Impact Of Tv Advertisement On Consumer Buying Behavior Marketing Essay

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In today’s competitive world it is very difficult for company’s to compete with each other. The fierce competition has given rise to various ways through which organizations can compete with each other. This rapid globalization has given a rise to a fast economic condition, has had a very signification affect on information and technology. Information reaches people in a split second and become aware of every company’s goods and services and the activities that are being rendered by them in order to promote or sale products or services. As a result the competition gets fiercer and sometimes this either creates challenges for some company’s and for some opportunities. It is here that companies decide of adopting and sometimes introducing effective marketing strategies in order to sell its goods or services, and those too must be able to attract the consumer to the product.

In order to attract the consumer’s some organizations introduce new products whereas some organizations advertise in order to attract the consumers. The later is considered to be one of the most influential ways of attracting consumers, since advertising not only creates awareness about the product among the consumers but also entertains them. Even though past studies have agreed that advertisement, especially TV advertisement, is the most effective media source since it attracts consumers attention. Advertisements affect the perceptions of the consumers and it can influence the consumer’s buying decisions. According to past research of Zuraida & Uswatun (2001), that there are three factors that make an advertisement effective; the influence of advertisement on consumer buying behavior, the communication process, and decision making.

Advertisement has been defined variously by a number of people. According to American Marketing Association advertising has been defined as a “form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.” It is a commercial transaction which is done in order to promote goods and services, and is directed towards a vast audience and is not for individuals only. The ultimate goal of advertisements is not to generate sales or profits; this can only be done once people are aware of the particular product. The overall goal of advertisement is to create the brand awareness among the consumers which in affect influences their buying behaviors. (BlacksAcademy)

http://www.blacksacademy.net/content/3961.html

It is the most vital goal of advertisement to influence or persuade the consumers to purchase a particular product over its competitors. According to Terence A. Shrimp, 1981, advertisement transfers affect to a brand. There are a various number of arguments that how can the effectiveness of advertisement be measured (Blair and Rosenberg 1994). Advertisements are a source of attaining the attention of the consumer; this is done in order to increase the publicity and hence allow the information to influence the brand awareness and as a result influences the decision making of consumers (Rossiter and Percy 1997). Further argued by Keller (1994) that advertisements build brand awareness, which in return strengthens the attitudes of the consumer towards the brand and their purchasing decisions (Dahlen & Lange, 2005). Dahlen (2001) concluded that the increase in advertisement exposures results in an increased brand awareness and also the attitudes of non-consumers. In this rapid globalization consumers are well aware of what they will see in an advertisement (Friestad and Wright 1994), this information not only persuade the particular behavior of consumer but also promotes the buying of the product (Robertson and Rossiter 1974; Wright 1986).

Purpose Statement

The purpose of this study is to determine the impact of TV Advertisement on the consumer buying behavior of Pakistan. For this purpose Quantitative Method was used, in which the impact of advertisement through brand awareness was seen on the consumer buying behavior of Pakistan. The main focus of this study was how brand awareness is created through TV advertising and its impact on the buying behavior of consumers, this impact is seen on the buying behaviors of consumers in electronic goods. Advertising comes in many forms; traditional and internet media. When we talk about traditional media it includes Television, radio, magazines, newspapers and direct response. As described by Wang C. et al., the main two purposes of advertisement is to build the brand and is also used as a direction, which directs the consumer about the products brand (Fernandez and Rosen, 2000; Lohse and Rosen, 2001). This study makes use of TV Advertisement and its impact on the consumer buying behavior of Pakistan by using questionnaire survey.

Significance of Study

This research will be significant in a number of ways:

Since this area of study is under research in Pakistan it will provide a basis for future research and will also help the policy makers in creating and implementing effective and attractive advertisements in order to attract the consumers and build their brand awareness.

This study will identify what consumers expect from advertisements and what sorts of advertisements appeal them the most.

Through Quantitative Research this still will bring value in the body of knowledge.

