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Impact of advertising on consumer buying behavior


By
S #.

Name

Reg #.

Muhammad Hasnain Abbas (Leader)

23618

Haris Memon

19965

Kamran Khan

20911

Zahida Lakhan

22868

Kabir Thakur

24017

Mushtaque Shayan

24026

A Project Report
submitted in partial fulfillment of the requirements
for the Course of Writing Research Reports to
Miss Sania Usmani
at the Iqra University, Main Campus

Karachi, Pakistan.
Dec 26, 2014

ACKNOWLEDGMENT
This report is dedicated to our family, companions, and educators for their backing and support.
Initially, we might want to thank Miss Sania Usmani for being a fabulous research supervisory. It
implies a ton to us that she ventures up when we required her most and tackled the obligation of
managing us in the privilege bearing. Moreover, she pushed us to consider unheard of options
and tested us to look past what is directly before us. Without her we would not have possessed
the capacity to finish this exploration. Thus and a lot of people more, we will be perpetually
appreciative.

ABSTRACT
Advertising has made a great deal of chances for advertisers to associate
with their customers and additionally advance their items successfully
however not all their customers consider it to be of much vitality. People of
Pakistan dont get influenced by advertisement even if the product is advertised on TV by their
favorite celebrity or actor. Advertisements are the source of information for them about a new
product but pursuing a new product is may be influenced by other sources but not
advertisements. The findings of this research demonstrate that there exists a feeble or no
relationship between advertisements with the consumer behavior. The research also shows that
customers of social group of students do not spend time to read promotional messages or Emails.
People dont have time to entertain direct marketers and gets irritated when listen to their calls.
The data was collected via questionnaire consists of closed ended questions. Data was collected
from the no.1 private sector business University of Sindh i.e. Iqra University. The sample was
consisted of 90 respondents. The result of data analysis is supported by SPSS software. The Ttest was used to test the hypotheses.
Key Words: Online advertisement, TV advertisement, Direct marketing, Consumer buying
behavior.

CHAPTER1: INTRODUCTION
1.1 Overview
The goal of conducting this research is to determine the relationship between different forms of
advertisement to the consumer buying behavior.
Advertisement is defined as: Advertising is a type of marketing communication used
to promote a product, service, or event or publicizing a job vacancy (Oxford English
Dictionary, 2005)
Consumer is a person who purchases goods and services for personal use. The purpose of
marketing is to get together and fulfill target customers requirements. Television advertising is
very effective tool to communicate word to their target spectators as it combines audio and visual
communication. Which make people interested in their product. Television advertisement is one
of the most reliable way of advertisement. TV advertisement can be used to seek out any type of
customers or consumers. (Geeta Sonkusare, 2013)
The coverage and variation of online advertisement has grown dramatically. Organizations are
using more on online ad than prior. Understanding online advertisement is very necessary
because it has different effects on consumers than TV or radio advertisements. Online advertising
is an emerging form of advertisement which will become the future. (Bakshi & Gupta, 2013)
Examples of direct marketing are Email, SMS and One-to-One marketing. In which business
sells products and services directly to the public. Direct marketing uproots the center man from
the advertising process, as an organization's message is given specifically to a potential client.
This sort of advertising is regularly utilized by organizations with small promoting plans, since
they can't bear to pay for promotions on TV and frequently don't have the brand distinguishment
of bigger org.
Advertising tells the customers about brands and products available in the market. Advertising is
for everybody including kids, young and old. Advertising educates people. Advertisement on
social issues like smoking, child labor or family planning etc. brings awareness in peoples mind.
Advertising plays a vital role in society. This research will study the relationship between
advertisement and its effect on consumer buying behavior.
Dependent Variable:

Consumer buying behavior

The methodology by which people look for, select, buy, utilize, and discard products and
services, in fulfillment of their needs.
Independent Variable:

TV Advertisement

Television advertising is very effective tool to communicate word to their target spectators as it
combines audio and visual communication. Which make people interested in their product.
Television advertisement is one of the most reliable ways of advertisement. TV advertisement
can be used to seek out any type of customers or consumers. (Geeta Sonkusare, 2013)

Online Advertisement

Online advertising or also known as web advertising or Internet marketing, is a type of


advertising and promoting which utilizes the internet to convey promotion messages to buyers.

