A STUDY ON “IMPACT OF TELEVISION ADVERTISING ON

CONSUMER BEHAVIOUR IN COSMETIC PRODUCT”

(WITH REFERENCE TO SUNSILK SHAMPOO)

Submitted By:

MUKTA SEDHAI

SHANKER DEV CAMPUS

T.U. Registration No.: 7-1-274-64-97

Campus Roll No.: 335/059

A Thesis Submitted to:

Office of the Dean

Faculty of Management

Tribhuvan University

In partial fulfillment of the requirement for the degree of

Master of Business Studies (M.B.S.)

Kathmandu, Nepal

December, 2009
 DECLARATION

I hereby declare that the work reported in this Thesis entitled “Impact of Television

Advertising on Consumer Behaviour in Cosmetic Product” Submitted to Shanker Dev

Campus, Faculty of Management, Tribhuvan University is my original work done in

the form of partial fulfillment of the requirement for the Master’s Degree in Business

Study (M.B.S.) under the supervision of Asso.prof. Laxman Mohan Joshi of

Shanker Dev Campus.

……………………………
Mukta Sedhai

Researcher

TU Registration no:7-1-274-64-97

Campus Roll No: 335/059

 ACKNOWLEDGEMENT

I express my sincere gratitude to all the authors and learned personalities, whose writings
have been cited in this study. I also express my sincere gratitude to those authors whose
writings though are not cited but helped and inspired me in making my vision clear and
reaching on conclusion.

I extend my deep sense of indebtedness to my respected supervisors Mr. LaxmanMohan

Joshi for his precious guidelines, inspiration and suggestion thoroughly during the period of
this research and to Mr. Ruchila Pandey (Assistant Campus Chief, Shanker Dev Campus) for
her full support and cordination.Without their valuable insight, I would not think of
accomplishment of this Thesis. I acknowledge my profound gratitude to the personnel of
Sunsilk Shampoo for the cooperation shown and providing necessary data.

I want to give thanks for the staff members of T.U. Central Library, Shanker Dev Campus
Library who provided the reference and reading materials during the period of research.

Finally, I would like to express my sincere gratitude to my husband, my teacher and to all my
family members, all my friends for their assistance, timely encouragement in every step.

Thank you.

MUKTA SEDHAI
 TABLE OF CONTENTS

PAGE NO.

