Advertising is a form of communication intended to convince the audiences or consumers to purchase or take some action upon products, information or services. In this study, we tried to find out the impact of advertising on consumers’ minds about the product and their buying behavior. We have surveyed 100 respondents who are studying in the universities of the southern part of Bangladesh to identify the relationship between consumer buying behavior and advertisement. We mainly collected our data from three universities which are Khulna University, University of Barisal and Patuakhali Science and Technology University. The major finding of our study after analyzing all data is that there is a positive impact of advertising on consumer’s buying behavior and advertising plays a vital role to know about a new product.
IMPACT OF ADVERTISING ON CONSUMER’S BUYING BEHAVIOR
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An Assignment
on
IMPACT OF ADVERTISING ON CONSUMER’S BUYING BEHAVIOR
Prepared by:
Md. Enamul Islam Shemul
(Level-1, Semester-I)
Department of Marketing
Faculty of Post Graduate Studies
Patuakhali Science and Technology University
Submitted to:
Abdullah Al-Towfiq Hasan
Lecturer
Department of Marketing
Faculty of Business Administration and Management
Patuakhali Science and Technology University
An assignment for the partial fulfillment for the requirements of the Course Marketing
Management, Course Code MKT 5101 in Masters of Business Administration
Submission Date: 31 October, 2018
Faculty of Post-Graduation Studies
Patuakhali Science and Technology University
Dumki, Patuakhali-8602
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Table of Content
Chapter Titles Page No.
Group Member Details 2
Table of Content 3
Abstract 4
Chapter 1 Introduction 5-
1.1 Background of the Study 5
1.2 Objectives of the Study 6
1.3 Statement of Research Hypothesis 6
Chapter 2 Materials and Methods 6-7
Chapter 3 Results and Discussion 9-13
3.1 Gender of the Respondents 9
3.2 Preferred Media 9
3.3 Preferred Advertisement Types 10
3.4 Statistical Analysis 10-13
Chapter 4 Conclusion 14
4.1 Findings of the Study 14
4.2 Conclusion 14
References 15
Chapter 5 Appendix 16-18
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Abstract
Advertising is a form of communication intended to convince the audiences or consumers to
purchase or take some action upon products, information or services. In this study, we tried to
find out the impact of advertising on consumers’ minds about the product and their buying
behavior. We have surveyed on 100 respondents who are studying in the universities of
southern part of Bangladesh to identify the relationship between consumer buying behavior
and advertisement. We mainly collected our data from three universities which are Khulna
University, University of Barisal and Patuakhali Science and Technology University. The
major finding of our study after analyzing all data is that there is a positive impact of advertising
on consumer’s buying behavior and advertising plays a vital role to know about a new product.
Keywords: Impact of Advertisement, Consumer Awareness, Consumer Perception, Consumer
Buying Behavior.
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Chapter 1: Introduction
1.1. Background of the Study
Advertising is a marketing concept which aims to influence the buying behavior of customers.
Whereas consumer behavior is the process and activity by which people select, purchase,
evaluate and consume the product or service to satisfy the need or want. (Guolla, 2011) A
company can never be a leader in the market unless they invest lots of their budget in their
promotional strategies. Advertisement is part of promotion mix strategy of a business. Because
to be successful and for being a leader an organization has to promote its product effectively
so as to create its awareness as well as to induce them to buy. Advertisement can be done in
several ways i.e. television, newspaper, radio, magazines, internet etc. With the help of
advertisement, we tent to create awareness about the product of the organization. For that
promotional strategy of any business organization advertisement is of the key importance.
Advertisement includes the name of the product or service, its features, and its benefits.
Advertising is done to create likeness, attraction and influence buying behavior in positive way.
Attitude-towards-the ads, is an interesting theory of advertising often used to understand the
buying behavior. Effective advertisement influences the attitude towards brand and finally
leads to purchase intention (Goldsmith & Lafferty, 2002). Ideally, consumers buying behavior
is the products purchase decision (Adelaar et al., 2003).