Direct marketing (Emails and one to one marketing)

Offering products or services to the general public directly or specifically. E.g. via mail request
or phone offering, unlike retailers.
Sub-variables:
TV Advertisement

Covert Advertising
Commercial breaks
Online Advertisement

Website marketing
Pop up ads
Direct Marketing

Email
SMS
One to One marketing

1.2 Problem Statement


To find out the influence or impact of advertisement like TV advertisement, online advertisement
and direct marketing, its outcomes or effect on the buying behavior of consumers.

1.3 Hypothesis
H1: There is positive impact of TV advertisement on consumer buying behavior.
H2: There is positive impact of online advertisement on consumer buying behavior.
H3: There is positive impact of direct marketing on consumer buying behavior.

1.4 Outline of the study


This research is led to figure out whether consumer behavior is influenced by advertisement. To
start with we have made a literature review to bring about a noticeable idea of our research. Also
we have demonstrated the hypothesis on which we are studying. At that point we have told our
research techniques that how we are getting along research and who are our respondents, so it
will make the reader to sum up the issue effortlessly.

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CHAPTER 2: LITERATURE REVIEW


ZU Abideen (2011) studied that advertising is an indication of correspondence anticipated that
will convince a gathering of individuals (viewers, perusers or group of onlookers parts) to
purchase or make some move upon things, information, or organizations etc. This paper
scrutinizes the relationship between autonomous variables which are ecological reaction and
enthusiastic reaction with attitudinal and behavioral part of buyer purchasing conduct, by tapping
the responses of 200 respondents using telecom organizations from Rawalpindi, Islamabad, and
Lahore (urban territories of Pakistan). The genuine disclosures of the study demonstrate a
general conventional relationship between the variables yet all around examination found that
eager response of purchaser purchase behavior is the variable that results into strong association
with the customer acquiring behavior. The truth of the matter is that people purchase those
brands with which they are genuinely joined. This study reports new verifications in the field of
purchaser acquiring behavior of buyers identifying with the area markets of these urban regions
of Pakistan.
Commercial is most the successful instruments of facilitated advertising communication to
emotionally motivate purchasers to buy the things. It moreover has robust connection with
stimulation and the expansion of media has smeared the perceiving lines between the
commercials and amusement. (Moore, 2004).
Adelaar et al. (2003) headed study on online Cds shopping behavior of client through emotional
ads. Promoting is a non-individual and paid structure where considerations, thoughts, things or
organizations, and information, are progressed through media (visual, verbal, and content) by a
perceived supporter to impact or effect conduct.
The consequences of research study plainly demonstrate that there is a weak association between
emotional advertisements with the consumer buying behavior. (ZU Abideen, 2011)
It is built from the research that purchasers buy items in the zones of 3 focused cities (Islamabad,
Rawalpindi and Lahore) through emotional advertisement, instead of environmental
advertisement. The environmental advertisement of the buying partners these purchasers with
unexpected or drive purchasing yet in this examination customer buy those items from which
buyer are sensitively connected. Furthermore, these connections are made through promotion as
sound, feature and content structure, which requests him or her. (ZU Abideen, 2011)
TV advertising is an astoundingly fruitful instruments of bestowing message to its proposed
vested party as it can join visual & sound correspondence and thusly this makes ads is a
fundamental medium to make people aware of any things. There are differing things which the
women purchasers used, in that the FMCG things they pick in the wake of getting information
about those particular things. This paper presents the outcomes of a study planned to test the
Impact of TV publicizing and on women clients' buying behavior.

