RESEARCH PROJECT REPORT ON TO STUDY THE IMPACT OF ADVERTISEMENTS ON TELEVISION ON BUYING BEHAVIOUR OF CUSTOMERS Submitted to the Punjab College

of Technical Education, Ludhiana Affiliated To Punjab Technical University, Jalandhar As the part of curriculum, Work Shop on Research Methodology For the degree of Master of Business Administration Session (2006-08) BY Vivek Khattar MBA 1(B) University Roll No.6227222038

DEPARTMENT OF BUSINESS ADMINISTRATION PUNJAB COLLEGE OF TECHNICAL EDUCATION, LUDHIANA

ACKNOWLEDGMENT
The success of any project depends upon the hard work and endeavor of not one but many, and this project is no expectation. Acknowledgement any one in mere words is a very difficult job. I would like to pay my sincere thanks to all those person who helped me during this project work with their able guidance and invaluable advice. First and foremost, I convey my gratitude to Mr. Gautam Bansal (Faculty PCTE) for providing me the opportunity to do a research project on the topic To study the impact of advertisement on television on buying behavior of customers. I am highly grateful to Dr. K.N.S Kang (Director of PCTE) to provide us lots of knowledge in respect of Research Methodology and he is always ready for our help. And provides us a lot of opportunities.

VIVEK KHATTAR (Punjab College of Technical Education, Ludhiana)

DECLARATION
I here by declare that the project entitled To study the impact of advertisement on television on buying behavior of customers is an original work done by me as part of my curriculum under the guidance of Mr. Gautam Bansal (Faculty) PCTE, Ludhiana. The views and suggestions expressed are my own and have no link with any persons opinion and the matter enclosed has not been submitted for the ward of any other degree or diploma in the university.

VIVEK KHATTAR (Punjab College of Technical Education, Ludhiana)

CHAPTER 1
INTRODUCTION

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods. Or services by an identified sponsor. Ads can be a cost effective way to disseminate messages, whether to build a brand preference or to educate people. The organizations handle advertising in different ways. In small companies, someone handles advertising in the sales or marketing department, who works with an advertising agency. A large company will often set up its own department, whose manager reports to the vice president of marketing. The departments job is to propose a budget, develop strategy, approve ads and campaigns, and handle directmail advertising, dealer displays, and other forms of advertising. Different types of advertisement is used for capturing the minds of different types of consumers as there is a vast range of consumers in the country an organization has to go for different types of medias of advertising.

History

Black-figured lekythos with the inscription: buy me and you'll get a good bargain, ca. 550 BC, Louvre Commercial messages and political campaign displays have been found in the ruins of ancient Arabia. Egyptians used papyrus to create sales messages and wall posters, while lost-and-found advertising on papyrus was common in Greece and Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient media advertising form, which is present to this day in many parts of Asia, Africa, and South America. For instance, the tradition of wall painting can be traced back to Indian rock-art paintings that go back to 4000 BC.[5] As printing developed in the 15th and 16th century, advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England. These early print ads were used mainly to promote books and newspapers, which became increasingly affordable thanks to the printing press, and medicines, which were increasingly sought

after as disease ravaged Europe. However, false advertising and so-called "quack" ads became a problem, which ushered in regulation of advertising content. Although advertising has existed for a long time, explicit "branding" is a product of the late 1800s. Due to the prevalence of dangerous products and unregulated industries of the Industrial Revolution, brands were introduced to increase the reputation and value of a particular manufacturer. An identified brand often meant safety and quality. Quaker Oats is among the oldest modern brands in continual use. As the economy was expanding during the 19th century, advertising grew alongside. In the United States, classified ads became even more popular, filling pages of newspapers with small print messages promoting all kinds of goods. The success of this advertising format led to the growth of mail-order advertising such as the Sears Catalog, at one time referred to as the "Farmer's Bible". In 1843, the first advertising agency was established by Volney Palmer in Philadelphia. At first, agencies were brokers for ad space in newspapers. N.W. Ayer & Son was the first full-service agency to assume responsibility for advertising content. It was also the first agency to charge a commission on ads.

