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CHAPTER I

INTRODUCTION

Background of the Study

In today’s highly competitive world, advertising plays an important role in business.

Advertisement is a form of communication used to help sell products and services. It commonly

communicates a message including the name of the product or service and how it could potentially

benefit the consumer.The advertisements are one of the most visible strategy of marketing.

Advertisements cannot only change emotions but give subliminal message.

One of the most recreation sources that is used because of its audio-visual communication is

the television. Since majority of the people spend more hours watching television more than any

other media, it is called the “king” of the advertising media. (Liraz, 2011). Because people

frequently watch televisions, most business organizations made television advertisements as a

strategy to promote their products.

Nowadays, there is a competition among marketers to grab consumers attention. Firms

generally try to increase demand of goods and services by influencing customer’s preferences

through advertising. Television advertising employs techniques that can capture consumer’s

attention such as humor, catchy and pleasing music, jingles, lyrics and repeated messages.

Television advertising today seems to be everywhere and ever presenting exerting a far

reaching influence on the daily lives of people. Advertisements develop self-concepts in order to

induce purchase decisions. Television advertising is an extremely important marketing tool as well
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as powerful communication medium. The basic objective of any advertisement is to stimulate sales,

direct or indirect by trying to make tall class about product performance.

Therefore, the researchers will conduct the study to know the impacts of television

advertisements on consumer’s preferences specifically the Grade 12 ABM Senior High School

Students of PHINMA- University of Pangasinan and how effective is television advertising in

convincing consumers to buy products.

Statement of the Problem

The study aims to determine the impacts of television advertisments on consumer’s

preferences.

Specifically, the study is required to answer the following questions:

1. In what way can television advertisements affect consumers?

2. What are the preferences of consumers among the respondents?

3. What is the importance of television advertisements?

4. Is there a significant relationship between the preferences of consumers and importance of

television advertisments?

Hypotheses

 Television advertisements affects the consumer’s preferences when it comes to

buying products.
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 There is a significant relationship between the preferences of consumers and

importance of television advertisments.

Conceptual Framework

Impact of Consumer’s
Television Preferences
Advertisements

Independent Variable Dependent Variable

Significance of the Study

Advertising is an important aspect of the companies to promote their product and generate

sales. Advertisements used in today’s world are creative and innovative. The only way to capture

the consumer’s attention is to make the advertisement entertaining, interesting and relevant.

Consumer is very important to a marketer. Consumer decides what to purchase, for whom to

purchase, how much to purchase and from where to purchase. In order to be a successful marketer,

a marketer must know the preference of the customer.

This study will help firms understand the importance of advertising and the effects of

business advertisement on the consumer’s preferences. This study will go a long way in helping

firms and marketers to adopt good advertising strategies, and appealing brand designs to help get

more consumers to buy and avail their products and services.

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Definition of Terms

For the purpose of having a better understanding of the study, the following terms are defined

operationally:

Advertisement. Something that is shown to the public that involves promoting

products or services.

Subliminal. Relating to things that influence own ideas.

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CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter includes ideas, finished thesis, generalization or conclusions methodologies and

others. Those that were included in this chapter helps familiarizing information that are relevant and

similar to the present study.

Review of Related Legal Basis

Republic Act 7394 known as the “consumer act of the Philippines.”

It is the policy of the state to protect the interest of the consumer, promote general welfare

and to establish standards of conduct for business and industry. The law was enacted primarily to

protect the consumers against false, deceptive and misleading advertisements.

Advertisements are mostly made to encourage consumers to buy particular products or

services. Through advertisements, consumer can determine easily the new product in the market.

One of the medium to know what products are new in the market is by watching commercials in

television. Television advertising really had a great impact on consumer’s preferences. One of the

problem that consumer can encounter in Television advertising is being deceived by the

advertisement or it is known as “Misleading Advertising”. One form of misleading advertising is to

claim that a product is an anti-aging when in fact it does not. Advertising may also be considered

misleading if important information that consumer needs to make an informed decision is left out.

All in all, the said law is to protect the health, safety and the right of the consumers against

misleading advertisements.
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Republic Act No. 7306.

An Act providing for the establishment of the people’s television network, incorporated, defining its power

and functions, providing for its sources of funding and for other purpose. We all know that Filipinos spend half of

their time watching the television and the state shall ensure that the television viewers will get the high quality

programs which is safe for any age.

Republic Act No. 8370

An Act that recognizes the vital role of the youth in nation-building and shall promote and protect their

physical, moral, spiritual, intellectual and social well-being by enhancing their over-all development, taking into

account sectoral needs and conditions in the development of educational, cultural, recreational policies and programs

addressed to them. Children are one of the consumer of television which can view different advertising and having

an own law supporting them helps a lot specially on appreciating different kinds of advertising business people

provide.