There are various modes which are opted to do advertisement. The most impactful type of
advertisement is television advertisement. In the modern world desktop online advertising and
mobile advertising has also gained popularity along with the traditional form of advertisement
like newspaper advertisement, radio advertisement, cinema and magazines. But it is very
important the advertisement should me designed and conveyed in such a way that it create
curiosity and awareness to the consumer. An advertisement should have these following
features in order to be effective:
1. It should be able to persuade people. Advertisement must be able to make people
believe in what you promise or convey through advertisement.
2. It should be economical and resources for advertisement should be used optimum.
3. Reach to the maximum number of people.
4. It should be easy to memorize by the people
5. It should be educative and able to have the reader’s attention
Advertisers are using different techniques to effectively convey commercial messages to create
purchase decision. Hierarchy of effects model often used to assess the effectiveness of
advertisement and is a series of steps such as, attention, interest, desire and purchase decision
(Cavill & Bauman, 2004; Grover & Vriens, 2006).
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1.2. Objectives of the study
Primary Objective:
The main objectives of this study is to identify the level of influence of advertisement on
consumer buying decision.
Secondary objectives:
1. To identify the advertising media that gets the attention of consumers.
2. To know what types of advertisement attracts the customer most.
3. To identify how the advertisements change/influence the purchasing behavior of the
consumer.
1.3. Statement of Research Hypothesis
Null Hypothesis H0: There are no significant relationship between consumer buying behavior
and advertisement.
Alternative Hypothesis H1: There are significant relationship between consumer buying
behavior and advertisement.
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Chapter 2: Materials and Methods
Description of the Population
We selected the students of Southern part of Bangladesh who studies in Khulna University,
Barisal University and Patuakhali Science and Technology University as the population of our
study.
Sample Size
This study was conducted in Khulna University, Barisal University and Patuakhali Science and
Technology University. A sample of 100 students who studies in these three universities for
the purpose of collecting information through online by a structured questionnaire in October
2018.
Selection Technique
To select the respondents’ random sampling method is used. We select 100 students randomly
these universities as a ratio of 3:3:4 for KU, BU and PSTU respectively.
Survey Instrument
The survey at these three universities had conducted with a structured questionnaire for the
respondents. We conducted an online survey. The research took the 2-part questionnaire
(Section A & Section B) applied to the respondents on the basis of different factors which will
be supplemented by the observation of the key-informants’ response. So designing the
questionnaire for the residents was a vital work.
The first section of the questionnaire stimulated biographical data on name of the respondent,
gender, contact no of the respondents and their likings of advertisements.
The perceived factor scales measured strongly agree to strongly disagree items. The Likert
scale questions were based on statements to which respondents were asked to respond in terms
of a 5- point scale that represented a continuum from very positive to very negative. The
questions classified into the five categories (i.e., Statements/ Impact of advertisement on a
product, Impact of Advertisement to create consumer awareness, Impact of Advertisement to
create perception and Effect on buying behavior).
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Conceptual Framework
Procedure of Data Analysis
We use SPSS software for analyzing calculating factor analysis of our collected data. We
calculated correlation and regression from our collected data.
Consumer Awareness
Consumer Perception
Consumer Buying
Behavior/Decision
Impact of
Advertisement
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Chapter 3: Results and Discussion
3.1. Gender of the Respondents
We have surveyed on 100 respondents. Among them 88% are male and the rest 12% are
female.
3.2. Preferred Media
Here, among the 100 respondents 46% like TV ads, 3% radio, 31% internet, 9% newspaper
and the rests like billboard advertisements. We found that most of the people like television
commercials or advertisements.
88% 12%12%
Gender
Male
Female
46%
3%
31%
9% 11%
TV RADIO INTERNET NEWSPAPER BILLBOARD
Media
Media
Chart 2: Gender of the Respondents
Chart 3: Preferred Media of the Respondents
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3.3. Preferred Advertisement Types
Here, among the three advertisement types 52% respondents like informative, 28% like
persuasive and the rest 20% like comparative advertisements.