Theoretical Framework

Television has become the major source of communication in today’s world. It is the leading source of communicating to the people about everything. In Pakistan television is the only reachable media on which people heavily rely upon. According to Parveen 2009, in Pakistan the television coverage is 80 to 90%. Advertising not only is a major source of earning but also it plays a vital role in penetrating the different societal segments. The key pillar of a brand’s consumer based brand equity is considered to be brand awareness (Aaker, 1991). On the other hand it is argued that brand awareness is the most important phase in building a brand (Rossiter and Percy 1991). They argue that brand awareness is essential for the process of communication since it paves way for all other phases in the process (Rossiter and Percy 1987). Simply it can be exemplified that for a customer to purchase a product or brand it is important that they are first made aware of it. It is argued that until brand awareness has not been formed, brand attitudes cannot be formed and ultimately there will be no intention to buy (Rossiter & Percy 1987; Rossiter et al. 1991). Many researchers support the association between brand awareness and buyer behavior (Assael and Day, 1968; Hoyer, 1984; Nedungadi, 1990; Macdonald and Sharp, 2000). Further argued by Morden (1991) that advertising forms brand awareness of any product or service in the minds of the target and potential consumers so that they can build knowledge about the brand.

Model:

Consumer Buying Behavior

Brand Awareness

Advertisement

Research Objectives

Main Objective

The main objective of this study is:

To understand the impacts of advertisement on the consumer buying behaviors

Sub Objectives

The sub objectives of this study are:

To examine the impact of TV advertisement on consumer buying behavior

To achieve the advertising objectives of a good advertisement

To examine the influence of advertisements on changing the consumer’s perceptions

Research Questions and Hypothesis

Main Research Question

“What is the Impact of TV Advertisement on Consumer Buying Behavior?”

Hypothesis

H1 = There is a relationship between TV advertisement and brand awareness

H2 = There is relationship between brand awareness and consumer buying behavior

Chapter 2

Literature Review

Introduction

Advertisement has been defined variously by a number of people. According to American Marketing Association advertising has been defined as a “form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.” It is a commercial transaction which is done in order to promote goods and services, and is directed towards a vast audience and is not for individuals only. The ultimate goal of advertisements is not to generate sales or profits; this can only be done once people are aware of the particular product. The overall goal of advertisement is to create the brand awareness among the consumers which in affect influences their buying behaviors (Blacks Academy).

It is the most vital goal of advertisement to influence or persuade the consumers to purchase a particular product over its competitors. According to Terence A. Shrimp, 1981, advertisement transfers affect to a brand. There are a various number of arguments that how can the effectiveness of advertisement be measured (Blair and Rosenberg 1994). Advertisements are a source of attaining the attention of the consumer; this is done in order to increase the publicity and hence allow the information to influence the brand awareness and as a result influences the decision making of consumers (Rossiter and Percy 1997). Further argued by Keller (1994) that advertisements build brand awareness, which in return strengthens the attitudes of the consumer towards the brand and their purchasing decisions (Dahlen & Lange, 2005). Dahlen (2001) concluded that the increase in advertisement exposures results in an increased brand awareness and also the attitudes of non-consumers. In this rapid globalization consumers are well aware of what they will see in an advertisement (Friestad and Wright 1994), this information not only persuade the particular behavior of consumer but also promotes the buying of the product (Robertson and Rossiter 1974; Wright 1986).

In Pakistan television is the only reachable media on which people heavily rely upon. According to Parveen 2009, in Pakistan the television is widely spread and 80 to 90% of the population watches television. The key pillar of a brand’s consumer based brand equity is considered to be brand awareness (Aaker, 1991). If brand awareness is not built, then there cannot be any effective communication. Simply it can be exemplified that for a customer to purchase a product or brand it is important that they are first made aware of it. It is argued that until brand awareness has not been formed, brand attitudes cannot be formed and ultimately there will be no intention to buy. Many researchers support the association between brand awareness and buyer behavior (Assael and Day, 1968; Macdonald and Sharp, 2000).

In today’s competitive world it is very difficult for company’s to compete with each other. The fierce competition has given rise to various ways through which organizations can compete with each other. Information reaches people in a split second and people become aware of every company’s goods and services and the activities that are being rendered by them in order to promote or sale products or services. As a result the competition gets fiercer. It is here that companies decide of adopting and sometimes introducing effective marketing strategies in order to sell its goods or services, and those too must be able to attract the consumer to the product.

In order to attract the consumer’s some organizations introduce new products whereas some organizations advertise in order to attract the consumers. The later is considered to be one of the most influential ways of attracting consumers, since advertising not only creates awareness about the product among the consumers but also gives them information. Even though past studies have agreed that advertisement, especially TV advertisement, is the most effective source of promotion since it attracts consumers attention. Advertisements affect the perceptions of the consumers and it can influence the consumer’s buying decisions. According to past research of Zuraida & Uswatun (2001), that there are three factors that make an advertisement effective; the influence of advertisement on consumer buying behavior, the communication process, and decision making.