Review of Related Literature

According to American Marketing Association advertising has been defined as a "form of

non-personal presentation and promotion of ideas, goods or services by an identified sponsor." It is a

commercial transaction which is done in order to promote goods and services, and is directed

towards a vast audience and is not for individuals only. The ultimate goal of advertisements is not to

generate sales or profits; this can only be done once people are aware of the particular product. The

overall goal of advertisement is to create the brand awareness among the consumers which in affect

influences their buying behaviors. (http://www.blacksacademy.net/content/3961.html)

According to Terence A. Shrimp (1981) advertisement transfers affect to a brand. There are

a various number of arguments that how can the effectiveness of advertisement be measured .
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Advertisements are a source of attaining the attention of the consumer; this is done in order to

increase the publicity and hence allow the information to influence the brand awareness and as a

result influences the decision making of consumers. Further argued by Keller (1994) that

advertisements build brand awareness, which in return strengthens the attitudes of the consumer

towards the brand and their purchasing decisions. Dahlen (2001) concluded that the increase in

advertisement exposures results in an increased brand awareness and also the attitudes of non-

consumers. In this rapid globalization consumers are well aware of what they will see in an

advertisement, this information not only persuade the particular behavior of consumer but also

promotes the buying of the product (Robertson and Rossiter 1974; Wright 1986).

According to Parveen 2009, in Pakistan the television is widely spread and 80 to 90% of the

population watches television. The key pillar of a brand's consumer based brand equity is

considered to be brand awareness (Aaker, 1991). If brand awareness is not built, then there cannot

be any effective communication. Simply it can be exemplified that for a customer to purchase a

product or brand it is important that they are first made aware of it. It is argued that until brand

awareness has not been formed, brand attitudes cannot be formed and ultimately there will be no

intention to buy. Many researchers support the association between brand awareness and buyer

behavior (Assael and Day, 1968; Macdonald and Sharp, 2000).

According Rana (1995), it revealed that the impact of television advertisements was the

greatest amongst all the other forms of media, and also that in television advertisements the

purchase behavior were the greatest.

According to Kotler (2002) advertising is a set of activities that present and promote ideas,

goods, or services, is non-personal through an identified sponsor. Through advertisement a

relationship is built between the manufacturer/produce and the ultimate consumers. Advertisement
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does not directly impact the consumer's buying behaviors but helps in creating awareness among the

consumers. Advertisements are created in order to accomplish the purpose of marketers;

communicating the product to the consumers. Therefore an advertisement must be able to influence

the consumer's buying decision. There are several objectives of advertising campaigns. A good

advertising campaign must be able to communicate the information to the consumers in such a way

that the awareness about the product is increased hence increasing their buying behaviors towards a

particular product. The several objectives of a good advertising campaign are presented in the table

below.

According to Meyer-Waarden and C. Benavent (2009) in their article stated that in the retail

sector, consumers typically patronize multiple outlets for a variety of products, which raises the

important issue of how outlets can gain a greater share of consumer expenditures. One such way is

to increase repeat purchases through loyalty programs.

Review of Related Studies

According to the study of Rai (2013), the “impact of advertising on consumer’s preference”

for the International Journal of Management Research and Business Strategy (IJMRBS). Rai states

specifically that in this information era and media world, “Advertising plays a major role in

changing the consumers preference.” He further explains that this change in consumers preference

is towards the products that are shown in advertisements. Rai believes that when a consumer is

exposed to an advert, it alters the attitude with which they look at the product. In reference to the

purchasing decision of the consumer, Rai indicates that “Advertising has great influence in the

purchasing decision of customers for particular brands.”

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The research explains how people use advertising as a guide to decide what the

clothes, beverages, fragrances and durables are “right”.Rai’s research was based on two objec-tives.

First, Rai wanted to examine the influence of advertising on preference formation of consumers.

