IMPACT OF ADVERTISEMENTS AND FEMALE PEER

GROUP ON BUYING DECISION OF MILLENNIAL

FEMALES: A COMPARATIVE STUDY

INTRODUCTION
Organizations are facing the greatest challenge in finding practical ways
to impress prospects and push their products and services into their
minds. The organizations will be able to do this only if they understand
the attitude, behavior and value of their customers. It is not easy to do.
But it is being done.
In both emerging markets and developed nations, women's power of
influence extends well beyond the traditional roles of family and
education to government, business, and the environment.
Women are the worlds most powerful consumers, and their impact on the
economy is growing every year. The global incomes of women are
predicted to reach a staggering $18 trillion by 2018, according to global
professional services firm Ernst and Young.Organizations need to devote
time, resources and energy to understand this key consumer in order to
create a winning situation.
According to a survey conducted by AMP agency in 2007A womans
approach to shopping is very much part of who she is; it is part of her
DNA. The way a woman shops when she is 18 years old is the same way
she is going to shop when she is 43 years old. AMP classified women in 4
categories based on their mind-sets which influence their shopping
patterns:

A) Social Catalysts. This group represents slightly more than one-third

of women. They tend to be planners, organizers, take pride in their
friendship status, and consider themselves the expert within their social
circle. As a consequence, they tend to be influencers. Almost 80% of
this group think a night on the town is money well spent, but they are
likely to seek out bargains to keep up with the latest trends.
B) Natural Hybrids. This group of stable and poised women represents
about one-third of women, slightly less than the social catalyst group. The
natural hybrids seem to operate in a continual state of equilibrium. They
know theres a time and place for everything a time to spend, and a time
to save. Their approach to shopping falls between safe, practical
purchases and splurges. They tend to purchase classic products: longlasting items that arent too trendy.
C) Content Responsibles. About one-fifth of women neither set nor
spread trends. This group tends to treat shopping as an errand or chore,
rather than a fun experience or an adventure. However, they tend to be
lifelong and increasingly loyal customers. 80% do not consider social
status an important part of their life. Like most men, these practical,
responsible, loyal consumers crave a hassle-free shopping experience.
D)Cultural Artists. Representing slightly more than 1 in 10, women in
this group are considered the super shoppers, constantly trying different
things and starting new trends. They are the group companies actively
seek for new products.
Conceptual Framework
Purchase decision the steps taken by a consumer to choose to purchase
a product (Manning & Reece, 2001). Advertisements develop self2

concepts in order to induce purchase decisions. A purchase decision is

composed of a sequence of decisions, and different age group may play
different roles at different stages.
Advertisements aim to create customers opinion to certain product or
service (Kotler, Armstrong, Saunders, Wong 2001).
Advertisement is a form of non-personal promotion of products and
services, which has been paid and forwarded through selected medium.
(Brassington, Pettitt 2006)
Advertisement is a major influencing factor in consumer buying behavior.
However WOM is more powerful than advertisement. It is because
advertisement talks about the product/ service, brand or the organization,
but WOM carries with it the experience in purchase/ usage and opinion to
decide on trying or adopting the product. (Whan and Parker, 1977).
Today younger consumers are more susceptible to their friends, peers,
social groups etc. and hence the impact of WOM is more
(Bakewell and Mitchell, 2003).
Millennial Generation refers to the demographic cohort between
Generation X and Generation Y. Most researchers and commentators use
birth years ranging from 1980s to around 2000.Millennials are defined as
between the ages 18 years to 34 years in 2015.The number of millennials
till 2015 has been estimated as 75.3 million.
Female millennials represent the females in the age group of 18 years to
34 years in 2015.
According to an article by Boston consulting group in 2013 The brand
choices of U.S. Millennials are also more likely to be influenced by peers
than are those of older consumers. In fact, 28 percent of younger