CHAPTER I: INTRODUCTION 1-6

1.1 Background of the study 1

1.2 Statement of the Problem 3

1.3 Objectives of the Study 4

1.4 Limitations of the Study 4

1.5 Relevance of the Study 5

1.6 Organization of the Study 5

CHAPTER-TWO-REVIEW OF LITERATURE 7-35

2.1 Introduction 7

2.2 Theoretical Review 7

2.2.1 History of Advertising 7

2.2.2 Meaning of advertising 10

2.2.3 Specific Reasons for Advertising 12

2.2.4 Types of Advertising 14

2.2.5 Methods of advertising 15

2.2.5.1 Print Media of advertising 16

2.2.5.2 Radio advertising 22

2.2.5.3 Television advertising 24

2.2.6 Advertising as a part of marketing activities 28

 2.2.7 Advertising and personal selling 29
2.2.8 Advertising and sales promotion 30
2.2.9 Advertising and Publicity 31

2.3 Review of previous study 32

CHAPTER- THREE-RESEARCH METHODOLOGY 35-38

3.1 Research Design 36

3.2 Population and Sample 36

3.3 Data Collection Source 36

3.4 Analysis Techniques 37

3.5 Data processing and Tabulation 37

CHAPTER-FOUR-PRESENTATION AND ANALYSIS OF DATA 39-63

4.1 Age-wise consumers' preference on TV advertisement 39

4. 2 Literacy-wise consumers' preference on TV advertisement 41

4. 3 Preference of advertisements according to gender (Sex) 42

4.4 Consumers' television watching habit 44

4. 5 Age-wise consumers' reaction to the television advertisements 45

4.6 Educational-wise reaction to the TV advertisement 47

4.7 Gender wise reaction to the advertisement 49

4.8 Effect of advertisement on consumers' purchasing decisions 50

4.9 Consumers preferences to the product 51

4.10 Consumers' preferences to the means of advertisement 51

4.11 Impact of repeated advertisement to attract the consumers' attention 53

4.12 Consumers response to the adequacy of advertisement 54

4.13 Consumers' preference to the product having same price and quality 54

4.14 Impact of advertisement on customer 55

4.15 Role of Advertisements to make the purchase decision 56

4.16 Effectiveness of the advertisement of cosmetic product 57

4.17 Effectiveness of the advertisement of Vatika Shampoo 57

4.18 Factors influence to buy the product (Vatika Shampoo) 58

CHAPTER-FIVESUMMARY, CONCLUSION & RECOMMENDATIONS 64-66

5.1 Summary 63
5.2 Conclusion 64

5.3 Recommendations 65

BIBLIOGRAPHY

APPENDIX
 LIST OF TABLES

TABLE NO PAGE NO

Table-3.1 Gender-wise Sample Collection 37

Table-3.2 Educational wise sample collection 38
Table-4.1 Age-wise consumers' preference on TV advertisement 39
Table-4.2 Literacy-wise consumers' preference on TV advertisement 41
Table-4.3 Preference of advertisements according to gender (Sex) 42
Table- 4. 4 Consumers' television watching habits 44
Table-4.5 Age-wise consumers' reaction to the television advertisements 46
Table-4.6 Educational-wise reaction to the TV advertisement 47
Table-4.7 Gender wise reaction to the advertisement 49
Table-4.8 Effect of advertisement on consumers' purchasing decisions 50
Table-4.9 Consumers' preferences to the product 51
Table-4.10 Consumers' preferences to the means of advertisement 52
Table-4.11 Impact of repeated advertisement to attract the consumers' attention 53
Table 4.12 Consumer’s response to the adequacy of advertisement 54
Table-4.13 Consumers' preference to the product having same price and quality 55
Table -4.14 Impact of advertisement on customers 55
Table-4.15 Role of advertisement to make the purchase decision 56
Table-4.16 Effectiveness of the advertisement of cosmetic product 57
Table- 4.17 Effectiveness of the advertisement of Vatika Shampoo 57
Table- 4.18 Factors influence to buy the product (Vatika Shampoo) 58
 LIST OF FIGURES

FIGURE NO: PAGE NO:

Figure 4.1 Preference on TV advertisement 40

Figure 4.2 Literacy-wise consumers' preference on TV advertisement 42
Figure 4.3 Preference of advertisements according to gender (Male) 43
Figure 4.4 Preference of advertisements according to gender (Female) 44
Figure 4.5 Consumers' television watching habits 45
Figure 4.6 Age-wise consumers' reaction to the television advertisements 47
Figure 4.7 Educational-wise reaction to the TV advertisement 48
Figure 4.8 Gender wise reaction to the advertisement 50
Figure 4.9 Consumers' preferences to the means of advertisement 53
 ABBREVIATION

& : And

A.D. : Anno Domini

B.S. : Bikam Sambat

CBS : Central Burro of Statistics

GON : Government of Nepal

i.e, : That is

M.B.S : Master's of Business Studies

NTV : Nepal Television

% : Percentage

PSAs : Public Service ads.

S.L.C : School Leaving Certificate

T.U : Tribhuvan University

9
 CHAPTER-ONE
INTRODUCTION

1.1 Background of the study

"Many people use advertising at some time in their life. Some may use it privately while others
may use in business. And many people respond to advertisements, they enjoy the choices
available "to them in every sphere of life" (Kotler; 1994:35). It is one of the major tools that
companies use to persuade target buyers and publics to buy their products or services. The
main purpose of advertising is to persuade the consumer to buy the products or services. The
other purposes can be to inform the consumers about the products availability features, uses
etc. Different people have defined advertising in many ways; however they all mean nearly the
same thing. Some of the popular definitions, of advertising are as follows:
"Advertising is any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor"(Kotler; 2000:42).

"Advertising is the means by which we make known what we have to sell or what we want to
buy" (Jelkins; 1985:65).

The advertisers include not only business firms but also museums, professionals, and social
organizations that advertise their products or services. The term "Advertisement" is very
popular in today's world. All the countries of the world use it. We can see it everywhere, i.e.,
on the television, on the matchbox, in the newspaper, magazines, on the trash containers, on
the vehicles even in the sky and so on. We can also hear it on the radio. So the advertisers have
different choices of media to advertise their product, service or an idea. The advertiser needs to
choose the medium which best reach the customers. In this respect, the study of the media
impact on the media impact on consumer is the must.

