Ijraset Journal For Research in Applied Science and Engineering Technology
Authors: Princy S, Mrs. Pavithra Gopinath
DOI Link: https://doi.org/10.22214/ijraset.2023.51188
Certificate: View Certificate
I. INTRODUCTION
A. Introduction
Advertising is the best way to communicate to the customers, advertising helps to inform the customer about the brands available in the market and variety of products useful to them. Advertising is for everybody including kids, young and old. Advertising sales promotions, personal selling and public relation are mass communication tools available to marketers. Advertiser’s primary mission is to reach prospective consumers and influence their awareness, attitude and buying behaviour. Advertising plays a very crucial role in todays of competition. Advertising is one thing which has become a necessity for everybody such as the producers, the traders and the customers in today’s day to day life. Advertising plays a predominant role in customer life.
Customers are the people who buy the product only after they are made aware of the products available in the market. If the product is not advertised, no customer will come to know what products are available and will not buy the products even if the product was for their benefits. One more thing is that advertising helps people find the best products for themselves. When they come to know about the range of products, they are able to compare the products and buy so that they get what they desire after spending their valuable money. Thus, advertising is important for the customers. Advertising is beneficial for companies producing the product. Obviously, advertising plays a crucial role for the producers and the sellers of the products because: -
Advertising is also necessary for the society. Advertising helps educating people. There are some social issues also which advertising deals with like child labour, liquor consumption, girl child killing, smoking and soon. Hence, advertising plays a very important role for a society.
B. Consumer Behaviour
The term consumer behaviour is defined as the behaviour consumers exhibit in searching for, purchasing for, using, evaluating and disposing products and services that they expect will satisfy their needs. Consumer behaviour focuses on how individuals make decisions to spend their available resources such as time, effort, money, on consumptions related items. That includes what they buy, when they buy, why they buy, where they buy, how often they buy, how often they use, how they evaluate after the purchase and use it and impact of evaluations on future purchase and how they dispose it.
Consumer behaviour is defined as the decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services.
Consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires. Consumer behaviour is new issue and a controversy subject and challenging that includes individuals and what they buy, why and how to purchase them, marketing and marketing mix of marketing. In globalizing world where economic crisis deepens and competition gets erect, consumers are becoming more and more important. Every individual is a consumer. There are rapid changes in demands and desires of the consumers who are centre of the modern marketing. Companies need to increase the rate of their research and development activities in order to be able to learn these changes and improvements relating to fulfilling the demands and need of consumers. Consumer satisfaction, which is widely accepted by developed countries and gaining importance day by day, can be achieved by perceiving the consumers and consumer behaviour. Consumer behaviour is physical activity; mental and emotional people do when select, purchase, use and dispose of goods and services to satisfy their needs. Consumer behaviour is described as series of activities directly toward the acquisition use and disposal of goods and services occurs. These activities include the decisions that are made before and after the procedure.
C. Statement Of Problem
Through this research report we want to find out how consumers are influenced by the advertisement. Consequently, this study is an attempt to measure the effect of advertising on consumer in respect of consumer durable goods. In fact, this study will help to know the effectiveness of advertising on consumers, the attitude of consumers towards advertising and the relationship between the demographic character of consumers and impact of advertisement on purchasing decision of consumers.
The study starts with the following questions:
D. Objectives
E. Scope Of Study
F. Research Methodology
This study is based on the impact of advertisement on purchasing behaviour of consumers with reference to Coimbatore city. The methodology of the study includes:
The purpose for all data collection is to capture best proof that then translate to wealthy data analysis and provides the correct and credible solution to questions that has been put-forwarded.
There are two types of data collection they are:
a. Primary Data: Primary data is collected directly from the people with the help of the questionnaire for the first time and that are original in nature.
b. Secondary Data: Secondary data is collected from various sources such as books, journals, articles, newspapers, websites, published research papers in international journals and existing literatures.
2. Area Of The Study
The area of the study is referring to Coimbatore city.
3. Source Of Data
It includes both the primary data and secondary data. The questionnaire is prepared and issued to the consumers to get the responses and it is required for the research. Secondary data is collected from journals, articles, books, and websites.
4. Sample Size
150 questionnaires were collected from different consumers with reference to Coimbatore city.
5. Statistical Tools
Tools used for the study are:
a. Simple Percentage method
b. Rank analysis
c. Chi square analysis
G. Limitations
II. REVIEW OF LITERATURE
A. Reviews
24. Adarsha D (2021) “IPO underpricing is affected by the external and internal factors “analyzed the influence of perceived social media marketing elements on consumer–brand engagement and brand knowledge. They concluded that such knowledge, which developed through some experiences, boosts the confidence level of the customers to use the services and products of a brand. According to the researchers, it is an easy way to strengthen a good relationship between the company and its targeted customers. [24]
25. Ahmad, I., and Gul, R. (2021) “Impact of online service-learning on civic and social justice the behaviour of undergraduate laboratory-based graduates” analyzed the histrionic increases in scope and diversity of online advertisement than conformist one. In stated businesses are extensively using such virtual advertisements to promote versatile products and services. Mediating Role of Supply Chain Integration and Intrapreneurship between Information Technology Infrastructure and Firm Performance in the Iranian Pistachio Industry. They concluded this one is hard for an advertiser to maintain the effectiveness of online advertisements to get a positive reaction from consumers.[25]
B. Research Gap
A research gap is essentially an unanswered question or unresolved problems in a field, which reflects a lack of existing research in that space.