Literature Flow Diagram

Advertisement Introduction

Conclusion

Brand Awareness

TV Advertisement

It is highly argued that advertisements are the main source of providing information to the consumers in order to make them aware of any goods and services reality and its advantages, and this ultimately results in convincing the consumers to purchase them (MacKenzie, 2004). Advertisement has been playing a very vital role in order to attract the consumers for various products, goods or services for organizations. The different media available to advertise has increased over the years and such media leaves a strong impact on the consumers. The 21st Century has come with a dawn of increased advertisements in all the fields of life. It is the most effective way of delivering most of the information. The various kinds of advertisements are:

Print Advertisement

Outdoor

Broadcasting

Celebrity

Print Advertisements include advertising in newspapers, magazines, etc. It has been used for many years now and is of low cost as well. It can be used by anyone after paying a specific amount of money according to the space used by the sponsor.

Outdoor advertisements include the day to day billboards that we see daily. They can be seen on highways, shopping areas, or along general roads in Pakistan. They are costly as compared to print media. Outdoor could also include different sponsorship events by companies. For example Pepsi sponsors the Pakistani Cricket Team for its matches, this is an outdoor activity for Pepsi and a huge amount has to be paid for it.

As the term describes it, broadcasting media includes television, internet, etc. Television and the internet have been very popular amongst all the media types and have a larger impact on the consumers as compared to radio advertising. Through television and internet people can interact, but radio is quite different and difficult since there are no visual elements involved.

Celebrity advertisements include the use of spokesperson or a celebrity as an endorser for a particular brand. For example in Pakistan Wasim Akram is the spokesperson for Accu Check, an instrument that checks the sugar level of diabetic patients. Since Wasim Akram himself is diabetic people can easily rely on what he says in the advertisements and hence it impacts their buying behaviors.

The influence of television is however very vital since it is a means of communication in an audio and visual manner. A television is the most effective way of communicating ideas to a wide spread audience. The three fold purpose of a television advertisement is either the introduction of a new product, supporting the product familiarity or just convincing the audience to purchase a particular product. Since the past few years, advertisements have played a vital role in marketing strategies and have been a centre of attention among a large number of people throughout the world. Advertisements create sentiments, emotions and sometimes convey hidden yet important messages. It has been influencing the lives of millions of people and is found in our daily lives. Through attractive measures Television advertisements are the most influential forms of media since. The strongest impact of advertisements has been seen on television as compared to print media or the radio. According to a study conducted by Rana (1995), it revealed that the impact of television advertisements was the greatest amongst all the other forms of media, and also that in television advertisements the purchase behavior were the greatest.

According to Kotler (2002) advertising is a set of activities that present and promote ideas, goods, or services, is non-personal through an identified sponsor. Through advertisement a relationship is built between the manufacturer/produce and the ultimate consumers. Advertisement does not directly impact the consumer’s buying behaviors but helps in creating awareness among the consumers. Advertisements are created in order to accomplish the purpose of marketers; communicating the product to the consumers. Therefore an advertisement must be able to influence the consumer’s buying decision. There are several objectives of advertising campaigns. A good advertising campaign must be able to communicate the information to the consumers in such a way that the awareness about the product is increased hence increasing their buying behaviors towards a particular product. The several objectives of a good advertising campaign are presented in the table below.

To Inform

Informing the market of new goods and services

New usage of products

Informing about any price changes

Persuasion

Building of brand preferences

Changing buyer perceptions of product attributes

Persuading buyers to purchase

Remind

Maintaining top of the mind brand awareness

Keeping the product in the mind of consumers during off season

Adapted from Kotler et al. 2002

The above table shows the various objectives that advertisements try to achieve; which have been divided according to the purposes that include informing, persuading and reminding. According to Kotler et al. 2002 when a new category of product has to be introduced, more and more information is given through advertisements in order to create a demand among the consumers, this advertisement in made more persuasive when the competition rises. And in the end consumers are frequently reminded about the product so that it does not fade away in the mind of the consumers (Kotler et al. 2002)

Brand Awareness and Consumer Buying Behavior

According to Aaker, 1996 brand awareness is the ability of a consumer to recognize and recall a brand in various situations. Brand awareness includes brand recall and recognition, brand recall is the ability of a consumer to recall a brand after seeing it in a category, whereas brand recognition is the ability of the consumer to identify a brand when a cue is given to them. According to Keller (1993), brand awareness influences the purchase decisions through brand associations, positive images, and marketing. Further argued by Keller, 1993; Macdonald & Sharp, 2000 that consumers purchase products that are known to them and are familiar with the product, this is possible through brand awareness which influences the purchase intentions. Percy & Rossiter (1992) showed agreement that brand awareness helps the consumers in recognizing the particular product and hence influencing the purchase decisions.

