Executive Summary

The word advertising is derived from the Latin word viz, "advertero" "ad" meaning towards and
"verto" meeting towards and "verto" meaning. "I turn" literally specific thing". Simply stated
advertising is the art "says green." Advertising is a general term for and all forms of publicity,
from the cry of the street boy selling newspapers to the most celebrate attention attracts device.
The object always is to bring to public notice some articles or service, to create a demand to
stimulate buying and in general to bring together the man with something to sell and the man
who has means or desires to buy".

Advertising has been defined by different experts. Some of the quoted definition is:

American marketing association has defined advertising as "any paid form of non personal
presentation and promotion of ideas, goods or services by an identified sponsor. The medium
used are print broad cast and direct

The objectives of the study are:

 To find out the consumer preference regarding the most effective

media for Advertisements.
 To study the impact of the Advertisements on the brand preference of consumers.
 To study the impact of the celebrity endorsement on the consumer buying behavior.

The Limitations of the study are:

 This study was conducted in “Lahore” city only. So the opinion of the residents of other city may be different.
 The respondents to this study were very well educated. So the people Illiterate and less educated may have
some different opinion.
 As the primary Data has been collected through Interview and discussion so there is a chance of error because
sometimes people get hesitated in granting correct data.
 INTRODUCTION OF THE STUDY

CONSUMER:

A consumer is an individual who purchase or has the capacity to purchase goods andservices
offered for sale by marketing institutions in order to satisfy personal or household needs, wants
or desires. According to a statement made by Mahatma Gandhi, consumer refers to the following, “A
consumer is the most important visitor on our premises. He is not dependent on us. We are dependent
on him. He is not an outsider to our business. He is part of it. We are not doing him a favor by
serving him. He is doing us a favor by giving us an opportunity to do so”. So consumer is like the blood of
our business and also a satisfied customer is a word of mouth advertisement of a product /
services.

Consumer Durable goods:

Consumer durables involve any type of products purchased by consumers that are manufactured
for long-term use. As opposed to many goods that are intended for consumption in the short
term, consumer durable are intended to endure regular usage for several years or longer before
replacement of the consumer product is required. Just about every household will contain at least
a few items that may be properly considered to be of a consumer durable nature. One of the most
common of all consumer durables would be the furniture found in the home. This would include
items such as sofas, chairs, tables, bed frames, and storage pieces such as chests of drawers and
bookshelf units. While once thought to be limited to only items made of sturdy metal or wood,
any type of furniture today that is intended for use over the period of at least a few years can
rightly be classified as consumer durables. Another common example of customer durables in
the possession of most households is appliances. These items may include ovens, refrigerators,
toasters, and gas or electric water heaters. Consumer durables of this type are intended for use on
continuing basis, and often are sold with some type of warranty or service contract that helps to
ensure the appliance will continue working for an appreciable period of time. The family car is
also understood to be among the various consumer durables owned by many households.
Considered a major investment by many consumers, the expectation is that the vehicle will
remain operational for at least the amount of time it takes for the consumer to pay off any loans
associated with the acquisition. Further, consumers anticipate that the vehicle can be utilized on a
regular basis without fear of being destroyed by the frequent usage.

CONSUMER PREFERENCE:

All marketing starts with the consumer. So consumer is a very important person to amarketer.
Consumer decides what to purchase, for whom to purchase, why to purchase, from where to
purchase, and how much to purchase. In order to become successful marketer, he must know the
liking or disliking of the customers. He must also know the time and the quantity of goods and
services, a consumer may purchase, so that he may store the goods or provide the services
according to the likings of the consumers. Now the whole concept of consumer’s so vereignty prevails.
The manufacturers produce and the sellers sell whatever the consumer likes. In this sense,
“Consumer is the supreme in the market”. As consumers, we play a very vital
role in the health of the economy local, national orinternational.

The decision we make concerning our consumption behavior affect the demand for the basic raw
materials, for the transportation, for the banking, for the production; they affect the employment
of workers and deployment of resources and success of some industries and failures of others.
Thus marketer must understand this.
Preference (or "taste") is a concept, used in the social sciences, particularly economics. It
assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of
these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they
provide. More generally, it can be seen as a source of motivation. In cognitive sciences,
individual preferences enable choice of objectives/goals. The study of the consumer preference
not only focuses on how and why consumers make buying decision, but also focuses on how and
why consumers make choice of the goods they buy and their evaluation of these goods after use.
So for success of any company or product promotion it is very necessary to depart its
concentration towards consumer preference.