At the turn of the century there were few career choices for women in business; however, advertising was one. Since women were responsible for most of the purchasing in their household, advertisers and agencies recognized the value of women's insights during the creative process. In fact, the first American advertising to use a sexual sell was created by a woman for a soap. Although tame by today's standards, it featured a couple and said "The skin you love to touch". When radio stations began broadcasting in the early 1920s, the programs were aired without advertising. The first radio stations were established by radio equipment manufacturers and retailers offering programming to sell radios. However many nonprofit operators followed suit, such as schools, clubs, and civic groups.

A print advertisement for the 1913 issue of the Encyclopdia Britannica. The 1960s saw advertising transform into a modern, more scientific approach in which creativity was allowed to shine, producing unexpected messages that made advertisements more tempting to consumers' eyes. The Volkswagen ad campaign

featuring such headlines as "Think Small" and "Lemon"(these were used to descirpe the appearance of the car)ushered in the era of modern advertising by promoting a "position" or "unique selling proposition" designed to associate each brand with a specific idea in the reader or viewer's mind. This period of American advertising is called the Creative Revolution and its poster boy was Bill Bernbach who helped create the revolutionary Volkswagen ads among others. Some of the most creative and long-standing American advertising dates to this incredibly creative period. The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a byproduct or afterthought. As cable (and later satellite) television became increasingly prevalent, "specialty" channels began to emerge, and eventually entire channels, such as QVC, Home Shopping Network and ShopTV, devoted to advertising merchandise, where again the consumer tuned in for the ads. Marketing through the Internet opened new frontiers for advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, the search engine Google revolutionized online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising. A recent advertising innovation is "guerrilla promotions", which involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. This reflects an increasing trend of interactive and "embedded" ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social networking sites (e.g. MySpace).

Negative effects of advertising

An extensively documented effect is the control and vetoing of free information by the advertisers. Any negative information on a company or its products or operations often results in pressures from the company to withdraw such information lines, threatening to cut their ads. This behavior makes the editors of the media self-censor content that might upset their ad payers. The bigger both companies are, the bigger their relation gets, maximizing control over a single information. Advertisers may try to minimize information about or from consumer groups, or consumer controlled purchasing initiatives (as joint purchase systems), or consumer controlled quality information systems.

Another indirect effect of advertising is to modify the nature of the communication media where it is shown. Media that get most of their revenues from publicity try to make their medium a good place for communicating ads before anything else. The most clear example is television, where this means trying to make the public stay for a long time and in a mental state that encourages spectators not to switch the channel through the ads. Programs that are low in mental stimulus and require light concentration and are varied are best for long sitting times. These make for much easier emotional jumps to ads, which can become more entertaining than regular shows. A simple way to understand the objectives in television programming is to compare contents from channels paid and chosen by the viewer with channels that get their income mainly from advertisements

Types of advertisement

Informative advertisement: it aims to create brand awareness and knowledge of the new products or new features of existing products. Persuasive advertisement: aims to create liking, preference, conviction and purchase of a product or service. Reminder advertisement: aims to stimulate repeat purchase of products and service.

Reinforcement advertising: aims to convince current purchasers that they made the right choice. Automobile ads often depict satisfied customers enjoying special features of their new car.

Roles of Advertising Advertising can also be explained in terms of the four roles it plays in the business and the society: 1. Marketing 9

2. Communication 3. Economic 4. Societal

The Marketing Role: It is the process a business uses to satisfy consumer needs and wants through goods and services. The particular consumer at whom the company directs its marketing include the product, its price and the means used to deliver the product or place. Marketing also includes a method for communicating this information to the consumer called marketing communication or promotion.

The Communication role: Advertising is for of mass communication. It transmits the different types of market information to match buyers and sellers in market place. An advertisement both informs and transforms the product by creating an image that goes beyond straightforward facts.