Advertising is used by different organizations in different ways. A large company set up its
own .advertising department whose job is to develop the total budget, help develop advertising
strategy, select media, approve advertising agency. However, most companies use an outside

10
advertising agency to help them create advertising campaigns and to select and purchase
media.

Many important decisions have to be" made before undertaking the advertising program. It is
certainly one of the most important complex decision areas facing business executives. Major
decision areas in developing advertising program include setting the advertising objectives,
deciding on the advertising message, deciding on the media and evaluating advertising
effectiveness.

There are various types of advertising media. Media are the instruments or the way through
which the advertisement messages-are put before the public. The most brilliant original
advertising ideas will be wasted if they are not supply through the right media to the right
readers, viewers, listeners or passers-by.

Among different types of media, television medium plays a vital rote. The importance of
television advertising is increasing day by day. Television gives information to a large number
of people than any other medium of advertising. Due (to the satellite facility, television
programs are viewed internationally. In today's glamorous world, we can show all the aspects
of products and services through television advertising. It is always said that people believe in
things until they hear and see. This can be possible through television advertising only.

Television advertising first came into prominence in the 1950s in America. At first, the
popularity of television was hindered by the expensive cost of TV sets and lack of
programmers. But its impact was so deep that within a decade it was spread over

The world. Nepal is not an exception. In Nepal, television was first commissioned in 2041 B.S.
in the name of Nepal television. It started to telecast the program in 2042 B.S. while the
commercial telecasting started only in 2044.

Television advertising has many advantages. Firstly, it combines sight, sound and motion. It is
quite appealing to the senses. It arouses high attention and it has high reach. It has certain
disadvantages also namely high absolute cost; high clutter; fleeting exposure and less audience
selectivity. However, we cannot deny the fact that television enjoyed the dominant position in

11
the media mix.

1.2 Statement of the Problem

Advertising is one of the most important tools that companies use to persuade target buyers to
buy their products or services. There are many special and specific reasons for advertising. The
reasons can be to announce a new product or service or an idea to expand the market to new
buyers., to announce a modification, to announce a price change, to announce a new pack, to
make a special offer etc. Therefore, the advertising plays a crucial role in marketing. Today
due to the importance of advertising many companies are using advertising as their integral
part. The role of advertising is to shift the products demand curve upward. For this, the
effectiveness of advertisement is one of the major areas advertiser needs to consider. Deciding
on the media is the crucial task the advertiser needs to undertake for the success of any
advertisements. Among various types of media, television enjoys the dominant position.
Advertisement can reach to various countries at a time through television. It has world wide
approach.

In today's world, the popularity of television is increasing day by day. It is very useful for the
advertiser to know the popularity of television among different people. Different types of
advertisement through television appeal to the different customer differently. Careful analysis
should be done in this regard for the success of any advertisement campaign. This is lacking in
Nepal. Very few analysis and research is Conducted regarding this. Hence, the main objective
of this thesis is to provide useful information regarding the effectiveness of television
advertising to different group of people particularly in urban areas. This survey will try to solve
the questions like how popular the television advertisement is among different people in urban
areas. Is it popular among youngsters or middle-aged, or is it popular among older people?
These all findings can be more useful for the advertiser while selecting among media according
to their product types.

There are various types of television advertisement. It may be presented in the form of slice of
life, lifestyle, fantasy, mood or image, musical, personality symbol, technical expertise,

12
scientific evidence, testimonial evidence etc. Different people prefer different types of
television advertisements. The selection of the target market and the. Product's nature plays a
significant impact on choosing the media. The boundaries within which, the product are
intended to be sold sets limitation on choice of media. Different people show different attitudes
toward the same message aired, telecast and published. In Nepal many' advertisers fails to give
due importance in this regard. This leads to the failure of advertisement in generating due
positive response from consumers. Thus, the understanding of the impact of any media on
consumer behavior is extremely important for any advertiser. The Nepalese business houses
can generate many ideas in the field of marketing area through this type of survey. In addition,
the survey like this will be very helpful for the advertiser for the success of the television
advertisement. From this context, in a developing country like Nepal, this type of study is
must.