The previous research made in the field are, analyzing the celebrity value in advertisement, building brand loyalty, significance of advertisements in increasing profits. In the current study, analysis is done to prove the objectives of the study. The analysis is made on problems faced by consumers in buying products seen in advertisements which is not done in previous research.
III. OVERVIEW OF STUDY
A. Definitions
As defined by W.J. STANTON– “Advertising consists of all the activities involved in presenting to a group a non-personal, oral or visual, openly sponsored message regarding a product, service or idea, this message, called an advertisement is disseminated through one or more media and is paid for by the identified sponsor”.
AMERICAN MARKETING ASSOCIATION recognizes the term advertising as – any paid form of non- personal presentation and promotion of ideas, goods and services by an identified sponsor.
As defined by COHEN, ‘Advertising is a business activity, employing creative techniques to design persuasive communications in mass media that promote ideas, goods and services in a manner consistent with the achievement of the advertiser’s objectives, the delivery of consumer satisfactions, and the development of social and economic welfare.’
As defined by BURT MANNING, “Advertising is one of the important forces which serve the public interest. It is a form of open communication between those who sell and those who buy. It is a form of advocacy – open to any company or because that wants to argue its case. The jury is the public. Every purchase is a vote. “
WHEELER opines, “Advertising is any form of paid non-personal presentation of ideas, goods or services for the purpose of inducing people to buy.”
According to JOHN J. MYERS, “Advertising is dissemination of information concerning an idea, service or product to compel the action in accordance with interest of advertiser”.
ROBERT W. SARNOFF interestingly says that an “Advertising is the foot on the accelerator, the hand on the throttle, the spur on the flank that keeps our economy surging a head”.
R. V. ZACHER “Advertising is a means of communicating information pertaining to product or ideas by other than direct personal contact and on an openly paid basis with intent to sell or otherwise obtain favourable consideration.”
B. History Of Advertisement
Prior to the birth of Christ, early forms of advertisements estimated to be 3,000 years old and found in the streets of Papyrus where already discovered in the ruins of Thebes in Egypt. In the ruins of Babylon, in a thriving mercantile community in 3,000 B.C were found symbols made by tradesmen to indicate the nature of their business.
In Egypt, criers were used to announce the arrival of ships with fresh merchandise, and ancient Athenians placed signboards outside their shop doors.
The development of advertising had a direct bearing with trade and commerce. In ancient civilizations of China, Mesopotamia, Egypt, and Rome where trading and selling became recognized callings there were evidences of written communication, signs, pictorials, which became predecessor of today's trademark.
2. Development of Advertising in the 15th to 18th Century
In succeeding 3 centuries, there appeared an even increasing number of books, calendars, leaflets, newspapers and many printings movable letters allowed the distribution of an unlimited number of copies of an item.
3. Development of Advertising in the 19th and Early 20th Century
Advertising began to make a more deliberate use of means of visual communication. The invention of lithography or chemical printing from stone in 1795 to 1798 greatly widened the scope of reproduction and printing. It was cheaper than letterpress printing. In 1827, colours lithography appeared. In 1826, Joseph Nicephore Niece produced a metal plate coated with light sensitive asphaltum and thus invented photography. In 1903, the newspaper Le Matin printed the first tone block from a photograph.
4. Development of Advertising in the 21st Century
Advertisement can pretty much be noticed anywhere and everywhere around us, though, its conception dates back even before the invention of different mediums like TV, Print, Radio, Billboards, Web and etc. Yes, we are referring here of “word of mouth advertising”, which holds a good weightage till date. The advertisement field has undergone a paradigm shift in the 21st century, an endorsement of which is the digital world. This shift propelled many advertising agencies to map up with the changes in this pacey industry. Ad firms which started with the services of Print and Billboards have included TV, Web in their list today. While this has influenced these firms in increasing their manpower, on the counter side, because of the little investment needed it has also seen the dawn of start-ups in plethora, which intern gave birth to the strong competition amongst the agencies. One of the reputed and oldest firms called Ogilvy holds an upper hand in creating such ads which deliver a content that is appealing in visuals & riveting in terms of verbal. Considering the era that we are in right now where more of the creative aspects are being appreciated than ever before, it is the best time for all the creative minds to step into this beautiful yet competitive field and explore different aspects of creativity and make the viewers spellbound by their quality of content.
C. A Brief History Of Advertising
Advertising is one of the oldest segments of business, save for currency and trade. Once products and services arose, so did the need to make them known. The oldest confirmed piece of advertising dates back to 3,000 B.C. Technically, it was a print ad from ancient Egypt promoting the capture and return of an escaped slave.