The Economic Role: There are two points of view about how advertisement affects an economy. In the first, advertisement is so persuasive that it decreases the likelihood that a consumer will switch to an alternative product, regardless of the price charged. By featuring other positive attributes, and avoiding price, the consumer makes a decision on these various non-price benefits. The second approach views advertising as a vehicle for helping consumers assess value through price as well as other elements such as quality, location, and reputation. The Societal Role: 10

Advertising also has a number of social roles. It informs us about new and improved products and helps us compare the products and features and make informed consumer decisions. It mirrors fashion and design trends and adds to our aesthetic sense. Advertising tends to flourish in societies that enjoy some level of economic abundance, in which supply exceeds demand.

Functions of Advertising: Provides product and brand information: Although many ads are devoid of information, providing the consumer with relevant information that will aid decision-making is still the main function of advertising. The information given depends upon the needs of target audience. In the case of purchasing a new suit, needed information might be the price and outlet location. Provides incentive to take action: In most instances, consumers are reluctant to change their buying behavior. Even if they are somewhat dissatisfied with their current product, a habit has been established and learning about a new product is difficult. Advertising sometimes gives the consumers the reasons to switch brands, if thats the goal.

Provides reminders and reinforcement: Much advertising is directed at keeping current customers. Consumers forget why they bought a particular brand of microwave or automobile. Advertising must constantly

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remind the consumer about the name of the brand, its benefits, its value, and so forth. These same messages help reinforce the consumers decision.

TELEVISION ADVERTISEMENT

Television is a telecommunication system for broadcasting and receiving moving pictures and sound over a distance and also refer to all the aspects of television from the television set (or Internet) to the programming and transmission. The word is derived from mixed Latin and Greek roots, meaning "far sight": Greek "tele", far, and Latin visio-n, sight (from video, vis- to see). A television sytem may be made up of components, so a screen which lacks an internal tuner is called a monitor rather than a television. A television may be built to receive different broadcast or video formats such as HDTV Television was not invented by a single person, but by several individuals. The origins of what would become today's television system can be traced back to the discovery of the

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photoconductivity of the element selenium by Willoughby Smith in 1873, followed by the work on the telectroscope and the invention of the scanning disk by Paul Nipkow in 1884. All practical television systems use the fundamental idea of scanning an image to produce a time series signal representation. That representation is then transmitted to a device to reverse the scanning process. The final device, the television (or TV set), relies on the human eye to integrate the result into a coherent image. Starting March 1, 2007, new television sets that receive signals [over-the-air] must include digital or HDTV tuners for digital broadcasts, including pocket sized portable televisions. Only expensive televisions are currently made with both kinds of tuners. By 2009, all U.S. television broadcasts will be exclusively digital, by order of the Federal Communications Commission, which then auction off that portion of the spectrum for for additional channels or other communications traffic. The ruling, which so far has met little opposition from consumers or manufacturers, would render all non-digital televisions dark and obsolete within 2 years. The FCC has determined that an external tuning device can simply be added although they are currently not widely available, expensive, and require bulky AC power supplies. Currently, even the earliest televisions continue to work with present broadcast standards. This mandate was designed to help provide a painless transition to the new standards.

Advantages

Television permits you to reach large numbers of people on a national or regional level in a short period of time Independent stations and cable offer new opportunities to pinpoint local audiences Television being an image-building and visual medium, it offers the ability to convey your message with sight, sound and motion

Disadvantages

Message is temporary, and may require multiple exposure for the ad to rise above the clutter Ads on network affiliates are concentrated in local news broadcasts and station breaks Preferred ad times are often sold out far in advance

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Limited length of exposure, as most ads are only thirty seconds long or less, which limits the amount of information you can communicate

CHAPTER-2

INTRODUCTION OF RESEARCH PROJECT

Need of the research

To know whether it is necessary to advertise a product on television. To know that does and advertisement on television really influences the customers to buy a product.

Objectives of the Research

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1 To study the affect of advertisements shown on the television on buying decisions of the customers 2 To study the relevance of advertisements on television 3 To study the response of customers towards advertisements shown on the television. 4 To study whether the advertisements shown on the television provides any information about the product to the customers.

Research Methodology
Research methodology is a way to systematically solve the research problem. It is a science of studying how research is done scientifically and identifiably. Research Design: Research design is an arrangement of the conditions analysis of the data in such a manner that aims to combine relevance to the research purpose with the economy in procedure. The research problem having been formulated in clear-cut terms help the researcher to prepare a research design. Here the research design is exploratory. Here the research is being conducted to know the ultimate impact of the advertisements on the customers in this research various medias of advertisement will be evaluated and the questionnaires will be filled up which will help us in getting the suitable results. Data Source: The data will be collected by both i.e. Primary and Secondary source.

