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A

PROJECT REPORT ON

|IMPACT OF ADVERTISING ON CUSTOMERS DECISION

MAKING PROCESS}

PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF MBA

PROGRAMME AT

THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

JAIPUR

PROJECT SUBMITTED BY : PROJECT GUIDE

Group: S103 Prof. - Veena DuttaGroup Members:

Arpit Singhal

Amit Singh Rathore

Chetram Sharma

Deepak Choudary

Mohit Kumawat

Nitin Gupta


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ACKNOWLEDGEMENT

In this project report I have made an honest and dedicated attempt to make the research

material as authentic as it could. And I earnestly hope that it provides useful and workable

information and knowledge to any person reading it.

During this small time frame of two months in which the project reached its completion, there

were a few people whom I would like to make a mention of and without whose help the project

would have never seen the light of day.

I also thanks to my internal guide Prof. Veena Dutta for his timely response via e-mail &

personal meeting, which immensely helped in giving the project the initial direction it needed.

I wish to express my thanks to the Indian institute of planning and management, for giving a

chance to us to do this project report on impact of advertisements on Consumer decision

making process.

Last but not least, I thank to all those who have helped me directly or indirectly during the

course of this project.


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ABSTRACT

Advertising is a form of communication used to help sell products and services. Typically it

communicates a message including the name of the product or service and how that product or

service could potentially benefit the consumer. However, Advertising does typically attempt to

persuade potential customers to purchase or to consume more of a particular brand of product or

service. Modern advertising developed with the rise of mass production in the late 19th and early

20th centuries. The crescendo of celebrities endorsing brands has been steadily increasing over

the past 20 years or so. Marketers overtly acknowledge the power of celebrity in influencing

buyer's purchase decision. They have firm believe that likeability or a favorable attitude towards

a brand is created by the use of a celebrity. The crore of rupees spent per year on celebrity

endorsement contracts show that celebrities like Amitabh Bachchan, Sharukh khan and SachinTendulkar play an important role for the advertising industry. It is an established fact that

celebrity endorsement can bestow unique features or special attributes upon a product that it may

have lacked otherwise.

Our project deals with the impact advertisement makes on a customers preference for a brand

and customer decision making. In other words, how does an ad in a television,radio,newspaper

,hoardings and banners lure a customer to go and purchase the product. Does he purchase

because of the benefits or because he liked the advertisement which has created a positive impact

on him.


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CHAPTER : 1INTRODUCTION TO ADVERTISING


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INTRODUCTION

Advertising is the means of informing as well as influencing the general public to buy products

or services through visual or oral messages. A product or service is advertised to create

awareness in the minds of potential buyers. Some of the commonly used media for advertising

are T.V., radio, websites, newspapers, magazines, bill-boards, hoardings etc. As a result of

economic liberalization and the changing social trends advertising industry has shown rapid

growth in the last decade.

Advertising is one of the aspects of mass communication. Advertising is actually brand-building

through effective communication and is essentially a service industry. It helps to forms the basis

of marketing.

Advertising plays a significant role in today's highly competitive world. A career in

advertisement is quite glamorous and at the same time challenging with more and more agencies

opening up every day. Whether its brands, companies, personalities or even voluntary or

religious organizations, all of them use some form of advertising in order to be able to

communicate with the target audience. The salary structure in advertising is quite high and if you

have the knack for it one can reach the top. It is an ideal profession for a creative individual who

can handle work-pressure.Today, new areas are emerging within advertising like event management, image management,

internet marketing etc. Event management wherein events are marketed, Image management

wherein a particular profile of an individual or an organization is projected. Internet marketing

has also brought about a lot of changes in advertising as Internet means that one is catering to a

select group of audience rather than a mass audience.

Today 'Celebrity Endorsement' has attracted immense debate on whether it really contributes to

the brand building process or whether it is just another lazy tool to make the brand more visible

in the minds of the consumers. Although it has been observed that the presence of a well-known

personality helps in solving the problem of over-communication that is becoming more

prominent these days, there are few undesirable impacts of this practice on the brand.

The issue of matching the values of the celebrity with the brand values is also very important, i.e.

getting the right celebrity to endorse the right brand. Consumers perceive the brand as having


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inefficient use of promotional funds. However, this is changing as new advertising technologies

and the emergence of new media outlets offer more options for targeted advertising. Advertising

also has a history of being considered a one-way form of marketing communication where the

message receiver (i.e., target market) is not in position to immediately respond to the message

(e.g., seek more information). This too is changing. For example, in the next few years

technologies will be readily available to enable a television viewer to click a button to request

more details on a product seen on their favorite TV program. In fact, it is expected that over the

next 10-20 years advertising will move away from a one-way communication model and become

one that is highly interactive. Another characteristic that may change as advertising evolves is

the view that advertising does not stimulate immediate demand for the product advertised. That

is, customers cannot quickly purchase a product they see advertised. But as more media outlets

allow customers to interact with the messages being delivered the ability of advertising to

quickly stimulate demand will improve.

INFORM PERSUADE REMIND

Advertising is only one element of the promotion mix, but it often considered prominent in the

overall marketing mix design. Its high visibility and pervasiveness made it as an important social

and encomia topic in Indian society. Promotion may be defined as the co-ordination of all seller

initiated efforts to set up channels of information and persuasion to facilitate the scale of a good

or service. Promotion is most often intended to be a supporting component in a marketing mix.

Promotion decision must be that it may integrated and co-ordinate with the rest of the marketing

mix, particularly product/brand decisions, so effectively support an entire marketing mix

strategy. The promotion mix consists of four basic elements. They are:-

UNAWARE AWARENESS

INTENT PURCHASE


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They are:-

Advertising

Personal Selling

Sales Promotion, and

Publicity

Advertising is the dissemination of information by non-personal means through

paid media where the source is the sponsoring organization.

