & Entrepreneurship Research (APJMER)

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Volume 3 Issue 1 January 2014 Brand 75 100 75 100 31 41.3 30 40 33 44 28 37.3 2 2.7 8 10.7 2 2.7 8 10.7

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Services

60% 50%

48% 50.70% 50.70% 41.30%

40%
30%

20%
10% 0%

44% 41.30% 37.30% 40% 28%17.30% 28% 12% 9.30% 10.70% 1.40% 10.70% 2.70% 2.70% 2.70% 2.70%

Highly important Important

Not important
Neutral

Neutral

Less important Not important

Highly important

7. Table shows Customer Opinion towards POD ads, display and live experience of the product influence in their purchase decision Particulars No. of respondents % of the respondents Yes 25 33.3 Yes to some extent 21 28 No 29 38.7 Total 75 100

Opinion towards POD ads,display & live experience

24% 41.30% Yes Yes but to little extent 34.70%
Not At all

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Volume 3 Issue 1 January 2014 8. Table shows Influence of family member on purchase decisions Particulars No. of respondents % of respondents Yes 45 60 No 30 40 Total 75 100

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Influence of family member on purchase decision

40% 60%
Yes No

9. Table shows Evaluation of advertising message for purchase decision Particulars No. of respondents %of respondents Very bad 5 6.7 Bad 9 12 Average 17 22.6 Well 26 34.7 Very well 18 24 Total 75 100

Evaluation of ads message for purchase

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Very bad Bad Average Well Very well
12% 6.70% 34.70% Series 1 24%

22.60%

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10. Table shows Customer involvement in purchase decisions of two wheelers after advertisement impact Particulars No. of respondents % of respondents Highly involvement 54 72 Low involvement 21 28 Total 75 100

Level of involment after ads impact

28%
Highly involvement

72%

Low involvement

Findings Most of the respondents get influenced through television as 36%, where remaining advertising techniques are not yet reached to the customers to the maximum extent. Majority of the respondents shows interest to buy Hero & Honda vehicles after viewing ads because customers feel that two wheeler has more durability, mileage & reliability. Majority of the customers believe in pre purchase decision (product demo). Most of the respondents given equal importance to the speed pickup, outlook & mileage ads Most of the respondents accept family members opinions while purchasing two wheeler after the influence of advertisement. Suggestions Company must adopt numerous other traditional support media like ads in theater lobbies, at kiosks to promote their two wheeler products. Advertisers must adopt promotional pull strategy to create demand among customers & encourage them to request the product from retailers/distributors Product marketers must develop & implement IMC program which lays a strong foundation for market analysis, target marketing, & positioning & coordination of various marketing mix elements Its necessary that customer should purchase two wheeler by considering key factors like its mileage, speed pickup, brand & price after viewing the various advertisements. Conclusions: This paper attempts to know the advertising impact on two wheeler purchase decisions of customers Asia Pacific Journal of Management & Entrepreneurship Research (APJMER) 255 | P a g e

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& also know the various advertising tactics used by companies to attract the customers. Thus this paper concludes that Integrated Marketing Communication programs play a major role in target analysis, positioning of the brand in market & promotion of the product towards customer. Reference S.N Murthy & Bhojanna (2010), Advertising , Excel books Pg4,Pg 333. George E Belch, Michael A Belch & keyoor purani(2010), Advertising & promotion, Tata McGraw Hill publication ,Pg 778,Pg 136. Y L R Moorthy (2010), Brand management,vikas publishing house pg 100. http://en.wikipedia.org/wiki/Durable_good http://www.businessdictionary.com/definition/advertisement-ad.html http://www.slideshare.net/IBEFIndia/consumer-durable-august-2013 http://en.wikipedia.org/wiki/Consumer_behaviour

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