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Primary source: In this study of questionnaire method has been used for getting the Primary data. Secondary data: Sources of secondary information will include various Journals, books, magazines and Internet. This also includes going through various related research projects prepared by other students.

Sampling plan: Population All the viewers in Ludhiana and Shimla. Sampling unit Individuals whose age is above 18 years and who view Television. Sampling Size Sample size refers to a number of items to be selected from the population to constitute a sample. Due to constraints like time and money the sample size selected for the research is 50 viewers of Ludhiana and Shimla city Sampling Technique: Sampling technique is a method or technique for obtaining the sample from the given population. Convenient sampling technique is selected under which every item in the universe has an equal chance of inclusion but according to the convenience of the study a relevant number of viewers is to be taken.

Analysis Methods: The data was tabulated and the frequency distribution was developed. The percentages and mean score were computed from different variables to analyze the questionnaire and selected advertisements were analyzed to know the impact of advertisement on consumers. 16

Limitations: Although sincere efforts have been done to collect authentic and reliable information from the respondents, even then the report is subject to certain limitations, which are as follows: 1. Time was the major Limitation, which may have affected the inferences drawn in the study 2. Some of the respondents were reluctant to share the information with the researcher 3. All the results and conclusions have been drawn on the basis of information provided by the respondents, so it may lack authenticity 4. Some of the respondents being visited were preoccupied with their routine work, so sometimes it was very difficult to obtain information from them.

DATA ANALYSIS

Do you watch Television? Table 1 showing the number of people watching television
Number of Respondents Percentage Yes 45 90% No 5 10%

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Number of People watching television

Yes No

Thus is clear from the responses that 90% of the people watch television as out of the total of 50 respondents 5 replied yes and only five responded that they dont watch advertisements this may be due some reasons like they have a busy schedule or they are not having access to television

No. Of people who like to watch Advertisement on television.

Table 2 showing percentage of people who like watching advertisements on television Yes 84% No 16%

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Percenatge of people who like watching Advertisements

16%

84%

Yes

No

The above graph shows that 84%of the people like watching the advertisements shown on the television and only 16% of the respondents said that they do not like the advertisements shown on the television. Out of the total 50 respondents 42 said that they like watching advertisements on television and only 8 said that they dont like watching advertisement on television.

What appeals most to a viewer in an advertisement?

Table 3 showing the degree of appealing things I an advertisements

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Music

Cathy slogans

Comedy Concepts Information Cartoons used 33 13 about product 13 the 6

23

18

35 30 25 20 15 10 5 0 23 18

33

13

13 6

Series1

Comedy

Information about the product

Concepts used

Catchy slogans

Thus from the above shown data it can be said that the comedy and the humor created in the advertisements appeals the most to the viewers of the advertisements as 33 out of 106 responses states that comedy in advertisements appeals them the most and after that 23 out of 106 responses states that the music in the advertisements appeals the people thereafter comes the other factors like catchy slogans happiness and cartoons shown in the advertisements.

Table 4 showing: Does an advertisement on television provide any information about the product

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Cartoons

Music

24%

Yes No 76%

A new question that arises in the mind is that does the advertisements shown on the television provides any information abut the product in context to this question out of 50 respondents 38 said that yes they gather knowledge about the product from the advertisements shown on television and the rest 12 said that advertisement on television does not provide any knowledge about the product this shows that advertisements provide information to 76% of the viewers.

Attention toward advertisements:

The next question arises in the mind of every researcher that does the viewers really pay attention towards the advertisements shown on the television of various products many people say that if an advertisement comes in between a serial they prefer to shift toward any other channel or like to watch something else. Thus I asked a question to the respondents that do they really pay attention towards the ads shown on the television and thereafter I found the following result:

Table 5 showing attention of people towards advertisements

Always 16% Mostly 42% Sometimes 32% 21 Rarely 10% Never 0%

Attention towards advertisements

10%

0%

16%

Always Mostly Sometimes

32% 42%

Rarely Never

Is it appropriate to show advertisements in television?