INF ORMA T IVE
P URS UA S IVE
C OMP A RA T IVE
52%
28%
20%
ADVERTISEMENT TYPES
Chart 4: Preferred Advertisement Types
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3.4. Statistical Analysis
Descriptive Statistics
Mean Std. Deviation N
Impact of advertisement on a
product 4.066 .5300 100
Impact of Advertisement to create
consumer awareness 4.093 .6510 100
Impact of Advertisement to create
perception 4.175 .5027 100
Effect on buying behavior 3.592 .7706 100
Interpretation: Among the four factors of our study i.e. Impact of Advertisement, Consumer
Awareness, Consumer Perception and Buying Behavior we get mean value of 4.0657, 4.0925,
4.1750 and 3.5920 respectively out of the Likert Scale 5. For the first three factors the
respondents are agree and for the factor of Effect on Buying Behavior the respondents may or
may not agree.
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Correlations
Impact of
advertiseme
nt on a
product
Impact of
Advertisem
ent to create
consumer
awareness
Impact of
Advertisem
ent to create
perception
Effect on
buying
behavior
Impact of
advertisement on a
product
Pearson
Correlation
1 .657**
.650**
.603**
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Impact of
Advertisement to
create consumer
awareness
Pearson
Correlation
.657**
1 .716**
.672**
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Impact of
Advertisement to
create perception
Pearson
Correlation
.650**
.716**
1 .598**
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
Effect on buying
behavior
Pearson
Correlation
.603**
.672**
.598**
1
Sig. (2-tailed) .000 .000 .000
N 100 100 100 100
**. Correlation is significant at the 0.01 level (2-tailed).
Interpretation: The relationship among all the factors are positive and statistically significant
(P<0.05). So we can say that all the factors are perfectly correlated
.
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ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 29.851 3 9.950 33.004 .000a
Residual 28.943 96 .301
Total 58.794 99
a. Predictors: (Constant), Impact of Advertisement to create perception, Impact of Advertisement on a
Product, Impact of Advertisement to Create Consumer Awareness.
b. Dependent Variable: Effect on Buying Behavior
Interpretation: Our calculated value with 5% level of significance and 3 df is 0.000 which is
less than significance value 0.05 that’s why our null hypothesis is rejected and alternative
hypothesis is accepted. So, there are significant relationship between consumer buying
behavior and advertisement
Coefficients
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) -.757 .492 -1.540 .127
Impact of Advertisement on
a Product .344 .147 .237 2.346 .021
Impact of Advertisement to
Create Consumer
Awareness
.482 .130 .407 3.700 .000
Impact of Advertisement to
create perception .234 .167 .152 1.397 .166
a. Dependent Variable: Effect on Buying Behavior
Among the all factors the value of Impact of Advertisement to Create Consumer Awareness
and Impact of Advertisement to create perception are insignificant because the value of the two
factors are 0.021 and 0.00 which is lower than 0.05. The value of Impact of Advertisement to
create perception is significant because 0.166>0.05.
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Chapter 4: Conclusion
4.1. Findings of the Study
1. Advertisement of product has a positive impact on consumer buying behavior.
2. There is a significant relationship between consumer buying behavior and
advertisement.
3. Advertisement can create consumer awareness.
4. People like the informative advertisements most.
5. They prefer television for watching advertisements.
6. Good perception about a product can be create by this product’s advertisement.
7. Advertising is a good way to know about a new product.
8. People don’t but a product without proper knowledge about that particular product.
9. A good perception created by advertisement pushes the consumer to buy the product.
10. Perfect Advertisement creates good perception about a product in consumer mind.
4.2. Conclusion
This study clearly indicates that advertisement of a product has a significant impact on
consumer buying behavior and it is very helpful to create awareness among the people. A good
and informative advertisement can create a position in consumer’s mind and increase the sales
of the company. People generally don’t buy a product with their emotions, the buy a product
after having the proper knowledge about that product. And a proper advertisement can create
awareness and good perception in the consumer’s mind which ultimately influence the
purchase motive of the consumers.
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References
Fatima, S., & Lodhi, S. (2015). Impact of Advertisement on Buying Behaviours of the
consumers: Study of Cosmetic Industry in Karachi City. International Journal of
Management Sciences and Business Research, 4(10).