Personal selling is the dissemination of information by non-personal methods,

like face-to-face, contacts between audience and employees of the sponsoring

organization. The source of information is the sponsoring organization.

Sales promotion is the dissemination of information through a wide variety of

activities other than personal selling, advertising and publicity which stimulate

consumer purchasing and dealer effectiveness.

Publicity is the disseminating of information by personal or non-personal means

and is not directly paid by the organization and the organization is not the source.

1.1ORIGIN AND DEVELOPMENT OF ADVERTISING

It has been wrongly assumed that the advertising function is of recent origin. Evidences suggest

that the Romans practiced advertising; but the earliest indication of its use in this country dates

back to the middle Ages, when the use of the surname indicated a mans occupation. The next

stage in the evolution of advertising was the use of signs as a visual expression of the

tradesmans function and a means of locating the source of goods. This method is still in

common use. The seller in primitive times relied upon his loud voice to attract attention and

inform consumers of the availability of his services. If there were many competitors, he relied

upon his own personal magnetism to attract attention to his merchandise. Often it became

necessary for him to resort to persuasion to pinpoint the advantages of his products. Thus, theseller was doing the complete promotion job himself. Development of retail stores, made the

traders to be more concerned about attracting business. Informing customers of the availability of

supplies was highly important. Some types of outside promotion were necessary. Signs on stores

and in prominent places around the city and notices in printed matters were sometimes used.

When customers were finally attracted to the store and satisfied with the service at least once,


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they were still subjected to competitive influences; therefore, the merchants signs and

advertisements reminded customers of the continuing availability of his services. Sometimes

traders would talk to present and former customers in the streets, or join social organizations in

order to have continuing contacts with present and potential customers.

As the markets grew larger and the number of customers increased, the importance of attracting

them also grew. Increasing reliance was placed on advertising methods of informing about the

availability of the products. These advertising methods were more economical in reaching large

numbers of consumers. While these advertising methods were useful for informing and

reminding, they could not do the whole promotional job. They were used only to reach each

consumer personally. The merchant still used personal persuasion once the customers were

attracted to his store. The invention of hand press increased the potentialities of advertising. By

Shakespeares times, posters had made their appearance, and assumed the function of fostering

demand for existing products. Another important event was the emergence of the pamphlet as an

advertising medium. The early examples of these pamphlets disclose their sponsorship by

companies want to generate goodwill for their activities. The low cost of posters and handbills

encouraged a number of publishers to experiment with other methods.

1.2 DEFINITION OF ADVERTISING:

The word advertising originates from a Latin word advertise, which means to turn to. The

dictionary meaning of the term is to give public notice or to announce publicly .Advertising

may be defined as the process of buying sponsor-identified media space or time in order to

promote a product or an idea.

The American Marketing Association, Chicago, has defined advertising as any form of non-

personal presentation or promotion of ideas, goods or services, by an identified sponsor.

The term advertising originates from the Latin word advert ere which means to turn the mind

towards. The dictionary meaning of the term advertising is to give public notices or to

announce publicity. This suggests that advertising acts as a marketing vehicle and is useful for

drawing the attention of people towards a specific product/ service/manufacturer. Advertising is


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an activity or a process while advertisement is a specific piece of communication appearing in

press, radio or TV.

According to the American Marketing Association advertising is defined as Any paid form ofnon personal presentation and promotion of ideas, goods or services by an identified sponsor.

According to David Potter The only institution we have for instilling new needs, for training to

act as consumer for altering mens values and thus for hastening their adjustment to potential

abundance is advertising.

This definition suggests that advertising is an institution which makes people aware of their

needs and makes them vigilant consumers. Advertising also provides better understanding of life

and brings their adjustment with potential abundance of goods and services.

According to Dun n and Barbon

Advertising is paid, non-personal communication through various media by business firms, non-

profit organizations and individuals who are in some way identified in the advertising message

and who hope to inform or persuade members of a particular audience.

This definition suggests that the advertiser identifies himself in the advertisement and the

Purpose of advertising is to inform and to persuade people of a specific type.

1.3 FEATURES OF ADVERTISING:

1. Advertising provides information:

The basic purpose of advertising is to provide information about products, goods, services or

ideas to perspective buyers. The details of products such as features, uses, prices, benefits, other

instructions to be followed while using the product are given in the advertisements.

2. Advertising is a paid form of communication: Advertising may be in any convenient form such

as sign, symbol, slogan, Illustration or message.


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3. Advertising is a non-personal presentation: Advertising is non-personal in character as against

Salesmanship which is personal (face to face communication) in character. In Advertising, the

message is given to all and not to one specific individual .e.g. T.V., radio, etc.

4. Advertising is an art, science and profession:

It is an art as it needs creativity for raising its effectiveness. It is treated as science as it has its

principles, rules, etc. Advertising is now treated as profession with its professional bodies and

code of conduct for members.

5. Creativity-the essence of Advertising:

Advertising is a method of presenting a product in an artistic, attractive and agreeable manner.

This is possible through the element of creativity which is the essence of Advertising of the

present period.

6. Advertising is for persuasion:

Advertising is not only for giving information but also for appealing people to buy a specific

product. It aims at persuasion of potential customers.

7. Advertising is target oriented:

It is possible to make intensive Advertising by selecting a specific marketer specific segment of

consumers for the purpose of Advertising. This selection of specific market is called target

market.8. Advertising is an important element in marketing mix:

Advertising supports the sales promotion efforts of the manufacturer. It can make positive

contribution in sales promotion provided other elements in the marketing mix are reasonably

favorable


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1.4 MEDIAS IN ADVERTISING

Advertising is basically for giving information about products and services to consumers.