Unlike past studies, regardless, the effects of such correspondence structures on women's' are
evaluated in the association of family unit decision making however in this examination paper
the item is to study on different components which affected on buying lead, their satisfaction
with advancing strategies in FMCG things, their month to month utilize etc. The Primary data
has been assembled from 30 respondents from Chandrapur City. A Structured overview has been
encompassed contained 10 request which has been asked to women clients. The discretionary
data has been accumulated from books, destinations, articles, TV et cetera. Finally some Finding,
imperatives, conclusions & proposal has been formed in this paper. Regardless of the way that
the different media spread care however TV publicizing accept a basic part in buying behavior of
women purchasers. (Geeta Sonkusare, 2013)
Geeta Sonkusare (2013) concluded that TV advertising have uncommon impact on obtaining
behavior of women customers. Before gaining anything customers/ clients accumulates
information for their real purchasing decision making activities along these lines publicizing is
generally gotten to get information about FMCG things. There are different variables influenced
on acquiring behavior of women buyers in that it has been watched that Social and individual
components have more affected. Most prominent women clients get influenced by verbal trade in
chandrapur city. It has been also induced that Maximum no. of women purchasers are pulled in
towards the showcasing method through advancing and Maximum no. of buyers from
Chandrapur city utilizes month to month more than 2000 rupees on acquiring FMCG things.
Along these lines Television publicizing accept a critical part in buying behavior of women
buyer in Chandrapur city.
From the beginning of 20th century efforts have been done to make web ads more like TV ads. In
fact now they are trying it to bring about a noticeable improvement than TV advertising. For this
reason they want to make internet advertising more attractive and more demanding to customers.
(Srivastava Priyanka 2012)
Different types of internet marketing are being used to attract customers like presentation
advertising, web search advertising, website search improvement, online networking
showcasing, email showcasing, referral promoting and substance promoting. (Srivastava
Priyanka 2012)
Email marketing is one of the most useful and most successful types of advertising because it
targets directly to the person whom we want to target. Email marketing is also used to retain
consumers or to build loyalty among consumers. (Srivastava Priyanka 2012)
Consumer usually use internet to get information about the products and to evaluate the
alternatives as shown in previous researches. Internet is widely used to evaluate different
alternatives, although online advertising are entertaining but usually it is not considered credible
and reliable among masses and even many people call it irritating. Because now a days trick
banners, pop ups and pop under are used to advertise the product, It is becoming more complex

and more non reliable. Spam advertisements have also affected the reliability of online
advertisements but online advertisements and online marketing is improving day by day and
eventually it will be the most used advertising type. (Srivastava Priyanka 2012)
As showed by the late research on buyer conduct on the Internet customers, there are four
diverse customer clusters with unique suggestions and motivations:
Investigation
Entertaining
Shopping
Information
(Cotte, Chowdhury, Ratenshwar & Ricci, 2006)

All around in a study on impact of web ads on buyer conduct, the conclusions which began from
the survey which is coordinated over the 100 number of people from Lucknow (Raja ji Puram &
Alambagh) city. (Srivastava Priyanka 2012)
G. Bakshi and Dr. Gupta (2003) conducted research on web promoting and its effect on buyer
purchasing conduct. Their study is focused around the degree and mixed bag of online promotion
which is developing significantly. Organizations are using more on online commercial than some
time recently. Understanding the elements that impact online ad viability is indispensable. This
study looks to investigate the variables that help the adequacy of online notices and influence
purchaser obtaining aim.
Online advertisement has become quickly in the most recent decade. By 2000 web promoting
using in the US arrived at $8.2 billion. (Hollis, 2005).
Now a day's people spend most of their time on internet or social websites. However, the
becoming reliance on web as a definitive source data and correspondence, make it a main ad
stage, also later internet promoting developed to turn into a key element in which organizations
attain reasonable returns for their items and administrations. Internet advertising is a sort of bulk
correspondence which is focused around customary type of promoting yet creates its
correspondence methods in connection with the new specialized and medium centered
prerequisites. Comprehensively, internet advertisement is about conveying ads to Internet/online
clients through Web locales, email, and promotion backed programming and Internet-empowered
advanced mobile phones. (G. Bakshi and Dr. Gupta, 2003)
G. Bakshi and Dr. Gupta (2003) concluded that with the expanded selection promotion splitting
of the Internet, World Wide Web is getting to be step by step a standard ad stage.
Data and interchanges of new innovations, has made the insights group and development this
group has set a specific situations confronting the crowd. Business promoting Brokers are
attempting adjacent to utilization of the images, shades mix, with attention on standards and
practices of web publicizing to utilization of the most recent correspondence and media advances