Consumer Acceptance:
Acceptance describes consumer willingness to receive and/ to tolerate. For example, customer
might accept the occurrence of a certain number of yearly supply interruptions given a certain
price. Weighing needs or preferences against provided product or service attributes results in the
balance of satisfaction pointing in a negative or positive direction, depending on whether
interests are conflicting or corresponding.
This determines the way in which people evaluate companies‟ or utilities‟ performance. Only when a consumer’s
needs for a stated good or service are met, i.e. when the service provided corresponds with their
preferences, will they feel satisfied.

Acceptance is also used in the literature to mean an affirmative answer to a proposal.

The distinction is subtle but there are occasions where consumers might not agree to a proposal
yet accept the subsequent service in the sense of tolerating it.
 OBJECTIVES OF THE STUDY

 To find out the consumer preference regarding the most effective

media for Advertisements.

 To study the impact of the Advertisements on the brand preference of consumers.

 To study the impact of the celebrity endorsement on the consumer buying behavior.


SCOPE OF THE STUDY
This project will help in finding the impact of advertisement on customer’s buying behavior.
What is the role played by the advertisement to attract the customer to make decision regarding
the purchase goods and services? We very well know that advertisement is not only use for
awareness it also play an important role in brand preference. It also shows how celebrity
endorsement impact customers.

The scope of study for management student gets to apply all their theoretical knowledge in the
market. During study they solve the particular problem given by the market and come to know
the various things practically.

NEED OF THE STUDY

Advertisement is very important aspect for the companies to promote their products and services
to generate sales and earn revenue. For this purpose companies spend lot of money on
advertisement and also pay huge amount to introduce celebrities in their advertisement to make it
more attractive to the customers.

As companies are spending a lot of money on Advertisement, so it becomes very important for
the companies to know whether their advertisements are effective or not. For this purpose we
have taken this as our research problem.
 The Importance of Advertising
Goods and services are produced according to consumers growing and changing desires.
They are competitive tools for companies among their rivals. Companies involved in the
commercial production of goods and services need advertising for several important reasons. The
first reason is that advertising helps to publicize and promote their products to the public thereby
helping to improve sales. Depending on the nature of the product, advertising uses the right
media to get the message across to consumers. For example, in the case of consumer products
such as food, soap and soft drink; the broadcast media is often chosen. Secondly, advertising
helps to reduce distribution costs. Because Importance of Creative Advertising and Marketing
Through the various media advertising messages can go beyond regional and national
boundaries. Advertisements are exposed to a global market via the internet and social networks.
Advertising serves as a tool for competition. In order to compete with others, companies use
creative and appealing advertisements to lure consumers to patronize their brands. Some
companies will go as far as inundating the media with their advertisements in order to ensure that
consumers’ attention is captured. However, Phillip and Raspberry argue that what counts is not
what the company says about itself but rather what people say about it as experience shows that
companies who trumpet heir virtues are barely average.
Advertising for manufacturers has several advantages like promotes products because
people become aware of the existence products and services and lead them to making a purchase
so sales are increasing; increasing of the sales demonstrate higher demand, it means more
production; through advertising companies communicate new products to consumers in an
effective and cost effective way.
Advertising simplifies the task of the sales person and helps consumers reach out to new
products. In addition, through advertising a company can compete with others by showcasing
competitive prices or the benefits of its products and services. Manufactures can also remove
misunderstanding about their products through appropriate advertising. Advertising for
consumers has also several advantages like advertising helps to save consumers time by pointing
them to specific products. Advertising also helps consumers to be more specific during shopping;
consumers can make their choice before going shopping, they become aware of new businesses
and new products and brands; through competition which is enhanced by advertising, some
companies often lower the prices of their products in other make more sales and compete with
others in the market.