For a layman, all advertising belongs to one category. However, it is not so. Advertising can be

classified into different categories on the basis of area coverage, audience, media, and functionsand so on. Product advertising, service advertising, financial advertising and so on are also the

types of advertising though the basic purpose of all types is identical that is information and

persuasion of consumers. Advertising is a form of communication that typically attempts to

persuade potential customers to purchase or to consume more of a particular brand of product or

service.

Every major medium is used to deliver these messages, including television, radio, cinema,

magazines, newspapers, video games, the Internet, carrier bags and billboards. Advertising is

often placed by an advertising agency on behalf of a company or other organization.

1.5 Media of advertising:

MediaCommercial advertising media can include wall paintings, billboards, street furniture

components, printed flyers and rack cards, radio, cinema and television adverts, web banners,

mobile telephone screens, shopping cart, skywriting, bus stop benches, human billboards,

magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes


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("logo jets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab

doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains,

elastic bands on disposable diapers, stickers onapples in supermarkets, shopping cart handles ,

the opening section of streaming audio and video, posters, and the backs of event tickets and

supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a

medium is advertising.

PRINT MEDIA:

In print media the advertising message is printed on paper. Newspaper and magazines

are two important print media used extensively for advertising purpose. Even direct mail

advertising can be classified as print media. This media has now acquired more importance due

to increase in the number and pages of newspapers and magazines and also due to improvement

in the quality of paper and printing technology used for communicating advertising message.

Print media are useful for indoor advertising. Print media is the most widely used medium of

advertisement used by corporate, households ,manufactures, wholesalers, banks, financial

institutions, automobile industry and many more. This medium of advertisement gives the

advertiser the flexibility to select his target audience, his area of advertisement, his budget and

the timings the ads have to be placed.

a) Newspapers

You must have read Newspapers. In our country newspapers are published in English, Sinhala

and Tamil. These are the sources of news, opinions and current events. In addition, Newspapers

are also a very common medium of advertising. The advertiser communicates his message

through newspaper which reaches to millions of people.

a) Periodicals

Periodicals are publications which come out regularly but not on a daily basis. These may be

published on a weekly, fortnightly, monthly, bimonthly, quarterly or even yearly basis. For

example you must have come across magazines and journals like India Today, Femina, etc. All

these periodicals have a large number of readers and thus, advertisements published in them

reach a number of people


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OTHER/ OUTDOOR MEDIA

All the media of advertising discussed above are mostly used by consumers while they are at

home or inside any room, except radio and newspapers or magazines to some extent. Moreover

in all these media, the consumer has also to spend some money to access the advertisement.

However, there are other media available, where the consumer has to spend nothing and he can

see such advertisements while moving outside. Some of such advertising are hoardings, posters,

vehicular displays, gift items, etc.

Hoardings

While moving on roads you must have seen large hoardings placed on iron frames or roof tops or

walls. These are normally boards on which advertisements are painted or electronically designed

so that they are visible during day or night. The advertisers have to pay an amount to the owners

of the space, where the hoardings are placed.

Posters

Poster are printed and posted on walls, buildings, bridges etc to attract the attention of customers.

Posters of films which are screened on cinema halls are a common sight in our country.

Vehicular displaysYou must have seen advertisements on the public transport like buses, trains, etc. Unlike

hoardings these vehicles give mobility to advertisements and cover a large number of people.

ELECTRONIC MEDIA

This is a very popular form of advertising in the modern day marketing. This includes Radio,

television and Internet.

Radio Advertising

All of us are aware about a radio and must have heard advertisements for various products in it.

In radio there are short breaks during transmission of any programme which is filled by

advertisements of products and services. There are also popular programmes sponsored by

advertisers.


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Television Advertising

With rapid growth of information technology and electronic media, television has topped the list

among the media of advertising. TV has the most effective impact as it appeals to both eye and

the ear.

TV commercials are a popular way to mass-market messages to large audiences. Although this

medium has the ability to reach a high number of potential buyers, it is also one of the most

costly forms of advertising. For example, one 30-second TV commercial during the Super Bowl

cost about $3 million in 2009.

Infomercials are another form of television advertising. The infomercial is different than a

commercial because it is longer, includes more product information, and has more of a personal

tone. Although they are also costly to produce, infomercials are highly effective in creating

impulse buys because of their demonstrative and persuasive nature.

Internet

It is the latest method of communication and gathering information. If you have a computer and

with an access to internet you can have information from all over the world within a fraction of

second. Through internet you can go to the website of any manufacturer or service provider and

gather information. Sometimes when you do not have website addresses you take help of search

engines or portals. In almost all the search engines or portals different manufactures or service

providers advertise their products.

Mobile billboards:

Mobile Billboards are truck- or blimp-mounted billboards or digital screens. These can be

dedicated vehicles built solely for carrying advertisements along routes are selected by clients, or

they can be specially-equipped cargo trucks. The billboards are often lighted; some being backlit,

and others employing spotlights. Some billboard displays are static, while others change; for

example, continuously or periodically rotating among a set of advertisements.

Mobile displays are used for various situations in metropolitan areas throughout the

world, including:

Target advertising, One-day, and long-term campaigns, Conventions, Sporting events, Store

openings and similar promotional events, Big advertisements from smaller companies


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1.6 TYPES OF ADVERTISING

Consumer-oriented or persuasive advertising:-

Persuasive advertising surrounds our daily lives telling us to buy particular products or

services. It helps in creating and maintaining regular demand in the market. Persuasive

advertising also helps attract the attention and preference of the customers. It informs the

target audience about the various schemes of the customers. It informs the target audience

about the various schemes of sales promotion.