Let’s fast-forward about 4,000 years. Here’s a brief look at the past five centuries of advertising:
1472: The first poster advertisement is placed on church doors in London.
1650: The first newspaper ad — a reward for 12 stolen horses — is published. (What’s with these reward-based advertisements?)
1704: The Boston News-Letter prompts its readers to place ads in its paper.
1870: The Powers style of ad copy is born. This style packed a punch — it was short, to-the-point, truthful, and convincing. Powers said the focus should be on why the consumer should buy your product or service — a message that still resonates for good reason today.
1880: Postcards become one of the hottest new ways to reach customers.
1902: Unilever creates the “longest client-agency relationship in advertising history” when it hires J. Walter Thompson Company to advertise its Lifebuoy Soap.
1902: Mellins Food advertises its brand on 25 airship flights, becoming the first brand to take this approach.
1904: The Campbell’s Kids are created, piloting the change in advertisement focus from a single ad to an entire campaign.
1922: Radio ads are born, and businesses purchase 10 mins for $100. Two years later brands would increase their investment by sponsoring an entire radio show, a concept that would eventually become known as “sponsored content.”
1925: Advertisers start to appeal to emotions, focusing on what pleasure customers would receive from their product or service. This old Ford ad exemplifies this perfectly.
1975: VCRs are introduced, and consumers begin to record shows and, therefore, skip advertisements.
1990: Computers become more popular and accessible at home, with over 5 million homes connected to the internet.
1994: The first email spam campaign launches. Banner ads are also introduced.
1995: Search engines like Yahoo! and Alta Vista are born. Ask Jeeves and Google would follow in 1997 and 1998, respectively.
2005: YouTube and Facebook (for college students only) launch.
2008: Brands start to realize the importance of having an online presence for their potential customers.
2012: Online videos reach almost 170 million viewers.
2013: Sites like Pinterest and Instagram join the social network scene.
2020: Advertising soars on digital platforms including social media, podcasts, pay-per-click (PPC), and more. Customer data plays a larger role in advertising targeting and retargeting. Lastly, a rapid increase in mobile devices sees a boost in mobile ads and SMS marketing.
Whereas almost 140 years ago, postcards were the newest form of advertising, brands today are building chatbots for Facebook Messenger and integrating artificial intelligence into their marketing and sales platforms.
D. Who are Advertisers?
Advertisers are the people at a company who are responsible for advertising a product or service. They promote messages about a brand’s products and services to build public preference for the brand.
"Advertiser" can also refer to the entity that's paying for advertising on a billboard, in a magazine, or through a website or mobile application.
Advertisers are important because the whole business of advertising is dependent on them. It’s the advertiser that incurs the cost of advertisements, so if they decide it’s not worth running ads, then the advertisement industry will be in big trouble.
All advertisers are marketers, but not all marketers are advertisers. Let's dig deeper into the differences between advertising and marketing.
E. Features Of Advertisement
Advertising’s primary purpose is to provide information about products or services to the prospective buyers. The details of products such as features, uses, prices, benefits, manufacturer’s name, so on; are in the advertisements. The key message and brand name are also there. The information supplied educates and guide consumers and facilitate them to make a correct choice while buying a product.
2. Payment of Money
One of the features of advertising is to pay the money for the advertising. Advertisement appears in the newspapers, magazines, televisions, cinema screens and website search engine pages because the advertiser has purchased some time/ space to communicate information to the potential customers. The advertiser must pay money for the advertising activities. He also decides the size, slogan, etc. given in the advertisement. Advertising is always a paid form of communication and hence commercial in nature. Thus, advertising can clarify be distinguished from publicity which is not paid for by the sponsor.
3. Non-personal Presentation
Advertising is non-personal in character as against salesmanship, which is a personal or face to face communication. Here, the message is given to all and not to one specific individual. This rule is applicable to all media including the press. However, even in it, target consumers or target market can be selected for making an AD appeal.
4. Publicity
Advertising publicizes goods, services, ideas and event events. It is primarily for giving information to consumers. This information is related to the features and benefits of goods and services of different types. It offers new ideas to customers as its contents are meaningful. The aim is to make the popularize ideas and thereby promote sales. For example, an advertisement for family planning, family welfare, and life insurance is useful for placing new ideas before the people.
5. Target Oriented
Advertising becomes effective and result-oriented when it is target oriented. A targeted advertisement intensively focuses on a specific market or particular groups of customers (like teenagers, housewives, infants, children, etc.). Here, the selection of a particular market is called a target market.
6. Art, Science and Profession
Advertising is art, science and a profession, and this is now universally accepted. It is an art as it needs creativity for raising its effectiveness. It is a science as it has its principles or rules. It is also a profession as it has a code of conduct for its members and operates within standards set by its organized bodies. In its field, AD Agencies and space brokers function as
professionals.