1.3 Objectives of the Study

The specific objective of this research work is to analyze the general impact of television
advertising on consumer behavior. However, the basic objectives of the study can be outlined
as below:

 To examine the consumers preferences on television advertisement.

 To identify the consumers reactions to the television advertisement.
 To examine the popularity of the television advertisement.
 To analysis the effectiveness of the advertisements of cosmetic products.
 To examine the factors that influence to buy the cosmetic product.

1.4 Limitations of the Study

This research work is totally based on the analysis of primary sources of data. The major
limitations of the study are as follows:

 The study covers only the television advertisement for the most advertised products like
cosmetics.
 The study is limited to a survey of respondents and interview of people within the urban

13
 areas of Katmandu.
 Random sampling technique will be used to select the respondents for the purpose of
interview.

1.5 Relevance of the Study

Advertising has proved to be effective (less costly) source of information than other sources. In
today's modern business world, the need of advertising is indispensable. Every stage of product
life cycle needs advertising, volume of which may be low and high depending upon the natures
and stages. Advertising increases the demand for the products and services. It helps in the
introduction of mass production, installation of up-to-date machinery, and consequent
reduction of cost of article. It is beneficial not only to the producer and retailer but also to the
consumer.

1.6 Organization of the Study

There are five chapters in this study, which are introduction, review of literature, research
Methodology, data analyses and presentation and summary, conclusion and recommendation.

Chapter I: Introduction: - The first chapter includes various aspects of present study like
background of the study, statement of the problem, objective of the study, need for the study
and limitations of the study.

Chapter II: Review of Literature: In the second chapter, the conceptual thoughts and related
study with capital structures are discussed as far as possible. Moreover it includes capital
structures with viewpoints of different personalities and critics.

Chapter III: Research Methodology: - The third chapter deals with the research
methodology which consists of research design, sources of data and information as well as
different analytical tools used in the study.

14
Chapter IV: Presentation and Analysis of Data: - The forth chapter introduces the main
aspect of the study. It deals with data collection procedure and presentation of data with
different statistical and financial tools, and findings of the study.

Chapter V: Summary, Conclusion and Recommendations: - The fifth chapter presents

summary, conclusion and recommendations.

15
 CHAPTER-TWO
REVIEW OF LITERATURE

2.1 Introduction
For all types of studies, review of literature is essential, which helps to find out what research
studies have been conducted in one's chosen field of study and what remains to do. In fact,
review of literature begins with a search for a suitable topic and continues throughout the
duration of the research work. It is a path to find out what other research in this area has
uncovered. It is the process of locating, obtaining, reading and evaluating the research
literature in the area of the student's interest. It is also a means to avoid investing problems that
are already been positively answered. The main reason for a full review of research in past is to
know the outcomes of those investigations in areas where similar concepts and methodologies
had used successfully. This chapter is basically divided in two part, one is conceptual review
and the other is review of relate studies.

Review of literature means reviewing research studies or other, relevant propositions in the
related area of the study so that all the past studies, their conclusions and deficiencies may be
know and further research can be conducted. The most important reason of literature review is
to learn not to collect. It helps to know many things to researcher such as, what research has
been done in the subject? What theories have been developed? Methods, approaches used by
other researchers, area of agreement or disagreement etc.

2.2 Theoretical Review

2.2.1 History of Advertising
Archeologists have found evidence of advertising dating back to the 3000s BC; among the
Babylonians. The outdoor display, usually an eye-catching sign painted on the wall of a
building was one of the first known methods of advertising. Many such signs were uncovered
by archeologists, notably in the ruins of ancient Rome and Pompeii. An outdoor advertisement
excavated in Rome offers property for rent, and one found painted on a wall in Pompeii calls
the attention of travelers to a tavern situated in another town.

16
"Advertising by 'word' of mouth is probably the earliest form of advertising, because oral skills
were developed before reading and writing. Advertising was given the commercial status the
day man entered into the process of exchange"(Agrawal; 2000:35).