Secondly, he was interested in determining the influence of advertising on attitude formation of

consumers. In studying the preferences of consumers, Rai observes that if a consumer notices

messages for two different firm’s products, he or she judges the message content in terms of which

one he or she perceives to be better. The consumer believes the better advertisement’s product will

definitely have more features and so be of higher value. Rai explains that all the efforts to make an

advertisement successful are centered on the sole aim of making it so effective and persuasive in a

natural way so as to serve the purpose of meeting

theconsumerpsyche in a positive manner. According to Reader’s Digest surveys, a research was

conducted annually since 2000 and asking respondents which brands they trusted most for several

product categories. There are several national brands that have remained strong in the face of the

power of the large multinationals. “These are national brands that are either old or include

important national values in their advertising or both”

Rai in his findings concluded that advertisement worldwide influence the preference formation of

consumers not only in India but also worldwide. The consumers of durable products have their

motivational sources which are advertisements and study revealed that advertisement promotion

motivates them to materialize the purchase of durables. The consumers are induced significantly by

advertisements when the target is on quality and price. Purchase attitude and behavior is influenced

by variety of advertisements which cover product evaluation and brand recognition.

In the research study of Yelbert (2010) about the effects of advertisement of hair products on

students’ purchasing habit. She had the ultimate objective to determine whether the information

provided during advertising was adequate to fully inform students about the effects of the product.
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Yelbert was also interested in whether students buy product because of models in advertisements.

She considerably looked at the effects of advertising image on cultural perceptions of students.

Yelbert’s research revealed that some people had a negative

perception about advertising. They described advertising as a way of promoting inferior product

to increase sales. Also, advertisers did not give full information about product her research findings

indicated that many students are influenced to adopt hairstyles in advertisements. They buy a

particular product due to the quality of the product portrayed in the advertisement. Yelbert

concludes that advertising has a positive and negative effect on consumers. She quotes Shimp, T.A

(2000) “whether consumers ultimately purchase a product depends on whether the promotion and

communication variables facilitate purchasing” (Shimp, 2000; Yelbert, 2010). Yelbert found out

that even though some students were influenced by advertising, others did not form their purchasing

habits based on advertising. They rather had the impression that advertising was a way to deceive

them and make them buy products they do not actually need

Niazi (2012) conducted a research on effective advertising and its influence on consumer

buying behaviour (information management and business review). This research established that

advertising is an effective tool to attract people and to divert their

attitude positively toward a product. The research revealed that there is a moderate relationship

between consumer purchase attention, environmental factors and emotional factors. If the consumer

is emotionally attached with the product, he or she will prefer to patronize

that product. Sometimes people change their brands just to test the other brands. Purchasing powers

of people also change with a change in factors such as income level and

men mostly preferthe advertisementthan women.

Advertisement convinces people to use the product at least once in their lives. Celebrities used in ad
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vertising alsocontribute a greater positive influence on people. Mostly, people rely on

advertisements rather than other sources like family, friends and reference group opinions regarding

products. Consequently, advertising has a vital role in modern age because it is a mechanism to

build the behaviour of society regarding products. People get access to information and make

decisions regarding product purchase.

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CHAPTER III

RESEARCH METHODOLOGY

This chapter presents the methodology of the study. The research design, the sources of data,

instrumentation and data collection, and the statistical treatment of data are briefly described.

Research Design

The study used the Quasi-Experimental Research Design. This research design is used

because an independent variable (television advertisements) is identified but not manipulated by the

researchers, and impacts of television advertisements on the dependent variable (consumers’

preferences) are measured.

Reseatch Environment

The study was conducted in PHINMA University of Pangasinan

Respondents

The study have respondents directly from the Grade 12 ABM Senior High School students

of PHINMA-University of Pangasinan. The respondents were selected because the study is focused

on their preferences as consumer that is affected by television advertisements.

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Research Instrument

The research instruments that are used in the study were checklist and rating scale these are

the applicable types of instruments to used to know the impacts of television advertisements on

Grade 12 ABM Senior High School Students in PHINMA- University of Pangasinan preferences

as consumers of goods and services.

Rating scale was used in gathering data specifically the Five point Likert Scale. It was used

to know the impacts of television advertisements on Senior High School students’ preferences as

consumers in PHINMA- University of Pangasinan. The researchers’ interpretation of the five-

point scale are shown in Table 1.

Scale Range Interpretation

5 4.50-5.49 Strongly Agree

4 3.50-4.49 Agree

3 2.50-3.49 Moderately Agree

2 1.50-2.49 Disagree

1 0.5-1.49 Strongly Disagree

Table 1: Five point Likert Scale

The researchers also used checklist in gathering data. The researchers chose this instrument

to not spend a lot of time waiting for the answers of the respondents. The respondents will just

simply put a check of their most wanted options. It is used to easily choose answers about the

impacts of television advertisements.

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Data Collection Methods

All of the participants were selected through stratified sampling. This sampling method is

conducted where Grade 12 ABM students were selected to become a respondent of this study.

Herein, there were 200 chosen respondents for the survey questionnaire. After collecting the

questionnaires, the responses were tallied, computed, analysed and recorded.