7. Creativity
Advertising is a method of presenting a product in an artistic, attractive and agreeable manner. It is possible through the element of creativity. The creative people (professionals) introduce creativity in advertisements. Without it, the Ads won’t succeed. Therefore, creativity is called the ‘Essence of Advertising.’
8. Entertainment
“Entertainment” is another critical aspect of advertisement. By comedy, you should not have to make the viewers chuckle by putting their stomach in their hands.
However, when I use the term "entertainment" in ads, I mean something that keeps the audience's attention and prevents them from flipping channels.
9. Consistency
All good advertisements have one thing in common, which is consistency in what they put out. An ad that stays consistent on a longer run can pull a success rate, unlike those poor ones that try to break the chain.
Such small point notes have become even more important to be followed now that the advertisement market is a saturated one.
10. Personalization and a call to action
Advertising allows brands to personalize. Those ads that want to reach more consumers have to understand that personalization is necessary. Once you know that the person has gone through the advertisement of your product, it is then the right time to get into higher action. One cannot simply back off waiting for them to come back to the service on their own.
F. Types Of Advertisement
Print advertising refers to printed advertisements, often seen in newspapers and magazines. However, this category also includes other printed materials, such as brochures, directories and flyers. Companies can place advertisements in local newspapers–whether throughout the paper or within the classifieds section—to target consumers within a geographic location.
For a more targeted audience, companies may seek advertising opportunities in magazines. Specialty magazines can help a company reach a specific group or type of people. For example, a company that sells golf equipment would place ads in magazines for golf enthusiasts because they know that audience is more likely to appreciate their product. Magazine advertising can also offer a better visual experience for consumers, as the full-page opportunities allow for more colour and high-production images than newspaper advertisements.
2. Direct Mail Advertising
Direct mail is a type of print advertising that sends advertisements to customers through the mail. Examples include brochures, catalogues, newsletters and flyers. This approach enables companies to identify an even more targeted market than other print advertising formats because it distributes ads via a direct mailing list.
For example, someone who opens a hair salon can create a flyer that announces their grand opening. They can then send that flyer to a list of residents located within five miles of the salon. To attract new customers, the owner can also include a discount coupon with the mailer.
3. Television Advertising
Television advertising is a type of broadcast advertising where companies advertise their products or services through 20-, 30- or 60-second TV commercials. It can be costly but enables companies to repeat their advertisements regularly. The costs to air television commercials can vary due to the following factors:
For example, it is much more costly to air a commercial during a widely watched event, such as the Super Bowl. While consumers now have the ability to skip advertisements on their televisions, it still serves as an effective method of reaching a large audience. Repeating advertisements help build recognition and brand awareness, and even if consumers are not watching the ads, they may still be listening to them.
4. Radio Advertising
Radio is another form of broadcast advertising that plays ads during programming breaks. Customers can listen to radio advertisements while conducting other activities, such as driving or doing household chores. Like television, radio enables the repetition of advertisements, which can give companies more recognition with consumers.
Companies can research what radio stations are popular with their target customers. They can also learn what times of day these customers listen to the radio most. For example, they may try to advertise during a morning time slot when they know many of their customers will be driving to work.
5. Podcast Advertising
In podcast advertising, companies can sponsor podcasts or have advertisements for their products or services played during the episodes. Typically, podcasts play ads at the beginning, middle and end of episodes. Similar to radio advertising, companies can research which podcasts are most popular with their target audience.
Some podcast hosts read from a script provided by the company or create their own, which can be an entertaining way for listeners to consume advertising content. Often, companies will offer a discount code available to listeners of a podcast. Besides attracting new customers, this code can help companies assess how well this advertising strategy works based on its use.
6. Mobile Advertising
Mobile advertising reaches consumers through any mobile device with internet connectivity, such as a cell phone or tablet. These advertisements may appear to consumers through social media, on web pages or within apps. For example, a customer playing a mobile game may receive ads for similar games between gameplay rounds. The benefit is that these advertisements can reach consumers no matter where they are. If individuals enable location settings, companies may even be able to target them via geographic location.
Another way companies conduct mobile advertising is by combining it with print advertisements using QR codes. When consumers see a QR code in a magazine, they can scan it using their mobile device. It could then take them to the brand's website or offer them a coupon.
7. Social Media Advertising
Companies use social media advertising to promote their products or services on various platforms. Social media advertising, like other digital advertising, enables companies to target specific audiences. They may focus on reaching customers based on their geographic location, age group or buying habits. They can either pay for the platforms to promote their advertisements, or they can use more organic methods.
For example, a small business can use organic social media advertising by asking its followers to like and re-share one of their posts. They then may pick a participant at random to receive a discount or gift. Today's businesses also utilize online influencers, bloggers or celebrities to create posts promoting their brands or products. Rather than full advertising campaigns, these methods may serve as more cost-effective techniques that enable the business to spread awareness of their brand.
8. Display Advertising
Display advertising is a type of digital advertising that uses identifiable ads. These may include banner ads at the tops or sides of web pages and pop-up ads. Another example would be the video ads that appear before or during streaming video content. Display advertising encourages users to click on them to move to the company's website, often to make a purchase. These advertisements are very prevalent online, though sometimes that can make them easy for consumers to ignore.