Word of mouth praise of products was the way of advertising used in medieval times. This
gives rise to a simple but effective form of advertising, the use of so-called town criers. The
criers were citizens who read public notices aloud. Merchants also employed these town criers
to shout the praises of their wares. Even in Nepal, during Rana Regime, town criers walked
through the streets announcing the opening and closure of gambling periods during the Laxmi
Puja and other occasions. This form of advertising was called 'Jhyali Pitne' in Nepali. 'Jhyali
means a certain type of an instrument that produces music and "pitne" means 'to beat'. This is
so called because the town crier beat the "Jhyali" while making announcement or informing the
public. The tow 'n criers were forerunners of the modern announcer who delivers radio and
television commercials.

Although graphic forms of advertising appeared early in history, printed advertising made little
headway until the invention of the movable type printing press by German printer Johannes
Guttenberg about 1450. This invention made this mass distribution of posters and circulars
possible. The first advertisement in English appeared in 1472 in the form of a handbill
announcing a prayer book for sale. Two hundred years later, the first newspaper ad was
published offering a reward for the return of 12 stolen horses.

Another major technological breakthrough in the field of advertising was the invention of
photography in the late 1880s. Prior to this invention, advertisements were illustrated only by
drawings. Photography adds credibility to advertisements as it shows products as an artist
visualizes them.

"During the 16th century, newspapers were the largest among the prints, and these newspapers
were in the form of newsletters. The first newsletter was started in 1622 in England. Latter half
of the 16th century witnessed newspapers in the form of news books and by the middle of the

17
17th century; there were special advertising periodicals. By 1675, newspaper published
excellent news books. By the end of 17th century, newspapers were well established in England
undertaking advertising on a regular basis" (Karl; 1999:42).

Advertising agencies initially focused on print. Then, a new powerful advertising medium,
radio started on Nov 2, 1920 in Pittsburgh, Pennsylvania. The introduction of this broadcasting
medium created new opportunities and by the end of the 1920s, advertising had established
itself in radio to such an extent that advertisers were producing many of their own
programmers. The early 1930s produced dozens of radio dramatic series in America that were
known. As sponsored by soap companies.

Though television had been introduced in 1940, it was not immediately embraced because of
the high cost of TV sets and the lack of programming. In the 1950s, the American economy
soared which lead to the rise in the sale of TV sets and the advertising that paid for the popular
new shows. Soon TV becomes the largest advertising medium that surpassed radio as an
advertising medium.

The tone of the advertising is also changing. No longer does advertising simply present the
product benefit. Instead it creates a product image.

The changes in advertising correspond with social, economic and political changes of the
country. There are so many advertisements of products and services on television and in the
popular press today which were not there only a few years ago. We can see many
advertisements of domestic airlines -like Necon air, Buddha air etc on Nepal Television. There
are many advertisements of cosmetic products, noodles etc. in mass communication media like
newspapers, radio etc. Before, people were not bombarded with as many advertisements as
seen today. Never before more have been so many excellent advertisements about offering
prizes by noodles like Wai-Wai, Mayos etc.

The face of Nepal has changed and people are more sensitive about the particular types of
products and services, which best satisfy their needs. Life styles are changing. Advertisements

18
help people in their buying decision. Since people are faced with many products that satisfy
their particular need, decision making process has-become complicated. In this regard,
advertisements come to their rescue. People have started to take decision on the basis of
advertisements they preferred. For instance, some teenagers choose the cosmetic that is well
advertised from among other cosmetics which are not much advertised. The importance of
advertising is growing day by day and so does the field of advertising. No one can predict what
new forms of advertising may take in future. The most recent advanced form is advertising
through internet i.e., by creating different websites in the internet etc.

2.2.2 Meaning of advertising

Advertising is a form of mass communication which is designed to promote the sale of a
product or service or a message on behalf of an identified sponsor. Most advertising is
designed to promote the sale of a particular product or service. However some advertisements
are designed to promote an idea or influence behavior such as encouraging people to not use
illegal drugs or smoke cigarettes, informing people about family planning etc. Such type of
advertisements is often called public service ads (PSAs). Some advertisements are also made
to promote an institution, such as the Red Cross or Maiti Nepal and are known as institutional
advertising. The basic purpose of this type of advertising is to encourage people to volunteer or
donate money to the institution.

We can say that the basic purpose of advertising is to draw an attention of people towards
particular product, service or an idea. However, in today's world of competition, it is not
enough for the advertisements to draw the attention of buyers. -They should be able to
persuade the consumers to use the advertised product, service or an idea. Then, only the goal of
an advertisement is achieved.