Informative advertising:-

Purchases of durable products are made once in a life-time. These are often expensive, so the

potential buyer requires detailed information about them e.g. TV sets, refrigerators, air-

conditioners and washing machines. The manufacturers spend a lot on informative

advertising.

Institutional or Corporate Advertising:-

The main objective of this type of advertising is building a corporate image. Corporate

advertising highlights, therefore, the objectives and achievements of a company. Big

companies such as Godrej, Telco, Reliance, JK Cement.

Financial advertising refers to advertisements issued by financial institutions like banks UTI,

GIC, LIC and companys/corporations sale of shares. These advertisements provide

information about investment opportunities, with its attendant risk and benefits.


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Classified advertising:-

Classified advertising refers to the messages which are placed under specific or particulars

headings and columns in newspapers and magazines e.g. Situation vacancy for sale and

Matrimonial.

Govt. advertising:-

It is conducted by Govt. Departments/Undertakings to promote public awareness with a view

to overcome social problems like dowry, drinking, AIDS, environmental pollution and

overpopulation. Since such advertising has a social purpose, it is also known as social

advertising.


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CHAPTER : 2CONSUMER DECISION MAKING PROCESS


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Buyer decision processes are the decision making processes undertaken by consumers in regard

to a potential market transaction before, during, and after the purchase of a product or service.

More generally, decision making is the cognitive process of selecting a course of action from

among multiple alternatives. Common examples include shopping and deciding what to eat.

Decision making is said to be a psychological construct. This means that although we can never

"see" a decision, we can infer from observable behavior that a decision has been made. Therefore

we conclude that a psychological event that we call "decision making" has occurred. It is a

construction that imputes commitment to action. That is, based on observable actions, we assume

that people have made a commitment to effect the action.

In general there are three ways of analyzing consumer buying decisions. They are:

y

Economic models - These models are largely quantitative and are based on theassumptions of rationality and near perfect knowledge. The consumer is seen to

maximize their utility. See consumer theory. Game theory can also be used in some

circumstances.

y Psychological models - These models concentrate on psychological and cognitive

processes such as motivation and need recognition. They are qualitative rather than

quantitative and build on sociological factors like cultural influences and family

influences.

y Consumer behavior models - These are practical models used by marketers. They

typically blend both economic and psychological models.

Consumer Behavior

Consumer behavior refers to the mental and emotional process and the observable behavior of

consumers during searching, purchasing and post consumption of a product or service. Consumer

behavior involves study of how people buy, what they buy, when they buy and why they buy. It

blends the elements from psychology, sociology, socio- psychology, anthropology and

economics. It also tries to assess the influence on the consumer from groups such as family,

friends, reference groups and society in general


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2.1 Model of consumer behavior

Consumers make many buying decisions every day. Most large companies research consumer

buying decisions in great detail to answer questions about what consumers buy, where they buy,

how and how much they buy, when they buy, and why they buy. Marketers can study actual

consumer purchases to find out what they buy, where, and how much. But learning about the

whys of consumer buying behavior is not so easythe answers are often locked deep within the

consumer's head.

The central question for marketers is: How do consumers respond to various marketing efforts

the company might use? The company that really understands how consumers will respond to

different product features, prices, and advertising appeals has a great advantage over its

competitors. The starting point is the stimulus-response model of buyer behavior shown in

Figure . This figure shows that marketing and other stimuli enter the consumer's "black box" and

produce certain responses. Marketers must figure out what is in the buyer's black box.

Model of consumer behavior

Marketing stimuli consist of the four Ps: product, price, place, and promotion. Other stimuli

include major forces and events in the buyer's environment: economic, technological, political,

and cultural. All these inputs enter the buyer's black box, where they are turned into a set of

observable buyer responses: product choice, brand choice, dealer choice, purchase timing, and

purchase amount.

The marketer wants to understand how the stimuli are changed into responses inside the

consumer's black box, which has two parts. First, the buyer's characteristics influence how he or


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she perceives and reacts to the stimuli. Second, the buyer's decision process itself affects the

buyer's behavior. This chapter looks first at buyer characteristics as they affect buying behavior,

and then discusses the buyer decision process.

Consumer purchases are influenced strongly by cultural, social, personal, and psychological

characteristics, as shown in Figure For the most part, marketers cannot control such factors, but

they must take them into account

2.2 Definition of consumer buying behavior:

The aim of marketing is to meet and satisfy target customer needs and wants. The field of

Consumer behavior shows how individual, group and organizations select, buy, use and dispose

of goods, services, ideas or experience to satisfy their needs and desires.

To know consumer behavior and knowing customer is a complex thing. Ideology of customer is

that they may say one thing but do not another. They may behave in a certain way, influenced by

last minute change in their mind.

2.3 Types of consumer buying behavior:

There are four types of consumer buying behavior as under:

1. Complex buying behavior

2. Reducing buying behavior

3. Habitual buying behavior

4. Variety securing buying behavior


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1. Complex buying behavior:

Complex buying behavior involves a three-step process. First, the buyer develops beliefs about

their product. Second, he or she develops attitude about their product. Third, he or she makes

thoughtful choice. Consumer engaged in complex buying behavior when they are highly in a

purchase and aware of significant differences among brands. This is usually the case when the

product is expensive, like an automobile.

2. Reducing buying behavior:

After the purchase the customer might experience dissonance that stems from noticing features

or favorable things about other brands. So a marketer should provide supportive information

which buyer feels satisfied.

3. Habitual buying behavior:

Many products are bought under condition of low involvement and the absence of significant

brands differences, e.g. salt. Consumers have little involvement in this product category. They go

to the store and reach to the brand, if they keep reaching for some brands; it is out of habit, not

strong brand loyalty. There is good evidence that consumer have low involvement with low cost

frequently purchase product.