One method used in display advertising is remarketing or retargeting. When users visit a brand's website, they often accept browser cookies that allow the site to track their journey. If the user decides not to purchase anything on the site, the brand may target that customer and place ads for their products on other websites to remind them to return and buy the item.
9. Outdoor Advertising
Outdoor advertising refers to advertisements that consumers see outside their homes. As a result, this type of advertising is sometimes called out-of-home advertising. Examples include billboards and advertisements seen in public places or transit vehicles, such as on the sides of buses or inside subway cars.
Outdoor advertising aims to catch the attention of a large population. Usually, these ads help businesses build their brand awareness within a geographic location. The space allotted to outdoor advertisements may be limited, as can the amount of time a consumer takes to view the advertisements. Typically, these ads use bold images and fewer words so that the content is easily understood.
10. Guerrilla Advertising
Guerrilla advertising refers to less conventional methods that are generally low-cost and employ creative techniques to draw attention. A common strategy in this category is ambient advertising, in which a company places ads in public places but uses an unconventional manner. For example, rather than advertising on a bus stop, a company may paint a mural on the sidewalk advertising their services.
Guerrilla marketing sometimes invites public interaction or participation. For example, the advertisement may encourage individuals to take a photo with the ad and post it on social media using a hashtag. That is why companies using guerrilla advertising aim for eye-catching ads — to entice consumers to interact with their content. Advertising via word-of-mouth can serve as an effective and less costly way for companies to build brand awareness.
G. Advertising vs Marketing
Advertising and marketing are terms that are often used interchangeably, but they actually have very different meanings. Advertising is the process of creating awareness of a product or service through paid mediums such as television, radio, print media, digital media, and outdoor signage. These campaigns can also be created to attract new customers and strengthen existing customer relationships.
Marketing, on the other hand, is a broader term that encompasses all activities involved in creating a brand and communicating with customers. This includes advertising but also encompasses strategies such as research, product development, pricing, distribution, sales promotion, and public relations.
H. How To Make An Advertisement
Every ad campaign works to achieve different objectives. Awareness and desire campaigns help build a positive image of a brand. Interest and action campaigns have the more direct goals of encouraging the target audience to purchase a product or service. To develop your advertising campaign, take the following steps:
Because each type of campaign achieves a different objective, the first step in developing an advertising campaign is to determine your business goals. Do you want to develop brand awareness, promote a new product or differentiate your company from the competition? This decision will help you determine ad distribution options, define your budget and develop the creative strategy.
2. Determine your Target Market
Define your target market (the consumer group most likely interested in your product or service) and use that insight to tailor your ad copy and distribution strategy. Age, gender and income bracket are important demographics in advertising, but education level and marital status are also useful.
3. Define your Budget
The goal of an ad budget is to figure out how to keep costs as low as possible while still meeting your goals. You’ll need to look over you’re bookkeeping to establish a reasonable limit. For example, holiday ads are more expensive, but they also offer a bigger payoff. If you advertise online, you will have to get a bit more granular with your budget.
4. Decide on Media Platforms
Once you have established your goals, audience, and budget, you can decide which advertising types will be the most impactful. Determine if you will go with more traditional advertising, such as radio or newspaper ads, or digital advertising, such as social media or video advertising.
5. Build a Creative Strategy
Narrow down your focus to a consistent message with effective visuals that meet your specific campaign goals. Add a clear call-to-action (CTA) that encourages viewers to take the next step. Make sure your tone and visuals align with your brand image.
6. Determine your Advertising KPIs
Determining your KPIs, or key performance indicators, is an essential step in the ad development process. These metrics help you refine your advertising strategy over time. Some of the most commonly used advertising KPIs include:
7. Write the ad copy
Because the text in your ad is limited, every word counts. Marketers will spend days pouring over a single line of ad copy. Use language that will make your target audience feel like you’re talking to them, and add emotional appeals whenever you can.
8. Create a Campaign Landing Page
Landing pages are standalone web pages that have direct messaging and a specific intent. Your online advertisements will link to a landing page that helps potential customers understand your promotion and easily make a purchase.
I. Advertising Agencies
An advertising agency, often referred to as a creative agency or an ad agency, is a business dedicated to creating, planning, and handling advertising and sometimes other forms of promotion and marketing for its clients. An ad agency is generally independent of the client; it may be an internal department or agency that provides an outside point of view to the effort of selling the client's products or services, or an outside firm. An agency can also handle overall marketing and branding strategies promotions for its clients, which may include sales as well.
Typical ad agency clients include businesses and corporations, non-profit organizations and private agencies.
Agencies may be hired to produce television advertisements, radio advertisements, online advertising, out-of-home advertising, mobile marketing, and AR advertising, as part of an advertising campaign.