Brand awareness is one of the most vital factors that influence the consumer’s purchase intentions which may also lead to influence the consumer’s purchase decision. According to Dodds et al., 1991; Grewal et al., 1998, a product which has a higher level of brand awareness is more likely to get consumer’s higher preference. Further argued by Aaker and Keller (1990) that a product which has a high brand awareness and good brand image easily promotes brand loyalty and the more high brand awareness is, higher the brand trust and purchase intentions of the consumer.

Advertisement and Consumer Buying Behavior

Advertisement is a very important information provider which creates a better market and positive image amongst the consumers so that they can easily make a decision according to their needs and demands (Norris, 1984). Further argued by Polly and Mittal (1993) that product information which is communicated through advertisements play an important role in altering the attitudes and behaviors of the consumers towards advertisement as well as the buying behaviors of the consumers once their needs have been met after the information of the particular product or service has been communicated through Television advertisement (O’Donohoe, 1995). The decision process of consumer is divided into five steps:

Identification of Problem

Searching for Information

Deciding between various choices available

Making a decision, and then

Making the final purchase

It is however not necessary that consumers go through these steps every time, they are mostly influenced through the various television advertisements (Loudon & Bitta, 1994; Tellis, 1987). Past research on advertisement has shown that characters are the main influencers on consumer behavior (Engel et al., 1986), but the roles of the consumer (Sheth & Mittal, 1999) and involvements (Mowen & Minor, 1998; Clark, Brock & Stewart, 1994) are the main influencers on the buying behaviors of consumers. It is the most vital objective of any advertisement to communicate to the target audience and to bring about an impact on the awareness of consumers, their feelings and hence their buying behaviors. Companies all around the world are spending millions in order to communicate properly to the consumers. According to Arens 1996, consumers go through two stages while wanting to purchase goods or services. These include mental as well as emotional stage, and ultimately this satisfies the demand of the consumers. Here it is worth mentioning that there are various numbers of factors that impact the consumer behaviors. These may be internal and external factors. The consumer’s purchase decisions are influenced by a number of reasons and such variables are outside the control of advertisers or marketers; these factors maybe cultural, social, personal, and psychological which ultimately influence the buying behaviors of consumers.

Cultural Factors:

Culture is defined as the values, perceptions, wants and behaviors that prevail in a society (Ibid), and a culture ultimately develops different needs and behaviors of people. It is important to understand that every culture has its own influence on the way consumers behave while purchasing a certain product or service. And this may also differ from one country to another.

Personal Factors:

Personality traits differ from person to person, hence the personal characteristics also influence the perceptions of the consumers while purchasing goods and services. These include age, income, lifestyles etc which influence the consumer’s buying behavior.

Social Factors:

Another factor that influences the buying behavior of consumers is the social factor. These social factors relate to the society we live in, including family, social groups, which are influencing the behaviors of people. According to Kotler et al. 2005 a group which has a direct impact on any individual is the membership groups in which people become a part of a specific group. Such groups have a significant impact on the behaviors of individuals.

Psychological Factors:

Psychological factors include the factors in which an individuals beliefs and perceptions influence their behaviors. Beliefs and perceptions can be developed through a number of variables; one of the most commonly used is through advertisement. How advertisements create consumers beliefs and perceptions about any product. It is therefore an important factor which impacts the behaviors of consumers. This again differs from person to person; if a person is satisfied he or she is expected to take any particular action according to the satisfaction level. And some may do nothing about it at all. Such new changes and experiences are formed in an individual’s behavior results in the consumer’s belief and feelings which as a result influence their buying behaviors (Armstrong et al. 2005).

Brand Awareness:

Brand awareness in one of the most vital tools which flows information of a product to the consumers so that they are able of identifying products and also giving an edge of sustainable competitive advantage to companies (Aaker, 2005). Further argued by Aaker, 2005 that this awareness has a significant impact on the purchase/buying decisions of consumers once they have become familiar with the product.