4. Variety securing buying behavior:

Some buying situations are characterized by low consumer involvement but significant brand

differences. Here consumers often do a lot of brands switching, e.g. cookies. The consumer has

some belief cookies, choose brands of cookies without much evaluation and evaluate the product

during consumption. But next time the consumer may reach for other brands out of wish for a

sake variety rather than dissatisfaction.


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2.4 Factor affecting consumer buying behavior:

There are four factor affecting consumer buying behavior

1 .Cultural factor

2. Social factor

3. Personal factor

4. Psychological factor

1. Cultural Factors:

Culture:

Culture is most important and fundamental determinant of a persons want and behavior. A

person acquires a set of values, perceptions, preference and behavior through his or her family

and it leads to behave him a particular way.

Subculture:

Each culture is divided into a smaller sub culture. It includes nationalities, religion, social and

geographic region. There buying process is affected.

Social class:

The social classes refer to several homogeneous groups within society. There is a cast system

where the members of different cast behave in different pattern and can not change their

behavior. People of the same caste are motivated by similar marketing appears.

2. Social Factor:

Consumer is influence by such social factor as reference group, family, social role and status.


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Reference group:

Means a group that have a direct and indirect influence on persons attitude or behavior, e.g.

family, neighbors, friends and they influence in a new behavior, life style, concept, attitude for a

product. E.g. Trousers, Skin fitter, etc.

Family:

From parent a person acquire an orientation towards religion, policies, economics, ambition, love

and gain once life or children will have influence.

Roles and status

Influence by clubs, organization, if he or she member. He or She influenced by status e.g. Vice

president have Mercedes, wears suits, etc.

3. Personal factor:

Buyers decision are affected by age, occupation, life styles

1. With the age purchase decision regarding the products change

2. Occupation also plays an important role e.g. workers will buy cloths which would be

more useful in his work.

3. Life style also leads him to behave on a particular manner

4. Personality of a person will make him to think in a particular way.

4. Psychological factor:

Major psychological factor that influence the person are motivation, perception learning, belief,

and attitude.


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Motivation:

Theories that emphasize on the factors which motivate the customer Herzbergs theory:

Psychological needs like food, water, and shelter, safety needs like securities and protection,

social needs like sense of belong ness, and love, esteem needs and self actualization also affect.

Knowledge:

Knowledge is defined as an individuals state of awareness and understanding of a person, group,

object institution and ideas. It is necessary in designing of marketing activities and also

awareness should be there.

Attitude:

Attitude is also important to determining behavior. Attitude means to feel or act in a given

manner towards a person, group, objects, and ideas. Customers attitude, understanding and

awareness of the product are intimately related. A customer giving preference for a particular

product shows his attitude.

Image:

Product image also play equally important role. In determing the types of image for a product, It

is also important to decides the distinctiveness of the image. The image of the product, company

is established in purchasers mind which affects the consumer buying decision.

Intention:

It refers to the anticipated future action of the customer. The plan of the family to purchase car,

and the plan of an organization for the forth coming year are example of intention, e.g. booking a

car in advance visit to departmental stores to purchase a T.V.


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2.5 Buyer Decision Process

Now that we have looked at the influences that affect buyers, we are ready to look at how

consumers make buying decisions. The buyer decision process consists of five stages: need

recognition, information search, evaluation of alternatives, purchase decision,and post

purchasebehavior. Clearly, the buying process starts long before actual purchase and continues

long after.

Marketers need to focus on the entire buying process rather than on just the purchase decision.

The Process implies that consumers pass through all five stages with every purchase. But in more

routine purchases, consumers often skip or reverse some of these stages. A woman buying her

regular brand of toothpaste would recognize the need and go right to the purchase decision,

skipping information search and evaluation.

Need Recognition

The buying process starts with need recognitionthe buyer recognizes a problem or need. The

buyer senses a difference between his or her actualstate and some desiredstate. The need can be

triggered by internal stimuli when one of the person's normal needshunger, thirstrises to a

level high enough to become a drive. A need can also be triggered by external stimuli . At this

stage, the marketer should research consumers to find out what kinds of needs or problems

arise, what brought them about, and how they led the consumer to this particular product. By

gathering such information, the marketer can identify the factors that most often trigger interest

in the product and can develop marketing programs that involve these factors.

Information Search

An aroused consumer may or may not search for more information. If the consumer's drive is

strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the

consumer may store the need in memory or undertake an information search related to the need.

At one level, the consumer may simply enter heightened attention. The consumer can obtain

information from any of several sources. These include personal sources(family, friends,

neighbors, acquaintances), commercial sources(advertising, salespeople, dealers, packaging,

displays, Web sites), public sources(mass media, consumer-rating organizations),

and experiential sources(handling, examining, using the product). The relative influence of these


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information sources varies with the product and the buyer. Generally, the consumer receives the

most information about a product from commercial sourcesthose controlled by the marketer.

The most effective sources, however, tend to be personal. Commercial sources

normally informthe buyer, but personal sources legitimizeor evaluateproducts for the buyer.

People often ask othersfriends, relatives, acquaintances, professionalsfor recommendations

concerning a product or service. Thus, companies have a strong interest in building such word-of

mouthsources. These sources have two chief advantages. First, they are convincing: Word of

mouth is the only promotion method that is ofconsumers, byconsumers, and forconsumers.

Having loyal, satisfied customers that brag about doing business with you is the dream of every

business owner. Not only are satisfied customers repeat buyers, but they are also walking, talking

billboards for your business. Second, the costs are low. Keeping in touch with satisfied

customers and turning them into word-of-mouth advocates costs the business relatively little. As

more information is obtained, the consumer's awareness and knowledge of the available brands

and features increases. The information also helped her drop certain brands from consideration.