J. Consumer Behaviour
Consumer buyer behaviour is an inseparable part of marketing and Kotler and Keller state that consumer buying behaviour is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and organizations in order to satisfy their needs and wants. Buyer behaviour has been defined as “a process, which through inputs and their use though process and actions leads to satisfaction of needs and wants”. Consumer buying behaviour has numerous factors as a part of it which are believed to have some level of effect on the purchasing decisions of the customers.
Alternatively, consumer buying behaviour “refers to the buying behaviour of final consumers, both individuals and households, who buy goods and services for personal consumption”. From marketers’ point of view issues specific aspects of consumer behaviour that need to be studied include the reasons behind consumers making purchases, specific factors influencing the patterns of consumer purchases, analysis of changing factors within the society and others.
Consumer behaviour is influenced by many different factors. A marketer should try to understand the factors that influence consumer behaviour. Here are 5 major factors that influence consumer behaviour:
a. Psychological Factors
Human psychology is a major determinant of consumer behaviour. These factors are difficult to measure but are powerful enough to influence a buying decision.
Some of the important psychological factors are:
When a person is motivated enough, it influences the buying behaviour of the person. A person has many needs such as social needs, basic needs, security needs, esteem needs, and self-actualization needs. Out of all these needs, the basic needs and security needs take a position above all other needs. Hence basic needs and security needs have the power to motivate a consumer to buy products and services.
Consumer perception is a major factor that influences consumer behaviour. Customer perception is a process where a customer collects information about a product and interprets the information to make a meaningful image of a particular product.
When a customer sees advertisements, promotions, customer reviews, social media feedback, etc. relating to a product, they develop an impression about the product. Hence consumer perception becomes a great influence on the buying decision of consumers.
When a person buys a product, he/she gets to learn something more about the product. Learning comes over a period of time through experience. A consumer’s learning depends on skills and knowledge. While skill can be gained through practice, knowledge can be acquired only through experience. Learning can be either conditional or cognitive. In conditional learning the consumer is exposed to a situation repeatedly, thereby making a consumer to develop a response towards it.
Whereas in cognitive learning, the consumer will apply his knowledge and skills to find satisfaction and a solution from the product that he buys.
b. Attitudes and Beliefs
Consumers have certain attitudes and beliefs which influence the buying decisions of a consumer. Based on this attitude, the consumer behaves in a particular way towards a product. This attitude plays a significant role in defining the brand image of a product. Hence, marketers try hard to understand the attitude of a consumer to design their marketing campaigns.
c. Social Factors
Humans are social beings and they live around many people who influence their buying behaviour. Humans try to imitate other humans and also wish to be socially accepted in the society. Hence their buying behaviour is influenced by other people around them. These factors are considered as social factors. Some of the social factors are:
Family plays a significant role in shaping the buying behaviour of a person. A person develops preferences from his childhood by watching family buy products and continues to buy the same products even when they grow up.
A reference group is a group of people with whom a person associates himself. Generally, all the people in the reference group have common buying behaviour and influence each other.
A person is influenced by the role that he holds in the society. If a person is in a high position, his buying behaviour will be influenced largely by his status. A person who is a Chief Executive Officer in a company will buy according to his status while a staff or an employee of the same company will have different buying pattern.
d. Cultural Factors
A group of people is associated with a set of values and ideologies that belong to a particular community. When a person comes from a particular community, his/her behaviour is highly influenced by the culture relating to that particular community. Some of the cultural factors are:
Cultural Factors have a strong influence on consumer buying behaviour. Cultural Factors include the basic values, needs, wants, preferences, perceptions, and behaviours that are observed and learned by a consumer from their near family members and other important people around them.
Each and every society across the globe has the form of social class. The social class is not just determined by the income, but also other factors such as the occupation, family background, education and residence location. Social class is important to predict the consumer behaviour.
e. Personal Factors
Factors that are personal to the consumers influence their buying behaviour. These personal factors differ from person to person, thereby producing different perceptions and consumer behaviour.
Some of the personal factors are:
Age is a major factor that influences buying behaviour. The buying choices of youth differ from that of middle-aged people. Elderly people have a totally different buying behaviour. Teenagers will be more interested in buying colourful clothes and beauty products. Middle-aged are focused on house, property and vehicle for the family.
Income has the ability to influence the buying behaviour of a person. Higher income gives higher purchasing power to consumers. When a consumer has higher disposable income, it gives more opportunity for the consumer to spend on luxurious products. Whereas low-income or middle-income group consumers spend most of their income on basic needs such as groceries and clothes.
Occupation of a consumer influences the buying behaviour. A person tends to buy things that are appropriate to this/her profession. For example, a doctor would buy clothes according to this profession while a professor will have different buying pattern.
Lifestyle is an attitude, and a way in which an individual stay in the society. The buying behaviour is highly influenced by the lifestyle of a consumer. For example, when a consumer leads a healthy lifestyle, then the products he buys will relate to healthy alternatives to junk food.
f. Economic Factors
The consumer buying habits and decisions greatly depend on the economic situation of a country or a market. When a nation is prosperous, the economy is strong, which leads to the greater money supply in the market and higher purchasing power for consumers. When consumers experience a positive economic environment, they are more confident to spend on buying products.