In the conduct of the research, the survey forms were drafted in a very clear and concise

manner to prevent conflicts among respondents. People who participated in the research were

given ample time to respond to the questions posed on them to avoid errors and inaccuracies in

their answers. The respondents were given a letter regarding the confidentiality of their identity

and informations.

Statistical Analysis

Weighted arithmetic mean was used to measure the general response of the survey sample, whether

they agree to a given statement or not.

The formula in computing weighted arithmetic mean is as follows:

𝑥
𝑓= × 100%
𝑥𝑡

Where:

𝑓 – Weighted mean

𝑥 – Number of responses
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𝑥𝑡 – Total number of responses

The survey result was analysed with the use of statistical approach and Microsoft Excel

spreadsheets. The gathered datas will be represented by tables and charts.

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CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION

OF DATA

This chapter presents the results of the analysis and the interpretation of the data gathered

from the responses to the questionnaires relative to the focus of this study.

Datas Gathered from the Respondents

The researcher used the Five-point likert scale. The interpretation of the five- point scale are

shown in below.

Scale Range Interpretation

5 4.50-5.49 Strongly Agree

4 3.50-4.49 Agree

3 2.50-3.49 Moderately Agree

2 1.50-2.49 Disagree

1 0.5-1.49 Strongly Disagree

Table 1: Five point Likert Scale

The table presents the number of respondents who answered the rating scale.
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Number of respondents Percentage

(5) Strongly Agree 109 54.5%

(4) Agree 49 24.5%

(3) Not sure 6 3%

(2) Disagree 24 12%

(1) Strongly Disagree 12 6%

Table 2: Shows how television advertisements affect the preferences of consumers in buying

products.

Based on the table above, it shows that most respondents have answered strongly agree that

television advertisements affect their preferences in buying products. 24.5% have answered that

they agree. While 3% of the respondents have answered that they are not sure if television

advertisements affects their preferences. Some answered disagree with 12% and 6% of the

respondents have answered that they strongly disagree.

Number of respondents Percentage

(5) Strongly Agree 93 46.5%

(4) Agree 67 33.5%

(3) Not sure 4 2%

(2) Disagree 22 11%

(1) Strongly Disagree 24 12%

Table 3: Shows that companies with television advertisements convince consumers to buy

products
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As shown on the table, 46.5% of the respondents have answered strongly agree that

companies with television advertisements convince them to buy their products. 33.5% have

answered that they agree. While 2% of the respondents are not sure if companies with television

advertisements convince them to buy products. Others answered disagreewith 11% and 12 percent

of the respondents have answered that they strongly disagree.

Number of respondents Percentage

(5) Strongly Agree 116 58%

(4) Agree 59 29.5%

(3) Not sure 0 0%

(2) Disagree 16 8%

(1) Strongly Disagree 9 4.5%

Table 4: Shows the number of consumers that usually buy products that they see on

television advertisements

Based on the table shown, most of the respondents have answered strongly agree that they

usually buy products that they can see in television advertisements. 29.5% have just agreed. No one

has answered not sure if they usually buy products that they see on television advertisements. 8%

have answered disagree and 4.5% of the respondents have answered strongly disagree.

Number of respondents Percentage

(5) Strongly Agree 87 43.5%

(4) Agree 94 47%

(3) Not sure 3 1.5%

(2) Disagree 9 4.5%

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(1) Strongly Disagree 7 3.5%

Table 5: Shows that television advertisements helps consumers on choosing the products

they should buy.

The respondents are asked if television advertisements helps them to choose what products

to buy. 43.5% of the respondents have answered strongly agree. While 47% have agreed that

television advertisements helps them to choose what products to buy. 1.5% have answered not sure.

4.5% have disagreed. 3.5 % have answered that they strongly disagree.

Number of respondents Percentage

(5) Strongly Agree 57 28.5%

(4) Agree 91 45.5%

(3) Not sure 11 5.5%

(2) Disagree 18 9%

(1) Strongly Disagree 23 11.5%

Table 6: Shows that consumers will buy a product if their favorite celebrity is endorsing it.

As shown on the table above, 28.5% strongly agreed that they would buy a product if their

favorite celebrity is endorsing it. 45.5% have answered agree. 5.5% are not sure. 9% of the

respondents asnwered disagree. While 11.5% answered strongly disagree.

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Waste of time
9%
Irritating
10%

Create
Awareness, Informative
23% 58%

Graph 1: Percentage about how respondents find television advertisements

Based on the graph above, 58 percent of the respondents find that television advertisement is

informative, while 23 percent of the respondents find television advertisements create awareness, 10

percent of respondents find television advertisement irritating and 9 percent of respondents find

television advertisement just a waste of time.