Here comes the most important question, this question helps us in knowing the perception of the customers towards advertisements all the viewers were asked that do they consider that showing of advertisement on television is a appropriate thing. The following results were obtained for the above-asked questions.

Table 6 showing the viewers response toward whether it is appropriate to show advertisement on television
Items Yes No

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No of Respondents Percentage

43 86%

7 4%

Viewers reponse

14% Appropriate Not-Appropriate

86%

Thus from the above data the fat can be made clear that 86% of the viewers said that it is appropriate to show advertisements on the television and only 14% of the viewers said that it is inappropriate to show advertisements on television as they feel that advertisement is not of any use but in contrast the majority of viewers had a positive response and they say that advertisements should be shown on the television and it gives a good information about the product and helps in providing the information.

Final impact of advertisement

To know the final impact of advertisement on the viewers they were asked that whether they have bought any product after watching the advertisements and the following results were obtained from the respondents

Table 7 showing whether customers purchase any product after seeing the advertisement on television
Items Yes 23 No

Number of respondents Percentage

44 88%

6 12%

The impact of advertisement

12%

Yes No 88%

Thus from the question asked that whether the customers have purchased any product after watching the advertisement gives a clear cut outcome for the research done by me out of the total 50 respondents 44 replied that yes they have purchased a product after watching the advertisements and only 6 i.e. 12% of the respondents replied that they do not buy any product after watching the advertisement they might be influenced by some other things like emotional attitude or because of their habits.

Which media of advertisement influences you the most?

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4 6 Television Newspaper Magazines 12 28 Internet

Thus from the above shown graph it is clear that television advertisements influence the most on the buying behavior of the consumers as compared to other channels of advertisements like newspaper magazines and internet.

Conclusion

After doing all the data analysis and the interpretation the result which can be drawn out is that advertisements shown on television affect the buying decision of the buyer moreover the showing of advertisement influences the decision of the buyers of some segment. They are attracted towards the products and most of the have bought a product after watching the advertisement on television. Some viewers are of the view that it is a part of entertainment while some others think there is no mean of showing advertisements on the television but according to the research conducted by me and going through the data analysis and interpretation it can be said that advertisement has some

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weightage and it contributes towards the promotion of the product and also provides knowledge about the product and at last most of the viewers are of the viewpoint that advertisements should be shown on the television as it affects the buyer decision of the product.

Questionnaire

Q1. Do you watch television? Yes No

Q2. How often do you watch television? Less than 2 hours 2 - 5 hours More than 5 hours

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Q3.Do you Like watching Advertisements on television? Yes No

Q4. You like watching advertisements because of--Music Comedy/ Humor Information about the product Catchy slogans/ Contents Concepts Used Cartoons / Celebrities

Q5.Does advertisement on television provides you any information regarding the products? Yes . Q6. Do you really pay attention towards ads? Always Sometimes Never Mostly Rarely No

Q7.Name any three advertisements which influences you to buy a product? 1 2 3 Q8. Do you consider showing of Ads on TV to be appropriate? A. Yes B. No

Q9.Have you purchased any product after watching the advertisement on television?

Q10.Which media of advertisement influences the most?

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Television Magazines

Newspaper Internet

Personal Information Name: Age: Telephone No. Educational qualification Undergraduate Postgraduate Occupation Businessmen / women House wife Professional Service Student Any other Graduate Ant other

Bibliography
Kothari, C.R, research methodology, 2004, New Age International Ltd., New Delhi, Edition 2, Pg. 46 49 Shajahan, Research Methods for Management, 2006, Tata McGraw Hill, 3rd Edition, Pg. 24- 50 Kotler, Philip and Keller, Kevin Lane, Marketing management, 2006, Pearson Education, 12th edition, Pg.470-478. www.google.com Moriarty, Burnett and Wells, Advertising Principals and Practices, 2004, Pearson Education 6th edition, Pg.4-37.

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 www.ask.com www.advertisingfactfiles.com Past research reports

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