Whereas, a weak economy reflects a struggling market that is impacted by unemployment and lower purchasing power.
Economic factors bear a significant influence on the buying decision of a consumer. Some of the important economic factors are:
When a person has a higher disposable income, the purchasing power increases simultaneously. Disposable income refers to the money that is left after spending towards the basic needs of a person.
When there is an increase in disposable income, it leads to higher expenditure on various items. But when the disposable income reduces, parallelly the spending on multiple items also reduced.
Family income is the total income from all the members of a family. When more people are earning in the family, there is more income available for shopping basic needs and luxuries. Higher family income influences the people in the family to buy more. When there is a surplus income available for the family, the tendency is to buy more luxury items which otherwise a person might not have been able to buy.
A consumer is highly influenced by the amount of savings he/she wishes to set aside from his income. If a consumer decided to save more, then his expenditure on buying reduces. Whereas if a consumer is interested in saving more, then most of his income will go towards buying products.
K. Consumer Decision-Making Process
Studying consumers’ decision-making process helps advertisers finding a way to approach those consumers and how to influence their decision-making process. Consumers pass by a process in their decision making as following:
This process shows the behaviour of a consumer while buying goods or services. Each of these stages reflects a different goal for the customer.
Advertisement and consumer behaviour have a strong relation. The role of advertisement is to influence the consumer decision-making process and influence consumer decisions in all stages based on the marketing and advertising goals.
Advertisers use different channels to reach consumers at different times. They can use social media, television, radio, newspaper or even any printed material to appeal to the consumers. Each channel can have a different effect on consumers' behaviour based on the demographics and characteristics of the consumers. These different channels also have a different effect based on the consumer stage of decision making.
Advertisers also study consumers' behaviour not only to reach them but also to get their feedback and their reactions toward the sold products. By understanding these reactions, advertisers will be able to create more effective advertising for later campaigns and better targeting and message to the consumer.
2. Advertisement role in problem recognition
Problem Recognition phase of consumer decision making is the phase when the consumers realize their needs and look for satisfying these needs. The problem which creates the need and wants can be related to the human basic needs of food, water, shelter, clothing, sanitation, education, and healthcare. The problem usually realized by the consumer when they are dissatisfied by their current state in any of the basic needs. The problem can also be due to a seek of a higher level of satisfaction through a luxury wants.
Advertisers found that creating needs and wants is very useful especially with the innovative and new products in a market. An example of the advertisement in need and want creation is an advertisement role in transferring the concept of using a car as a way of transportation to be a better life need and a sign of social level. In this stage, the advertisers use both rational and irrational advertisements. The rational advertisement helps more in creating the needs of the advertised product while the irrational advertisement helps more in creating the wants.
3. Advertisement role in information search
A consumer starts searching for information once a problem is perceived. The consumer’s goal in this phase is to find all the required information to help in solving his problem. In this phase, advertisers focus on rational advertising to help consumers understand how the advertised products are serving their problems. Consumers in this stage are confused because of the many choices they see and comparing them to reach the best choice isn’t an easy task. Advertisers target consumers through the informational advertisement to create a shortcut road to specific products. Advertisements can take place on TV, Radio, newspapers, any printed material or social media channels.
4. Advertisement role in evaluating alternatives
Evaluating alternatives and information search is like a continuous cycle stage in which a consumer keeps going forward and back between them before making the purchase decision. During evaluating alternatives phase of decision making, the consumer doesn’t only compare how a product is satisfying his need against other products. Consumers usually have some other factors that take part in the comparing process, like a brand name or how the product would contribute to consumer social prominence. The psychological factors are usually attacked by irrational advertising.
Through the irrational advertising, an advertiser will be able to form different other values than the core real value of a product or a service. A Nike shoe can be just something that protects your leg and makes you walk comfortably or can be a shoe that makes you look stylish in people’s eyes. The previous example is showing the difference between the core value of a product and the irrational advertisement that a consumer can receive. The order winner in this phase is the advertiser who will manage to make his product to be superior over all the other products in the market. An advertiser role isn’t only to show that his product is superior but also to convert all negative associations to a product to be a positive point. The advertiser should work on decreasing the uncertainty that a consumer has toward a specific product. That all makes transformational advertising plays an important role in the evaluation of alternatives stage.
5. Advertisement role in purchase decision
In the decision-making phase, a consumer shall have a well-defined idea about what exactly the product he wants to buy. This stage can be interrupted if the consumer received negative feedback through social media or a friend who has experience with such a product. Advertisers focus on this stage more on rational advertising to bring the core value on the table to persuade and influence the consumer purchase decision. They can also use the irrational advertisement here to make the wants have a higher power over the needs. Both transformational and informational advertisements can be utilized in this stage based on the message that the advertiser wants to deliver.