Basic Features of Advertising:

On the basis of various definitions it has certain basic features such as:

1. It is a mass non-personal communication.

2. It is a matter of record.

3. It persuades buyers to purchase the goods advertised.

4. It is a mass paid communication.

5. The communication media is diverse such as print (newspapers and magazines)

6. It is also called printed salesmanship because information is spread by means of the written
and printed work and pictures so that people may be induced to act upon it.

Functions of Advertising:
For many firms advertising is the dominant element of the promotional mix – particulars for
those manufacturers who produce convenience goods such as detergent, non – prescription
drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by
maters of automobiles, home appliances, etc, to introduce new product and new product features
its uses its attributes, pt availability etc.

Advertising can also help to convince potential buyers that a firms product or service is
superior to competitors product in make in quality, in price etc. it can create brand image and
reduce the likelihood of brand switching even when competitors lower their prices or offer some
attractive incentives.

Advertising is particularly effective in certain other spheres too such as:

i) When consumer awareness of products or service is at a minimum.

ii) When sales are increasing for all terms in an industry.

iii) When a product is new and incorporates technological advance not strong and.

iv) When primary buying motive exists.

It performance the following functions:

i) Promotion of sales

ii) Introduction of new product awareness.

iii) Mass production facilitation

iv) Carry out research

v) Education of people
 REVIEW OF LITERATURE
Samar Fatima, Samreen Lodhi – Jinnah University for Women This particular research
focuses on the impact of advertisement on the user’s behavior. It explores the factors which are
affected by the advertisement and ultimately influence the buying behavior of the consumers.
The study will help the readers to understand the consumer behavior while purchasing the
cosmetic products so that they can devise appropriate strategy to advertise their product in a best
possible way. The conclusions drawn from the study are based on the responses given by the
consumers in a specific area. This study will be helpful in getting an insight into the perception
of Consumers on Advertisements and its impacts on changing the buying behaviors of
consumers.
Zain-Ul-Abideen (Corresponding Author) “Department of Management Sciences, Abbasia
Campus, The Islamia University of Bahawalpur, Punjab, Pakistan”. Advertising is a form of
communication intended to convince an audience (viewers, readers or listeners) to purchase or
take some action upon products, information, or services etc. This paper investigates the
relationship between independent variables which are environmental response and emotional
response with attitudinal and behavioral aspect of consumer buying behavior, by tapping the
responses of 200 respondents using telecommunication services from Rawalpindi, Islamabad,
and Lahore (cities of Pakistan). The major findings of the study demonstrate an overall normal
association between the variables but in-depth analysis found that emotional response of
consumer purchase behavior is the variable that results into strong association with the consumer
buying behavior. It is true that people purchase those brands with which they are emotionally
attached. This study reports new evidences in the field of consumer buying behavior of
consumers pertaining to the local markets of these cities of Pakistan.
Mesay Sata (School of Management and Accounting Hawassa University, Ethiopia)
The purpose of this study is to investigate the factors affecting the decision of buying mobile
phone devices in Hawassa town. In order to accomplish the objectives of the study, a sample of
246 consumers were taken by using simple random sampling technique. Both primary and
secondary data were explored. Moreover, six important factors i.e. price, social group, product
features, brand name, durability and after sales services were selected and analyzed through the
use of correlation and multiple regressions analysis. From the analysis, it was clear that
consumer’s value price followed by mobile phone features as the most important variable
amongst all and it also acted as a motivational force that influences them to go for a mobile
phone purchase decision. The study suggested that the mobile phone sellers should consider the
above mentioned factors to equate the opportunity.
Dr. Sathya Swaroop Debasish1, Dr Nabaghan Mallick (2005): The present study aims to
examine the comparative buying behavior of rural and urban counterparts towards the purchase
of mobile phone. To achieve these objectives an attempt is made to compare and analyze the
factors (Price, Quality, Style, Functions and Brand) which act as motivators both for rural and
urban people in purchase of mobile phone. A structured questionnaire was prepared using the 5-
point Likert scale that was administered to 400 mobile users /respondents for obtaining primary
data from both urban and rural consumer of Ganjam district of the state of Odisha, India. The
present study indicates that there is no significant difference of price and style consciousness for
purchase of mobile phone between rural and urban consumers but there is significant difference
of quality, functions and brand consciousness for purchase of mobile phone between rural and
urban consumers. Study indicates that rural consumers are less quality, functions and brand
conscious as compared to their urban counterparts. The study indicates that rural consumer
mostly use friends (45%), TV(17%) and mobile phone retailer(12%) as the source of
information, the purchase decision is taken by self decision(52%) with the help of family (29%)
and friends (18%) and most of rural consumers are satisfied (84%) in Ganjam District. Further,
the research findings may guide various mobile manufacturing companies about modification
required in present marketing strategies applied for tapping urban markets and to decide, if
possible, and to what extent these strategies can be molded and applied successfully to the rural
markets.
Miss Amanda Spry etal, (2011) This research examines the impact of celebrity credibility on
consumer-based equity of the endorsed brand. The mediating role of brand credibility and the
moderating role of the type of branding (parent versus sub-brand) employed by the
endorsed brand on the endorser credibility-brand equity relationship are also examined. The
endorser credibility-brand equity relationship was developed using associative learning
principles whereas the brand signaling theory was applied to examine the mediating role of brand
credibility. Results suggest endorser credibility has an indirect impact on brand equity when this
relationships mediated by brand credibility. This mediating relationship was moderated by type
of branding. However, the µendorser credibility-brand credibility and µendorser credibility-
brand equity relationships did not vary according to the type of branding employed.
Shumaila Ahmed and Ayesha Ashfaq The present research paper is focusing on the impact of
advertising on consumer’s buying behaviors. Brand image, persuasiveness and celebrity
endorsement in the advertising are the key factors, which raise the consumers’ intentions towards
the product and buying behaviors. The buying behavior is strongly influenced by image of the
product which is build by the advertisers. The primary data of the study is collected through
questionnaires and secondary data was collected through internet, journals and business
magazines. This survey study was conducted in January, 2013. A sample of 120 respondents was
taken, out of which 50 were in government or semi-government services, while 30 were taken
from business class and the rest 40 were private employees. The study explores that a creative
and well executed advertisement has always a great impact on the buying trends or purchasing
behaviors of the consumers. At the same time quality of the product and price are also included
with their strong impact on buying behavior of consumer. Likewise to some extent the celebrity
endorsement also matters in the buying behavior. Therefore the study concludes that the positive
impact of all these factors, on the buying behavior of the consumer proves the loyalty of
consumer towards brand which helps in promotion of the advertised product and changes the
buying behavior towards buying intentions.