Gupta, S. a. (2013). Impact of Promotional Activities on Consumer Buying Behavior: A
Study of Cosmetic Industry. International Journal of Commerce, Business and
Management (IJCBM), ISSN: 2319–2828 Vol. 2, No.6, .
Desai, K. (2014). A STUDY ON CONSUMER BUYING BEHAVIOUR OF COSMETIC
PRODUCTS IN KOLHAPUR. . Reviews of Literature Volume 1 , Issue 10 / May
2014ISSN:-2347-2723 .
Gunjan Baheti, D. R. (2012). The Impact Of Advertising Appeals On Customer Buying
Behavior. International Journal Of Research In Commerce & Management Volume No. 3,
Issue No. 11 (November) .
Ivančová, A. (2013). Is it about money or marketing? - International marketing strategies
in the luxury cosmetic industry Exploratory multiple case study of Chanel, Guerlain and
La Mer. . GRA 19003 - Master thesis .
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Chapter 5: Appendix
Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized Items N of Items
.869 .881 4
Inter-Item Correlation Matrix
Impact of
advertisement
on a product
Impact of
Advertisement
to create
consumer
awareness
Impact of
Advertisement
to create
perception
Effect on buying
behavior
Impact of advertisement on a
product 1.000 .657 .650 .603
Impact of Advertisement to
create consumer awareness
.657 1.000 .716 .672
Impact of Advertisement to
create perception .650 .716 1.000 .598
Effect on buying behavior
.603 .672 .598 1.000
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Questionnaire
The impact of advertisement on consumer buying behavior
Personal Detail of the Respondent:
1. Name of the Respondent:
2. Gender of the Respondent: A. Male B. Female
3. Contact no. or E-mail Id of the respondent:
4. Have you ever been exposed to advertisement of any kind?
Yes
No
Statements/ Impact of advertisement on a
product
Strongly
Disagree
(1)
Disagree
(2)
Neutral
(3)
Agree
(4)
Strongly
Agree
(5)
1. Advertisement influence to buy a
product
1 2 3 4 5
2. Advertisement increase sales 1 2 3 4 5
3. Advertisement provide information
about your unfilled need
1 2 3 4 5
4. Advertisement helps to retain
consumer
1 2 3 4 5
5. Advertisement effects on consumer
demand
1 2 3 4 5
6. Advertisement effects on consumer
choice
1 2 3 4 5
7. Advertisement helps to reach target
audience
1 2 3 4 5
Impact of Advertisement to create
consumer awareness
Strongly
Disagree
(1)
Disagree
(2)
Neutral
(3)
Agree
(4)
Strongly
Agree
(5)
1. Advertisement create awareness
among target audience
1 2 3 4 5
2. Consumer awareness is beneficial for
product purchase decision
1 2 3 4 5
6. Which type of advertising your attention?
Informative
Persuasive
Comparative
5. Which advertising media gets your attention?
TV
Radio
Internet
Newspapers
Billboards
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3. Advertisement is important to create
new product awareness
1 2 3 4 5
4. Awareness is the stimulus for
purchase decision
1 2 3 4 5
Impact of Advertisement to create
perception
Strongly
Disagree
(1)
Disagree
(2)
Neutral
(3)
Agree
(4)
Strongly
Agree
(5)
1. Perfect Advertisement create good
perception about a product in
consumer mind
1 2 3 4 5
2. Perception helps to create brand
identity.
1 2 3 4 5
3. Perception is important for consumer
to take a decision.
1 2 3 4 5
4. A good perception enrich brand
promotion.
1 2 3 4 5
5. A good perception about a product
can influence buying decision.
1 2 3 4 5
6. Perception is effective. 1 2 3 4 5
Effect on buying behavior Strongly
Disagree
(1)
Disagree
(2)
Neutral
(3)
Agree
(4)
Strongly
Agree
(5)
1. I often buy product solely based on
advertisement.
1 2 3 4 5
2. I purchase a product after being
aware.
1 2 3 4 5
3. Good perception push me to buy a
product.
1 2 3 4 5
4. I believe the advertising
Message.
1 2 3 4 5
5. I am satisfied after purchasing
advertised product.
1 2 3 4 5
Thank You.