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for items present, to pull in the group of onlookers tends thana item or administration. They are
attempting to speak with a more extensive crowd that, acquainted with their most loved through
diverse ways and at present are attempting to publicize items with this working. Essential
variable in fruitful advertising and promoting methodologies is an understanding of shopper
conduct. (Gilaninia, Taleghani, & Karimi, 2013)
Advertising is a vital segment of advertising, particularly e-marketing. (Strauss 2001)
Advertising is carried out:
1.
2.

Offline Advertising or customary media (Like Newspapers, FM Radio, Magazine,


TV)
Internet Advertising (Like pop ups and Emails). (Solomon 1996)

Web publicizing from 1994, has suggested truly and specialists additionally know watch it as
upheaval in promoting from the approach of TV. (Sun, 2010)
Done methodology of procurement through web which can be called online buying. Web buy is
carried out as an approach to spare time buy than that of customary buy. (Gilaninia, 2013)

Gilaninia, Taleghani, & Karimi (2013) reasoned that including preferences of web promoting can
be refered to two-route correspondence with the gathering of people, moderately minimal effort,
widespread and sheets access. Web publicizing is productive on purchaser conduct in procedure
of items buy.
SMS advertisement makes a great deal of chances for the advertisers in advancing their items
successfully. SMS is an instrument through which the advertisers line on the way to the clients
and influence them to buy. SMS advertisement is additionally utilized to investigate the clients
want and buying behavior. (Aamir, W. Ikram, Syed M Ali, S. Amjad Hasnu, & Khalid Zaman,
2013)
Judgment of client behavior matters in light of the fact that spontaneous commercials may
prompt customers' disappointment and unanticipated results. (Barnes, S. and E. Scornavacca,
2003)

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CHAPTER 3: RESEARCH METHODS


3.1 Method of Data Collection
Survey Questionnaire used as the method of data collections from the respondents. The data

has been collected from the students of Iqra University Main Campus located in Karachi,
Pakistan, the no.1 private sector business University of Sindh. and giving them the questionnaire
to fill it out.

3.2 Sampling Technique


Random sampling technique has been used to collect the data. We have been asked the question
randomly from the students to reveal their perceptions.

3.3 Sample Size


A sample sizes of 90 respondents comprising of general consumers.

3.4 Instrument of Data Collection


We have used close ended questionnaire for this research as an instrument for data collection.

The questionnaire consists of close ended questions. Many questions that are given are based
upon the perception of the customers. They reveal their perception about the impact of
advertising on consumer buying behavior.

3.4.1 Validity and reliability test


Our test is reliable and valid. Reliability analysis has been performed using SPSS and Cronbach's
Alpha found is 0.649 which indicates acceptable reliability. It has been tested on the population
and it will give the same result on retest.

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3.5 Research Model Developed


TV Advertisement
Covert Advertising
Commercial breaks

Consumer buying behavior

Online Advertisement
Website ads
Pop up ads

Direct Marketing
Email
SMS
One to One marketing-

3.6 Statistical Technique


In this research SPSS has been used to identify the result. T-Test has been used to interpret the
findings and to see the hypothesis that was given were confirmed or rejected in the process.

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CHAPTER 4: RESULTS

4.1

Findings and Interpretation of the Results

Case Processing Summary


Cases

Valid

90

100.0

Excludeda

.0

Total

90

100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics
Cronbach's
Alpha

N of Items

.649

14

A commonly-accepted rule of thumb is that an alpha of 0.7 (some say 0.6) indicates acceptable
reliability.
The alpha coefficient for the 14 items is .649, so we can say that the items have acceptable
internal consistency.