6. Advertisement Role in Post Purchase
Post-purchase advertisement aims to build a relation and loyalty between a customer and a company. This advertisement can be just for promoting new relevant products, showing more information about a sold product to the consumer, or providing product care to the consumer. The advertisement role in this stage is also to collect feedback about a sold product and build a better communication channel, targeting message and customer experience. Informational advertising can be utilized in this stage to help in promoting new products or customer service. The transformational advertising can help in keeping the consumers loyal for a longer time to the product they bought and appeal them more to it.
J. Examples Of Advertisements
Burger king has one of the most exciting advertising examples. This company released a time-lapse video to showcase its signature burger rotting over 34 days to prove it contains no artificial preservatives.
The idea of video was targeted at its long-time competitor, McDonald’s, and the perception that its hamburgers have an excessive amount of preservatives.
Is There Anything You Can Learn from This advertisement Example
Creativity, risk, and being comical are not always enough. Sometimes you should dare to target your competitors smartly and give your audience a good reason to opt for you.
2. Volkswagen: Think Small
In 1960, an exceptional advertising and public relations firm was founded by Doyle Dane & Bernbach (DDB), which had one of the most successful ad campaigns of the twentieth century, as stated by Ad Age.
Among all ad campaign examples, the Think Small campaign focused on being modest, honest, and self-deprecating.
The biggest challenge in their campaign was to change the mind of their target audience, who believed the only superb vehicle was large. Volkswagen manufactured a car that did not exceed 72 miles per hour, but it then proceeded to swing where it hit several benefits such as a decreased need for repairs and lower gas consumption.
This famous ad campaign paired with the VW label appealed to the American audience.
Is There Anything You Can Learn from This advertisement Example
Do not hide your quality, your company, or your products and services. Consumers love authenticity and accessibility.
IV. ANALYSIS AND INTERPRETATION OF DATA
Analysis of data is a process of inspecting, cleansing, transforming and modelling data with the goal of discovering useful information, conclusions and supporting decision-making. Data analysis is a process for obtaining raw data and converting it into information useful for decision-making by users. Data are collected and analysed to answer questions, test hypothesis, or disprove theories.
Statistician john turkey defined data analysis in 1961 as: “Procedures for analysing data, techniques for interpreting the results of such procedures, ways of planning the gathering of data to make its analysis easier, more precise, or more accurate, and all the machinery and results of statistics which apply to analysing data.”
The following tools were used:
Percentage method refers to the specific kind which is used in making comparison between two or more series of data collected. Percentage is based on descriptive relationship. It compares the relative items. Through the use of percentage, the data are reduced in the form with base equal to 100%, which facilitate relative comparison.
Formula:
Percentage = (No of respondents/Total no of respondents) * 100
2. Rank Analysis
Ranking is a dating among a fixed of gadgets such that, for any objects, the primary is either “ranked higher than”, “ranked lower than”, or "ranked identical to" the second. In arithmetic, this is referred to as a weak order or total reorder of items. It is not necessarily a total order of objects due to the fact two unique objects may have the identical ranking. The ratings themselves are absolutely ordered. As an example, materials are absolutely reordered by using hardness, even as stages of hardness are absolutely ordered. If objects are the equal in rank it's far considered a tie. By lowering precise measures to a chain of ordinal numbers, ranking make it feasible to evaluate complex statistics in line with certain criteria. Therefore, for example, an internet seek engine may also rank the pages it finds consistent with an estimation of their relevance; making it possible for the user quick to choose the pages they're in all likelihood to want to look. Analysis of records acquired via rating typically calls for non-parametric facts.
3. Chi Square Analysis
The chi square analysis is commonly used for testing relationships between categorical variables. The null hypothesis of the chi-square test is that no relationship exists on the categorical variables in the population; they are independent. There are several important considerations when using the chi-square analysis to evaluate a crosstabulation. Because of how the chi-square value is calculated, it is extremely sensitive to sample size. This can be addressed by always using categorical variables with a limited number of categories.
Formula:
VI. Annexure
Web References [1] https://www.academia.edu/25917537/CHAPTER_TWO_LITERATURE_REVIEW [2] https://www.slideshare.net/hemanthcrpatna/a-project-report-on-advertising-effectiveness [3] https://medium.com/@ahmed-osman/advertisement-role-in-consumer-decision-making-process-3699b57e6ebf [4] https://eduprojecttopics.com/product/the-effect-of-advertising-on-customer-behaviour-and-retention/ [5] https://www.frontiersin.org/articles/10.3389/fpsyg.2022.919656/full Book References [1] Consumer Behaviour: Buying, Having, and Being\" by Michael R. Solomon. [2] \"Marketing Management\" by Philip Kotler and Kevin Lane Keller. [3] The Psychology of Advertising\" by Bob M. Fennis and Wolfgang Stroebe. [4] Advertising and Consumer Psychology\" by Margaret Hogg and Yvonne Samuel. [5] Advertising: Principles and Practice\" by Sandra Moriarty, Nancy Mitchell, and William D. Wells.
Copyright © 2023 Princy S. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Paper Id : IJRASET51188
Publish Date : 2023-04-28
ISSN : 2321-9653
Publisher Name : IJRASET
DOI Link : Click Here