A company must design its marketing mix to make prospects aware of and knowledgeable about

its brand. It should carefully identify consumers' sources of information and the importance of

each source. Consumers should be asked how they first heard about the brand, what information

they received, and what importance they placed on different information sources.

Evaluation of Alternatives

We have seen how the consumer uses information to arrive at a set of final brand choices. How

does the consumer choose among the alternative brands? The marketer needs to know about

alternatives evaluationthat is, how the consumer processes information to arrive at brand

choices. Unfortunately, consumers do not use a simple and single evaluation process in all

buying situations. Instead, several evaluation processes are at work.

The consumer arrives at attitudes toward different brands through some evaluation procedure.How consumers go about evaluating purchase alternatives depends on the individual consumer

and the specific buying situation. In some cases, consumers use careful calculations and logical

thinking. At other times, the same consumers do little or no evaluating; instead they buy on

impulse and rely on intuition. Sometimes consumers make buying decisions on their own;

sometimes they turn to friends, consumer guides, or salespeople for buying advice. Marketers


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should study buyers to find out how they actually evaluate brand alternatives. If they know what

evaluative processes go on, marketers can take steps to influence the buyer's decision.

Purchase Decision

In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, theconsumer's purchase decision will be to buy the most preferred brand, but two factors can come

between the purchase intentionand the purchase decision. The first factor is the attitudes of

others. The second factor is unexpected situational factors. The consumer may form a purchase

intention based on factors such as expected income, expected price, and expected product

benefits. However, unexpected events may change the purchase intention. Thus, preferences and

even purchase intentions do not always result in actual purchase choice.

Post purchase Behavior

The marketer's job does not end when the product is bought. After purchasing the product, the

consumer will be satisfied or dissatisfied and will engage in post purchase behavior of interest to

the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase? The

answer lies in the relationship between the consumer's expectationsand the

product's perceived

performance.

If the product falls short of expectations, the consumer isdisappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the

consumer is delighted.


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CHAPTER : 3

RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY

OBJECTIVES:

To Study The Impact of Advertising on Customer Decision Making Process

RESEARCH METHODOLOGY AND RESEARCH DESIGN:

Primary data:

-Through questionnaire.

Secondary data:

- Through internet, books ,Magazines ,journals ,advertising agencies

Sample Procedure : Random sampling

Sample Size :100

Research design: The research design is the descriptive and the primary data and secondary data

will be studied and analyzed appropriately and interpreted to extract certain facts. Whenever

necessary statistical tools and financial tools like tabulation, graphs etc will be used to present

the findings effectively

SCOPE OF THE STUDY

This project helps in projecting the impact of advertisement on customers decision

making process .

LIMITATIONS

1. An in depth study might not be done because of time constraints.

2. The study will be conducted in Jaipur city (Rajasthan)only.


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This report is based on primary as well secondary data, however primary data collection

was given more importance since it is overhearing factor in attitude studies. One of the

most important use of research methodology is that it helps in identifying the problem,

collecting, analyzing the required information data and providing an alternative solution to

the problem .It also helps in collecting the vital information that is required by the top

management to assist them for the better decision making both day to day decision and

critical ones.

3.1. Research design:

Research design is the plan structure and strategy of investigation conceived so as to obtain

answers to research questions and to control variance. The research design is adopted in this

project is the Descriptive research . The main goal of this type of research is to describe the data

and characteristics about what is being studied.

There are three types of research design,

1. Exploratory research.

2. Descriptive research.

3. Causal research.

1. An exploratory research focuses on the discovery of ideas & is generally based on secondary

data. It is preliminary investigation which does not have a rigid design.

2. A descriptive study is undertaken when the researcher wants to know the characteristics of

certain groups such as age, sex, educational level, income, occupation, etc. In contrast to

exploratory studies, descriptive studies are well structured.

. A Causal research is undertaken when the researcher want to know the cause and effect

relationship between two or more variables.


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3.2 SAMPLE DESIGN

As Part of my interns I did my research work in Jaipur and various other parts of jaipur;

.Sampling Units

y Residential Areas

y Commercial Areas

y Friends & Relatives

3.3 Sampling plan:

y When only some representative items of a population are selected and data are

collected only from these items then this method is known as sampling.1. Sampling size:

y It is the basic units of the population to be sampled here in the sample size of 100

respondents are taken for carrying out research because of the limited time.

2. Sample unit:

y Sampling units means a specific group which we are going to select for our research.

y I took people of various ages because advertising is generally targeted to the these

people.

3. Sampling method:

Basically there are many sampling methods ,but in this research wehave taken the

random sampling method


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3.4 Data sources:

Research is totally based on primary data. Secondary data can be used only for the

reference. Research has been done by primary data collection, and primary data has been

collected by interacting with various people. The secondary data has been collected

through various journals and websites.

PRIMARY DATA:

Primary Data is in which the researcher uses as a base for framing the Questionnaires, which

then highlighted all the important aspects for consideration.

Primary data was collected in the form of questionnaires which is prepared by us to know the

advertising impact on consumer decision making process. The primary data has been collected us

by conducting the survey through questionnaire.

SECONDARY DATA

Secondary data already exist which has been collected by some other person or organization

for their use and is generally made available to the other researchers free or at confectioner

rate.

For the purpose of this research we are using both primary as well as secondary data. Primary

data would be collected randomly from customers watching television on regular basis.

Secondary data would be collected from various magazines, journals, newspapars, books and

internet

3.5. Research measurement tools:

As the source of collecting data will be primary and that would be obtained through survey

method by personal interview. The tool that was used is Questionnaire.