Millennials and 23 percent of older Millennials said that they are more
likely not to purchase or use brands that their friends disapprove of.
Another article in continuum said that throughout the entire consumer
journey, women use each other as experts, and themselves as the ultimate
experience filter. Women are heavily influenced by other women's
opinions throughout the purchasing journey and they look to each other
as sources of advice and for real-time reviews of products. As a result of
this powerful communication, businesses can quickly decline or improve
based on how they adopt to these new reactions.
A happy consumer is the best advertiser for any organization. It is
because a happy customer is the satisfied customer. He never keeps the
satisfaction to himself, but shares it with others and thus influences their
buying decisions (Bearden, Netemeyer and Teel,1989) Marketers look out
for styles, colour and trends for a trendy future. Ensure plenty of usage of
WOM technique would help them in promoting their products and
services.
Rajamohan & Srinivas (2014). Observed that word of mouth has a
significant influence on the buying decision of women. Word of mouth is
an invisible and powerful tool for influencing the women of today.
Need of the study
There has been considerable research on the impact of advertisements on
buying decisions of consumers but most researchers have focused on
understanding the impact of advertisements on consumer behavior and
very few researchers have tried to identify the influence of female peer
groups on purchase decisions of millennial females. As female consumers
are one of the important consumer segments and tapping them could
result in beneficial results for the organizations. So, there is a need to

identify the impact of peer influence on purchase decision of millennial

female segment.
Another reason to carry out this research is to compare the effectiveness
of peer influence and advertisements on buying decisions of millennial
females.
OBJECTIVES
1. To know the relationship between personal characteristics and
buying decision of millennial females.
2. To know the impact of female peers opinion on buying decision of
millennial females.
3. To identify the impact of advertisements on buying decisions of
millennial females.
4. To compare the impact of advertisements and female peer
influence on buying decisions of millennial females.
HYPOTHESES
1. There is no significant relationship between personal
characteristics and buying decision of millennial females.
2. There is no significant impact of female peers opinion on buying
decision of millennial females.
3. There is no significant impact of advertisements on buying
decisions of millennial females.
Research Methodology
This study will be conducted on a sample size of 600 females
within Chandigarh. The data will be collected through structured
questionnaire and will be pre-tested.
Universe
The Universe of this study will be the Chandigarh.
Sampling Technique
In order to identify the characteristics of millennial females non-

probability sampling will be used as some respondents are more

likely to get selected than others. Purposive sampling technique
will be used in the study as it will represent most of the population
and will help to achieve accurate results.
Sampling Frame
Sampling frame is of females in Chandigarh who are in the age
group of 18 years to 34 years.
Data Collection
A standardized pre-tested questionnaire will be used as a primary
tool for data collection. And secondary data will be collected
through various books on this subject, national and international
journals , conference papers, unpublished dissertations and theses,
online resources and website browsing .
Statistical Tools
Appropriate statistical test will be used to accomplish the
Objectives of the study. Descriptive statistics which includes
(mean, standard deviation), ANOVA and ttest will be used. SPSS
software will be used to analyze the data.
To understand the relationship and impact of factors significance
analysis, correlation and regression/structure equation modeling
will be used.

PROPOSED CHAPTER SCHEME

Chapter 1:Introduction
This chapter will consist of theoretical framework regarding the research
topic.
Chapter 2:Review of Literature
This chapter will contain existing literature on the topic under study,

which will be abstracted and reviewed.

Chapter 3:Research Methodology
This chapter will consist of need and purpose of study, Objectives of the
study, Research design, sample size, sampling techniques, data collection
tools and statistical tests.
Chapter 4:Analysis of the data and Interpretation
This chapter will include the analysis of effectiveness of social media
advertising on purchase decision.
Chapter 5:Results and Discussion
In this chapter objectives to be achieved and hypotheses to be tested will
be discussed. The data will be represented in tabular form and will be
discussed with suitable charts and graphs
Chapter 6:Conclusion and Recommendations
The findings and conclusions based on data analysis will be given and
recommendations for further study will be described.