Scale Statistics

14

Mean

Variance

Std. Deviation

N of Items

34.89

20.167

4.491

14

Group Statistics
Gender of
the
respondent
TV

DM

OA

Mean

Std. Deviation

Std. Error Mean

Male

73

2.5452

.51882

.06072

Female

17

2.5412

.42875

.10399

Male

73

2.5918

.50381

.05897

Female

17

2.5059

.40693

.09869

Male

73

2.3048

.47369

.05544

Female

17

2.3971

.38587

.09359

The means are very important. They show us the magnitude of the difference between genders
and we can see which group has a higher or equal mean. For example, we can see that the mean
for Males is almost equal that of females in all three variables. We can see that male participants
gives nearly equal consideration to all three variables when compared to Female participants.

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Independent Samples Test


Levene's Test
for Equality of
Variances

t-test for Equality of Means


95%
Confidence
Interval of the
Difference

F
TV

Equal variances 1.001


assumed

Sig.

df

.320

.030

88

Equal variances
not assumed
DM

Equal variances 1.010


assumed

.318

Equal variances
not assumed
OA

Equal variances
assumed

.286

.594

Equal variances
not assumed

Std.
Sig.
Mean
Error
(2- Differenc Differenc
tailed)
e
e
Lower Upper
.976

.00403

.13563

-.2655 .27357
1

.033 28.04
8

.974

.00403

.12042

-.2426 .25068
2

.654

.515

.08590

.13132

-.1750 .34686
7

.747 28.65
0

.461

.08590

.11497

-.1493 .32116
6

-.74
6

.457

-.09226

.12360

-.3379 .15337
0

.403

-.09226

.10878

-.3149 .13041
3

88

88

-.84 28.42
8
3

Since the Sig (2-Tailed) value of all variables i.e. TV advertisement (TV), Direct Marketing
(DM) and Online advertisement (OA) is greater than 0.05, we can conclude that there is no
statistically significant difference between the mean number of variable for the male and female
conditions.

4.2

Hypotheses Assessment Summary

S.NO.

Hypotheses

SIG.
2-tailed

H1

TV advertisement

0.030

0.976

Empirical
Conclusion
Rejected

H2

Online advertisement

-0.746

0.457

Rejected

16

H3

Direct marketing

0.654

0.515

Rejected

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CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS
AND FUTURE RESEARCH

5.1 Conclusion
There is no impact of TV advertising on consumer buying behavior.
There is no impact of Online advertising on consumer buying behavior.
There is no impact of direct marketing on consumer buying behavior.

5.2 Discussions
From our results we concluded that people of Pakistan don't get influenced by advertisement
even if the product is advertised on TV by their favorite celebrity or actor. TV advertisements are
the source of information for them about a new product but pursuing a new product is may be
influenced by other sources but not TV advertisements. They dont switch or pursue a product
too often As per researches, Pakistan has a low rate of early adopters along these lines our
hypothesis has been rejected and people of Pakistan demonstrated that they don't get influenced
by TV advertisements and change their brands and they are brand steadfast.
The finding of this research shows that there exists a feeble relationship between online
advertisements with the consumer buying behavior. Online advertisement has even worst
situation as compared to TV advertisement. There is an uncertainty among people about online
ads so they dont take interest in online ads and simply ignore them.
The work demonstrates that the items advertised through direct marketing like SMS or Emails
have once in a while any importance to the client's specific needs. The research also shows that
customers of social group of students do not spend time to read promotional messages or Emails.
People dont have time to entertain direct marketers and gets irritated when listen to their calls.

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5.3 Implications and Recommendations


Characterize Communication i.e. their objective ought to be to concentrate on a solitary
advantage. In attempting to convey an excess of things, the customer will just get confused.
Like any promoting communications web ads needs to be dictated by a set of advertising
objectives. Going hand in hand is possible communication objectives that an affiliation may need
to accomplish through its communication:
Build brand loyalty
Increase website traffic
Generate sales
Build a social media following
Improve customer convenience

5.4 Future Research


This research has been conducted students, thus aggregate up this finding, it is recommended for
future researchs to do this research by using distinctive gatherings.

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