Type of questionnaire:

Structured questionnaire

Unstructured questionnaire


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A structured questionnaire is a formal list of questions framed so as to get the facts. The

interviewer asks the question strictly in accordance with the pre arranged order.

An unstructured questionnaire is most suitable when motivational factors are involved. The

interviewer ask propping question to get at key motivational. Such questionnaire facilitates theconducting of interviewer in an informal manner.

Questionnaires were the main instrument for primary data collection.

A copy of questionnaires has been enclosed in the annexure.

In addition to the questionnaire method, data was collected through references given by

investors. In the process respondents interest towards particular financial product, body

language, knowledge of financial products were also taken into consideration. Their overall

assessment was done through this method and this was the base that I carried through out whiledoing this research in every area.


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CHAPTER : 4DATA ANALYSIS & INTERPRETATION


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1) Age group of respondents.

Age group of respondent No. of respondent

20-25 2426-30 20

31-35 1836-40 22

41-45 16

Figure 1. Field Survey Report

Inference:

The survey conducted shows that most of the respondents were of the age group of 20-25 years

and the least respondents were of 41-45 years.

24%

20%

18%

22%

16%

chart no. 1 showing the age group of

repondent under survey

20-25

26-30

31-35

36-40

41-45


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2. Respondents of different gender.

RESPONDENTS NO. OF RESPONDENTS

MALE 66

FEMALE 34

Figure 2.Survey Report

Inference :

This chart shows that mostly the male are more interested in advertised products than the female

category.

66%

34%

chart No. 2 showing the results of male and

female respondent

male

female


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3 .Annual Income of the respondent

Annual income No. of repondent

60000-120000 30

120001-180000 16

180001-240000 19240001-300000 14300001-500000 12

Above 500000 9

Figure 3.Field Survey Report

Inference :

This chart shows that mostly the respondents are between the annual income of 60000 to

120000, the second highest annual income group is the 180001 to 240000,

30%

16%

19%

14%

12%

9%

chart no 3. showing the result of annual

income of the repondent

60000-120000

120001-180000

180001-240000

240001-300000

300001-500000

above 500000


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4.From where do you get the information about the product / Brand you purchase ?

Information source No.of respondent

News paper 34

Television 42Radio 10

Internet 14


Inference:

The respondents said that they got the information about the product from different media like

television,newspaper,radio,word of mouth,etc..According to the survey, television has given

information to 42% respondents,newspaper to 34%, through radio to 10%,internet 14% of

respondents.This shows that a television creates more impact on customers.

34%

42%

10%

14%

c at . 4 s i g t e res lts f t e

I f r ati s rce

news paper

Television

radio

Internet


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5.I Rely on advertisements ?

I Rely on Advertisements? No of Respondent

Strongly disagree 3

Disagree 9Neutral 11

Agree 32Strongly agree 45

Figure5.Field Survey Report

Inference

The respondents were asked whether they believe on advertisements.45% said that they rely on

advertisements and utilize the information given,3% said that they do not believe,32% said that

they sometmes believe if they find the information rational,and 11% Neutral believe.

3%

9%

11%

32%

45%

Chart no.5 showing whether the respondent

rely on advertisements

stronglydisagree

disagree

neutral

agree

stronglyagree


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6. Do you change your perception of a product by just Viewing the advertisement?

CHANGE OF PERCEPTION DUE TOADVERTISEMENT

NO. OF RESPONDENTS

Strongly disagree 15

Disagree 9Neutral 20

Agree 21Strongly agree 34


Inference

In this chart the respondents were asked if they change they thinking about a product after seeing

the advertisement.35% respondents said that they change their perception of a product after

seeing theadvertisement,21% respondent are agree about the chage of perception,15% said that

they strongly disagree to change,20% said that they ar e neutral and 9% said that it is rarely that

they change their perception after seeing an advertisement

15%

9%

20%

21%

35%

Chart No 6 showing whether the customer

change their perception due to

advertisements

stronglydisagree

disagree

neutral

agree

stronglyagree


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7 .Do you Purchase a product just by getting attracted to the advertisements?

Purchase of product just getting

attracted by advertisements

No of respondent

Yes 48

No 30

sometimes 22

Figure7. field Survey Report

Inference

In this chart the question asked to the respondents was if they purchase a product by getting

attracted to the advertisements. For this 48% said that they purchase only because by watching

the advertisements,30% said that they do not purchase the product by getting attracted to the

advertisements and 22 % said that sometimes they purchase because of the product.

48%

30%

22%

Chart No. 7 showing if the respondent

purchase the product by getting attracted by

advertisements

yes

no

sometimes


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8.Do you Think advertisement is Necessary for your decision making ?

NECESSITY OF ADVERTISEMENT IN

DECISION MAKING

NO. OF RESPONDENTS

Always necessary 40

sometimes 42

Not necessary 18


Inference

In the survey the respondents were asked how much they feel advertisement is necessary in their

decision making.40% said that it is always necessary in decision making,42% said that

advertisement sometimes plays a necessary part when they take a decision,and 18% said that

advertisemnet is not necessary in decision making .

40%

42%

18%

Chart No 8 Showing how necessary

advertisement in Decision making

alwaysnecessary

sometimes

notnecessary


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9.What are the factors which influence your decision making process?

FACTORS INFLUENCE DECISION

MAKING PROCESS

NO. OF RESPONDENTS

Product Features 32

Advertisements 20

Cost 18

Opinion of Friends 19

Others 11

Figure 9. field Survey Report

Inference

This chart shows what are the factors considering which a respondent will be influenced to

decide to buy a product.32% said that the features of the product will influence them,20% said

that advertisement will influence them to decide as they will get lots of information about the

product,18% said that the cost of the product makes tham decide to buy a product,19% said that

they will go by the opinion of friends and rest 11% said that there may be othrer factors which

will influence them to decide.