Not sure, 12%

No Influence, 9%

Medium
Influence, Large Influence,
25% 54%

Graph 2: Percentage of response according to the influence of television advertisements over

the respondents buying behaviour
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The students are asked how much influence does television advertisements over their buying

behaviour. 54 percent of respondents answered television advertisements has a large influence in

their buying behaviour. 25 percent of respondents feel that television advertisements have a medium

influence over their buying behaviour. 9 percent of respondents answered television advertisements

has no influence over their buying behaviour. 12 percent of respondents are not sure if television

advertisements have an influence over their buying behaviour.

Others
10%

Desire to
purchase Interest
23% 45%

Positive
Impression
22%

Graph 3: Results of how television advertisements affect consumers to a certain product

As shown on the graph, 45 percent of the respondents answered that television

advertisement affects them to a certain product because of interest. 22 percent of the respondents

answered that because of the positive impression of the product that is being advertised in

television. 23 percent of the respondents answered that because of the desire to purchase a certain

product that is being advertised in television and 10 percent of the respondents answered that

television advertisement affects them in other way around.

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Yes, 40%

No, 60%

Graph 4: Percentage of response according to buying a product and feel regret afterwards.

As shown on the graph above, 60 percent of the respondents didn’t regret after buying a

certain product that is being advertised in television. 40 percent of the respondents regrets after

buying a certain product that is under the influence of television advertisement.

No, 47%
Yes, 53%

Graph 5: Percentage of response according to the effectiveness of featuring a celebrity in an

advertisement to convince consumers to buy products.

As shown on the chart, 53 percent of the respondents answered that featuring a celebrity in

an advertisement to convince consumers to buy products is really effective. 47 percent of the

respondents answered that featuring a celebrity in an advertisement is not effective to convince the

consumers to buy products.

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CHAPTER V

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

The purpose of this chapter is to present the summary of the findings derived from the

analysis of the datas. Conclusions and recommendations for further research and studies are also

included in this chapter.

Summary

The study aims to determine the impacts of television advertisement on Grade 12 ABM

Senior High School students’ preferences as consumers in PHINMA University of Pangasinan.

The research questions for this study were: (1) In what way can television advertisements affect

consumers? (2) What are the preferences of consumers among the respondents? (3) What is the

importance of television advertisements? (4) Is there a significant relationship between the

preferences of consumers and importance of television advertisments?

The researchers used quasi-experimental research design and survey questionnaires to gather

data. They gathered 200 Grade 12 ABM Senior high school students using stratified sampling as

the respondents of the study. Checklist and rating scale was used specifically the five-point likert

scale as instruments to easily rate and choose on the corresponding given choices on how

television advertisements affects their preferences as consumers.

Based on the results of the survey that is shown on the tables, respondents mostly answered

strongly agree that television advertisements affects their preferences in buying products. It also

convince them to buy products of a company that uses television advertisements as a tool to promote

their products. They usually buy products that they see on television advertisements. They agreed
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that television advertisements help them to choose what products to buy. They would most probably

purchase a product if their favorite celebrity is endorsing it.

Conclusions

Advertising on television allows you to show and tell a wide audience your business,

product, or service. It allows you to actually demonstrate the benefits of ownership. You can show

how your product or service works and how it’s packaged so prospective customers will know what

to look for at the point of sale. In advertising, it often takes multiple touch points to effectively

influence consumers’ purchasing behavior.

The researchers aim to explore the role of television advertisement in consumer preferences

of the students of Grade 12 ABM senior highschool in PHINMA University of Pangasinan. The

researchers conducted a survey using rating scale and checklist, our findings provided astonishing

insights. The results ended up with the findings that television advertisement has become important

factors which influence the customer buying preferences because they are curious to buy what they

had seen on the advertisement and also they are gaining interest if their favorite celebrity will

endorse it.

Recommendations

1. The researchers recommend that compaanies that use television advertisements as a promotional

tool should be able to give the the true benefits and standards of the products that they are

promoting. They also recommend that they should invite famous celebrities to promote their

products to catch the attention of the consumers or viewers and have an interest to buy their

products.
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2. The researchers recommend to the viewers that they should not be easily get carried away with

what they see on television advertisements. They should get more informations about the product

before purchasing.

3. In improving this study, the researchers recommends to other people who would conduct a study

like this should make sure that all of the cited data and informations are based on a real life situation

or more likely accurate. Be more specific as well and be clear in explaining thoughts so the readers

will understand the study.