Zhou Dongsheng(2003) The purpose of this paper is to investigate the impact of short-term
advertising on long-term sales of consumer durables and nondurables in China by using cross-
sectional time-series television advertising and sales data. As China hastens its transformation to
a market economy, its advertising industry has witnessed one of the fastest growth rates in the
world, averaging 35% annually, far more than the country's GDP growth rate and the global
advertising growth rate(Hong Kong Trade Development Council 1998; Zhou, Zhang, and
Vertinsky 2002 6, one of the years studied in this paper, companies in China spent over U.S.$
5 billion on advertising (Zenith Media 1998). Was this money well spent in creating long-term
effects on sales? There has been criticism that it was not (Zhuang, Zhou, and Ouyang 2001). As
the world's most populous country, with rapidly and steadily growing consumer incomes, China
has become an attractive market for many multinational corporations, especially due to its recent
accession to the World Trade Organization. If corporations can use their marketing budgets more
effectively through cutting advertising wastage,
Akwasi Ampofo The general objective of the study was to find out if there is any effect of
advertising on consumer buying behavior of cosmetic products in Bangalore.
In our quest to achieve the general objective, the following specific objectives were set and
formulated to guide in data collection and analysis:
I. To know the extent to which purchases of consumers are based on advertisement.
ii. To find the age and social group that is influenced by advertised cosmetic products.
iii. To find out the motives and reasons of consumers for demanding advertised cosmetic
products.
iv. To know the other factors influencing consumer purchase besides advertisements