Chapter 3

Methodology

This study makes use of Quantitative Research in which questionnaire survey method has been used. The questionnaires were completed by the respondents, and it consisted of close ended questions. The scale was used in which ratings were done from Strongly Agree (SA) to Strongly Disagree (SDA). The respondents were the regular Television viewers of Lahore. Sampling was done randomly and the results were generated through SPSS 16. Since Quantitative Research has been used, the paradigm of this study is Positivism. The validity and reliability measures were taken through CronBach Alpha values which have been discussed below. The site selected for this study was Lahore city in which random sampling was adopting in order to collect the data. 100 respondents were asked for the data collection who filled the questionnaires.

Validity and Reliability:

Reliability means that the result is applicable whereas validity means that the measurement are accurate and whether they are measuring what they intend to measure.

In reliability checked the results through statistical procedure of internal consistency. To increase the reliability of questionnaire a pilot test was made from 5 respondents. Errors and ambiguities were removed during this process. The reliability was checked through Cronbach Aplha and the values have been provided below

TV Advertisement

Reliability Statistics

Cronbach’s Alpha

N of Items

.807

9

Brand Awareness

Reliability Statistics

Cronbach’s Alpha

N of Items

.748

6

Consumer Buying Behavior

Reliability Statistics

Cronbach’s Alpha

N of Items

.775

7

Chapter 4

4.0 Analysis and Results

This chapter mentions the usage of SPSS software through which different tests were applied and results were generated. This also includes the interpretations of the tests. SPSS which stands for “Statistical Procedure for Social Sciences” is software which deals with Quantitative Research analysis and is an interactive software.

4.0.1 Descriptive Analysis and Results

Table 1

tvadvertisment

consumerbayingbehaviour

brandawaerness

N

Valid

100

100

100

Missing

0

0

0

Mean

3.7312

3.7000

3.8617

Median

3.7500

3.8333

4.0000

Std. Deviation

.57389

.61637

.46364

Minimum

2.38

2.33

3.00

Maximum

4.88

5.00

5.00

Percentiles

25

3.3750

3.3333

3.5417

50

3.7500

3.8333

4.0000

75

4.0938

4.1667

4.1667

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.843a

.710

.704

.33530

a. Predictors: (Constant), brandawaerness, tvadvertisment

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

-.112

.300

-.373

.710

tvadvertisment

.824

.066

.767

12.467

.000

brandawaerness

.191

.082

.144

2.339

.021

a. Dependent Variable: consumerbayingbehaviour

Summary

Chapter 5

Discussion Conclusion and Recommendations

The figure 4.1 shows the scatter plot which shows that customer buying behavior and advertising are correlated over the period of time. According to the graphs, there is the strong relationship. This present research study has a strong relation

Advertising has become important factors which influence the customer buying behavior. After this research we analysis that the advertising is one of the major factor which directly influence the buying behavior in the customer of FMCG sector of Pakistan. In this research the dependent variable is customer buying behavior and independent variables are advertising and three supporting variables are celebrity endorsement, positioning and medial channels. In this research we analysis that three supporting variables add value making good advertising message to their target audience. A Multinational company’s decision to expand its business to another country was mostly based on high efficiency, low production cost, availability of strategic raw material and emerging market. The economic benefits of advertising were wide-ranging; it opened new avenues of knowledge, transfer of technology, training of manpower, market networking and many other spillover effects and externalities in the host countries. Numbers of the developing countries including Pakistan have taken effective policies and aggressively pushing economic reforms to attract customers and change the perception of their customer. However, the local conditions can restrict the potential benefits produced by the marketer despite of instrumental policies.

One more problem is assessing the impact of advertising on customer buying behavior is that advertising is often under estimate the performance of advertising activities of organization with other growth promoting factors and the changes of customer buying behavior. Some studies have pointed to the role of knowledge spillover, another factor likely to be associated with advertising, across countries and overtime.

Advertising is one of the most successful ingredients to attract customer to their products and brands. Many theoretical and empirical research studies were conducted at national and international level related to impact of advertising on customer buying behavior and most of them were reviewed in the literature. This research study empirically analyzed impacts of advertising on customer buying behavior Pakistan FMCG sector. This study applied the correlation and regression to check the stationary of the data used in the analysis. The correlation coefficient r is a measure of the linear relationship between two attributes or columns of data was used to analyze the long run relationship among the variables techniques to estimates the advertising and other explanatory variables that affect the dependent variables. The results of the import model showed that advertising has positive relation with customer buying behavior.

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