32%

20%18%

19%

11%

Chart No 9 showing the factor which

influence decision making process

Productfeatures

advertisements

costopinionoffroends

others


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10.What do you look for in an advertisements ?

WHAT YOU LOOK FOR IN ANADVERTISEMENT

NO. OF RESPONDENTS

Price of product 45

Benefit of the product 18Quality of the product 25

offers 12


Inference

In the survey the respondents were asked what are the apspect that they see in an ad..45% said

that thay see the price,18% said that they see that benefits shown in tha ad.,12% see the offers

given and 25% see the quality tpof the product shown in the ad..This shows that in larger amount

customers see the price aspect when they see an ad ,

45%

18%

25%

12%

Chart No 10 showing the respondent look for

in advertisements

priceofproduct

Benefitofthe product

qualityofthe product

offers


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11.What are the things according to you should be highlighted in an advertisement?

WHAT SHOULD BE HIGHLIGHTED INAN ADVERTYISEMENT

NO. OF RESPONDENTS

Benefit 13

Tagline 18

Company Name 35

Product Features 44

Figure 11.field Survey Report

Inference

Through this chart it is shown what are the things that should be given more priorty in anad..12% of the respondents said that the benefits of a product should be highlighted,16% said

that the tag line should be highlighted so that the customers can recall and their brand preference

will increase,32% said that company name should be given more priority, ,and rest 40% said that

the features of the product should be highlighted.From this survey we can say that , tag line of a

brand should be brought in lime light so that brand preference of that particular prouct will

increase.

12%

16%

32%

40%

Chat No 11 showing what aspect should be

highlighted in the advertisements

Benefit

Tagline

CompanyName

Product Featurs


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12.What is your response to repeated advertisement on television and radio

WHAT IS YOUR RESPONSE TO

REPEATED ADVERTISEMENT

NO. OF RESPONDENTS

Like to Watch 38

Dont like to watch 17

Get Irrited 29

Change The Channel 16


Inference

In this question the respondents were asked to give a feed back about repeated ads. which are

shown in different media especially electronic media.38% of the respondents said that theylike to

watch ,17% said that they do not like that every moment ads are shown,29% said that they get

irritated and rest 16% said that they change the channel when repeated ads of the same product

comes.

38%

17%

29%

16%

chart no 12 showing the response to

repeated advertisement in TV/Radio media

liketowatch

Dontliketowatch

GetIrretated

ChangetheChannel


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CHAPTER : 5FINDINGS, SUGGESTION ,CONCLUSION


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FINDINGS

1) The age group of between 20 -25 are more likely interested in viewing advertisements

2) The males prefer or like to watch / view the advertisements .

3) Most of the respondents like /view the television advertisements compare to other media

of adverting to get the information about the products / brands.

4) 45 of the respondent are depend on the advertisements.

5) 34 of the respondent change their perception about the brand / product due to the

advertisements.

6) 48 of the respondent purchase the products by getting attracted to the advertising.

7) 40 of the respondent says that the advertising is necessary for the decision making .

8)3

2 respondents have said that product features influence their decision making process.9) 45 respondents out of 100 said that they look for the price of a product in an

advertisement.

10)40 respondents said that the product feature should be highlighted in an advertisement.

11)38 respondent says that they like to watch the repeated advertisements.


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SUGGESTIONS

Develop more effective advertising campaigns

The advertisements should be made more creative and for the younger group of people.

Advertising messages should both be persuasive and reminder-oriented. .

To employ integrated advertising of their product.

More budgets could be devoted to TV adverts in view of the consumers.

In the advertisements the feature of the product highlighted more.

Advertising is very important for the product so the firm should concentrate on

advertisements.

The people / consumer look for the price /cost of the product ,so the price should be

mentioned in the advertisements.


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CONCLUSION

According to this study, it has found out that people notice advertisements and the

awareness level of the brand / product is good only because of advertisements.

Based on this study I would say television advertisements have more reach to the

people. Customers prefer television in comparison to other media since they get

both the audio and visual effects .This also proves that customers rely on

advertisements shown in media

Customers of the age group of 20-25 are more interested in advertisements and

brands.

For an advertisement to be effective the price, the product feature and the company

name should be highlighted. These three aspects create a great impact on product

awareness.

Hoardings and banners also create brand awareness of a product and are important

to increase brand preference.


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QUESTIONNAIRE

Name :

Gender : Male Female

Age :

Annual income : 60,000 1,20,000 120001 - 180000

180001 240000 240001 300000

300001 500000 above 500000

1) From where do you get the information about the product / brand you purchase?

o News paper

o Television

o Radio

o Internet

2) I rely on advertisements ?

o Strongly disagree

o Disagree

o Neutral

o Agree

o Strongly agree

3) Do you change your perception of a product by just viewing the advertisement ?

o Strongly disagree

o Disagree

o Neutral

o Agree

o Strongly agree4) Do you purchase a product just by getting attracted to the advertisements?

o Yes

o No

o Sometimes

5) Do you think advertisement is necessary for your decision making?


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o Always necessary

o Sometimes

o Not necessary

6) What are the factors which influence your decision making process?

o Product feature

o Advertisement

o Cost

o Opinion of friends

o Others

7) What do you look for in an advertisements?

o Price of the product

o Benefit of the product

o Quality of the product

o Offers

8) What are the things according to you should be highlighted in an advertisements?

o Benefits

o Taglines

o Company name

o Product features

9) What is your reponse to repeated advertisement on television and radio media?

o Like to watch

o Dont like to watch

o Get irriteted

o Change the channel

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