The study continued with review of literature on advertising and the consumer buying behavior.
It then followed with the methodology employed in the study. The findings and results were then
presented which was followed by conclusion and recommendations for cosmetic firms.
Mark M. Moriart (2002) In this research paper addressed the question of how long the carryover
effect of advertising on sales persists. Appropriate cautions are included in the conclusions
reached by Clarke since the preponderance of studies that he reviewed involved mature
frequently purchased low-priced products. His conclusion is that, for such products, the
carryover effect of advertising lasts a matter of months rather than years. The current study
examines durable goods and provides preliminary evidence that for some durables, advertising
effects may have a duration interval that exceeds a year.
Pamela L. Alreck et al (1999) the marketer's principal objective is typically to build a relationship
with buyers, rather than merely to make a single sale. Ideally, the essence of that relationship
consists of a strong bond between the buyer and the brand. Outlines six strategies for building
that relationship: linking the brand to a particular need; associating it with a pleasant mood;
appealing to subconscious motives; conditioning buyers to prefer the brand through reward;
penetrating perceptual and cognitive barriers to create preference; and providing attractive
models for buyers to emulate. The choice of an individual strategy or combination depends
mainly on the nature of the branded product or service. The success of the strategy depends
heavily on the marketer's understanding of the preference building and bonding process.
Raja gopal, (2006) the identity of brand, from the perspective of consumers, is the foundation of a
good brand-building program. Effective brand management encompassing brand personality is
of paramount importance in reaching the overall company goals of satisfaction, loyalty, and
profitability. Advertising effectiveness can be measured by brand and advertising evaluations.
The purpose of this paper is to analyze the strategies of effective brand building and managing
the same with reference to acquiring optimum customer value for long-run competitive gains.
There are many psychographic variables like emotions associated with the brand image which
constitute the personality of a brand. In case typical product category advertisements are
associated with negative effect, the particular advertising functions act as a counter-attitudinal
message, which is more persuasive in the case of a mismatch rather than a match with the
category advertisements. However, a persuasive advertising may affect consumer preferences. It
will be of critical importance for future researchers and practitioners to understand the
increasingly complex variety of factors underlying and influencing the linkages between brands
and customer relationship.
Michelle Groene (2008) The increasingly widespread use of digital video recorders (referred to as
DVR from this point forward) has given consumers control over the advertising they watch or do
not watch during their television viewing experience. Headlines in the media have proclaimed
that DVR will lead to advertising demise, but in conducting research on this topic it would
appear that the industry professionals themselves are not ready to kill the-second spot just yet.
DVR is the latest challenge for an industry that has dealt with advertising avoidance for many
years; the current broadcasting/advertising model still exists despite previous threats like cable
television, the remote control and the VCR, which speaks to the resiliency of the industry. The
academic and professional research on the topic finds that, like the various technological
inventions before it, DVR does indeed have an impact on advertising, but the studies yield
some positive results for advertisers as well. Thus, the argument that will be made that DVR is
an opportunity for the advertising industry to reinvent itself and remain an effective force in the
era of consumer control; using the literature that exists on the topic to determine what still needs
to be researched and implementing some of these methods in order to create better, more
effective advertising.
Unnava & Brunkrant (1991) He did a study whose main objective was to compare the effects of
varied v/s same execution of advertisements on brand name memory when the number of
exposure to ads is held constant. They found out that varied advertisement executions enhance
memory for brand name over repeated same executions. In varied advertisement executions
learning was superior when execution remained same.
(Grewal Raj deep et al 2004) In an attempt to bring consumer psychology theories into research on
the timing of repurchase of consumer durables, the authors suggest that attitude functions
(knowledge, value expressive, social adjustive, and utilitarian) can help explain and predict inter
purchase intervals. Adopting an interactions perspective, the authors propose that the effect of
the attitude functions is contingent on contextual factors, which they theorize as the nature of the
product (along public- private and luxury-necessity dimensions) and the nature of the decision
(forced or unforced 11 purchase decision). Hypothesis testing is facilitated by survey data on
actual purchase decisions and hazard models that incorporate individual heterogeneity. The
results support the suggested role of attitude functions in explaining and predicting inter
purchase intervals and suggest means by which managers can position their products to shorten
inter purchase intervals.
Fareena Sultan and Russell S. Winer, In this paper, consumers' time preferences for technology
driven consumer durable innovations are examined. We calculate from survey data rates of
time preference for products and product attributes. Several propositions related to these
constructs are empirically tested. The results show that, over subjects, the product rate is
different from the economic discount rate which captures time preferences for money that
product rates of time preference vary by individual, by product and over time, and that attribute
level rates of time preference may vary by attribute.
Gupta&Devi (2008) studied It will be around the impact of TV advertisements on buying pattern
of adolescent girls. He found that the advertisement played a vital role in introducing a new
product in the family list and making better choice during shopping. The girls¶ utilized pocket
money received every month for shopping. The adolescent girl is influenced by T.V
advertisement when he purchases clothing they were guided by fashion, friend and boutiques.
The respondents preferred to buy branded and standardized product which are more advertised
on television.
Hoek &Gendall (2006) studied concern advertising and obesity: A behavioral perspective. The
study it observed the levels of obesity in the western countries has grown, and the researchers
forecast a rapid growth in the medical care that a progressively more obese population will
require .Policy makers have examined the factors contributing to this problem, he found
advertising that promotes high fat and high sugar products to children has come under increasing
secreting. This reasoning overlooks the role advertising plays in the reinforcing and normalizing
behavior, however, and it assumes that only that only direct link merit regulatory attention.
This study presents an alternative analysis of how marketing con tributes to obesity and uses
behavior modification theory to analyses the fast-food industry's promotions.
Enwalled, et al (2005). The influence of advertising on consumer brand preference. Re examined
the role played by advertising influencing consumer’s preference for Bourn vita which is one of
lading food drinks in the food and Beverage industry in Nigeria. Results revealed that both male
and female and different age groups were equally.
Dillon, etal. (1997). Investigated the factors affecting the consumer behavior on durable goods
and foot items. The sample consisted 150 females 75 from rural and the anther 75 urban areas
from. The information about this study pointed the rural respondents given the advertisement
through radio primary importance and the other media like posters and magazines were least
affected, where as the urban respondents were affected more by television and
magazines. Various studies have been conducted on the effects of television advertisement on the
Marketing operations and consumer behavior.
Carolyn (1995) studied the cultural differences in message strategies in the USA and Japan; he
found that the USA television commercial contained informational cues and comparative
advertising compared with the Japan consumer.
Muneer (1995) studied the social and economical effects of advertisement on the Saudi consumer.
He found that the advertisement provides the knowledge about new products and it helps them
select the best products. However,
 RESEARCH METHODOLOGY
Before examining types of research designs it is important to be clear about the role and purpose
of research design. We need to understand what research design is and what it’s not. We need to
know where design into the whole research process from framing a question to finally analyzing
and reporting data.