"Advertising is any paid form of non personal presentation and promotion of ideas, goods or
services by an identified sponsor."

Advertisement consists of all the activities involved in presenting to a group, non-personal, oral

19
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.

According to American marketing Association "Advertising is any paid form of non personal
presentation of goods, services or ideas for action, openly paid for by an identified sponsor."

The above definitions include many features of advertising. Firstly, advertising is a non-
personal. There is not any kind of face to face interaction in advertising. Physical presence of
the sender is not required in advertising. The message is transmitted through one or more than
various types of mass communication media such as television, radio or newspaper. Because of
its impersonality, the audience does not feel obliged to pay attention or respond. As such
advertising cannot be as compelling as company sales representative. However, advertising
enjoys the advantage of mass communication. In this regard, advertising is the most cost
efficient method of communication. It is an efficient way of reaching a large number of
geographically dispersed buyers at a low cost per exposure.

Secondly, advertising is sponsored by an identified sponsor. The sponsors may be individuals,

group or an organization. The sponsor who controlled the advertising is identified. In other
words, public knows the sponsor behind the advertising as they are openly identified in the
advertisements.

Thirdly, advertising is a paid form of promotion of ideas, goods or services. Payment should be
made by the sponsor to the media which carry the message. The spenders not only include
business firms but also museums, social organizations, professionals etc. "Advertising is one of
the most widely used promotion tools. It is used by business, non-government organizations,
charities and service institutions.'' Last but not the least, advertising has a message. It carries a
verbal or visual message. The message, thus carried, is encoded by the sender and decoded by
the receiver. In the above mentioned definition of W.J. Stanton, there is a clear distinction
between advertising and advertisement. Advertisement simply is the message where as
advertising is a process which includes programming the series of activities which are

20
necessary to plan and prepare the message and present it to the target market.

Many experts believe that advertising has important economic and social benefits. There are
also some people who say that some advertising is deceptive or encourage an excessively
materialistic culture or reinforces harmful stereotype. However, the majority of people believe
it as an important buying guide.

Thus, advertising is a paid form of non-personal mass communication and promotion of ideas,
goods or services by an identified sponsor to the target market. And advertising uses mass
communication media as mentioned in the above last definition.

2.2.3 Specific Reasons for Advertising

The primary reason for advertising by any organization is to promote the sale of a product or
service. However there are many special and specific reasons for advertising. Following are
some specific reasons for advertising:

 To announce a new product or service

 To expand the market to new buyers

 To announce a modification
 To announce a price change
 To announce a new pack
 To make a special offer
 To invite inquires
 To sell direct
 To test a medium
 To announce the location of stockiest
 To obtain stockiest
 To educate consumers
 To maintain sales
 To challenge competition

21
  To remind
 To retrieve lost sales
 To please stockiest
 To please the sales force
 To recruit staff
 To attract investors
 To export
 To announce trading results

Announcing a new product or service usually means a costly and dramatic launch. To create a
market for a product is not an easy job. The buying public is conservative, skeptical and is hard
to shift from established habits. The advertising has to be bold, dramatic, persuasive and
convincing to promote something new. A long term campaign of advertising is required instead
of a solitary big splash. The advertising should be persistent and insistent for the new product
to create the market.

Manufacturers also use advertising to expand the market to new buyers. Since, the products
already have ‘some' market; the advertising is likely to have greater impact. People are frank
jerkins, advertising already aware of the products. The products have already been proved in
professional, commercial or some other accepted use. The advertising used by the advertiser is
more persuasive rather than informative in this case.

An existing product is sometimes modified. It may be given a 'face lift' with an additive, a new
finish or casing such as a new pack or container etc. The product is advertised to announce a
modification with an attempt to revive the sale of a product because of competition.

Advertisement announcing a price change is more common form. We can see many examples
of these types of advertisements during festival festive discounts and hence change in price.

Some advertisements announce a new pack sometimes; a manufacturer may update a very old-
established and probably old fashioned container. At that time, it is necessary to promote the
product to assure the consumers that the product is the same or better in quality. Consumers

22
may suspect that a new pack means a different or inferior product so the new pack is announce
through advertisement assuring the consumers about the quality product.

For various reasons such as competition, slack season, the business houses may plan to give
special offers need to be advertised. For example, Buddha Air announcing mileage card system
offers to their regular clients traveling some sectors.