RESEARCH DESIGN:

The purpose of the study is “To Study the Impact of Advertisement on consumer behavior”
Hence descriptive research design used for this study. A survey will be conducted through which
an analysis will be drowned.

SAMPLE SIZE:
A sample of “100” sample was taken for the purpose of study and analysis.

SAMPLING UNIT:
Sampling unit consists of all customers having consumer durable goods in Lahore.

SAMPLING TECHNIQUE:
Convenience sampling technique (non probability sampling) will be used for the survey.
Questionnaire filled by the selected customers.

DATA COLLECTION:
Data was collected through primary and secondary sources.

1: Primary data:

Primary data was collected with the help of structured questionnaire and personal interview.

2: Secondary data:

Source of secondary data was collected with help of published reports, magazines, newspapers
and the websites.

Tools for Data collection:

1: One on one interview with people from the industry.
2: Interviewing the customers directly
3: Questionnaires.
DATA INTERPETATION TOOLS
The most often tools used to Examine are SPSS.

1. Percentage.

2. Pie Charts.

3. Chi square test

HYPOTHESIS FORMULATION:
It is basically a presumption which Researcher uses when they do research.

For objective one:

Null: -

There is a no significant effect of the Advertisements on the brand preference of consumers.

Alternative:-

There is a significant effect of the Advertisements on the brand preference of consumers.

For objective two:

Null: -

There is no difference in the consumer preference regarding the most effective media for
Advertisements.

Alternative: -

There is a difference in the consumer preference regarding the most effective media for
Advertisements.

For objective three:

Null: -

There is no significant effect of the celebrity endorsement on the consumer buying behavior.

Alternative: -

There is a significant effect of the celebrity endorsement on the consumer buying behavior.