Some manufacturers advertised to sell direct while other advertise to test a medium. The
advertising objectives or reasons for advertising differ as per the advertisers' requirement. The
other objectives of advertisements can be to educate consumers, to announce the location of
stockiest, to challenge sales, to maintain sales etc.

2.2.4 Types of Advertising

Advertising can be divided into two broad categories (a) consumer advertising and (b) trade
advertising. Consumer advertising is the type of advertising which is directed at the public
where as trade- advertising is directed at wholesalers or distributors who resell to the public.

Consumer advertising can be further divided into national advertising and local advertising.
National advertising is directed at consumers throughout the entire country. This type of
advertising usually aims to create awareness among the public of a product or service, or it
tries to build loyalty to a product or service. Local advertising aims to inform public in a
particular area where they can purchase a product or service. Advertising to the public also
take the form of institutional advertising ,product advertising, image advertising, cooperative
advertising or informational advertising.

Rather than trying to sell a specific product, institutional advertising seeks to create a favorable
impression of a business or institution. It is designed solely to build prestige and public respect.
For non-profit institutions, such advertising helps support the institution's activities i.e., by
encouraging blood donations or cash contributions for the work of an organization like the Red
Cross. However, for profit earning business instutions advertising support to promote the

23
product and quality for their consumers.

2.2.5 Methods of advertising

Medium is the instrument or the way through which the advertisements are put before the
public. It is the vehicle that carries the messages to the right readers, viewers, listeners or
passersby. In advertising agencies there are media planners and media buyers who are highly
experienced experts. The media owner exploits the advantages of their media in order to sell
air-time, space or sites.

One of the functions of advertising is to select medium from among the available alternatives
that will maximize the number of people reached and the frequency with which they are
reached. The advertisers must first set the target market they want to reach and then they must
decide

(a)The desired frequency of the message exposure in order to effect the change in behavior that
will affect the sales of their brand

(b)The maximum number of the people in the' target market that can be readied with the
desired frequency. The greater the frequency desired, the smaller the reach obtainable with a
given budget.

The media selection is a complicated process because not only is it necessary to choose among
major media types, such as television, radio, newspaper, but also specific selections must be
made within each general type. For instance, if magazines are chosen, specific magazines and
even issues must be selected.

Similarly, in case of radio and television, there is hot only the question of what networks or
stations, but what programs, what day or days of the week, time etc. to be considered as well.

The classification of different mediums into different groups differs from author to author. The
eastern concept and the western concept of classification are different. For example, author
Chunawala with other four authors in their book Advertising Theory and Practice have
classified advertising media as broadcast and non-broadcast media. Broadcast media include

24
radio and television where as the non-broadcast media include videos, cables, network,
cinemas etc. Besides these media, there is print media which includes newspaper and
magazines. These three media are called the "mass media" or "technological media". In
addition to these three media, they have explained the outdoor media like hoarding, postures,
banners, transit media etc. However, the media can be classified as:

1) Print media
The print media also can be classified in to:
(a) Newspaper, magazines
(b) Other papers
2) Electronic media
The electronic medial includes:
(a) Radio
(b) Television
(c) Video
(d) Cinema
(e) Electronic signs
(f) Sky-writing
3) Direct Advertising media
The direct advertising medial is also in four types
(a) Envelop enclosure
(b) Catalogue and booklets
(c) Sales letters
(d) Gift novelties

2.2.5.1 Print Media of advertising

Print media is one of the pioneer media where all the information is in written forms. In today's
world of visualization, print media are still preferred more for advertising. This may be due to
its wide reach. Print media can be classified into following categories:
a) Newspaper: - Daily, Weekly, biweekly
 Morning edition. Evening edition.

25
b) Magazines: - Weekly, Fortnightly, Monthly and Annual
 Fashion, Women, Sport, Tourism, Geography, Films etc.

a) Newspaper advertising
Newspaper as a mean of communication has become a part of life. It is really hard to imagine
life without newspaper. Many people are habitual to start the day with newspaper. "Newspaper
is one that gives news, views, ideas, interpretations, opinions, comments and explanations
regarding the social, economic, political, educational, moral, cultural, ecological,
methodological developments and the like" We can find news and views of different types in
the newspaper. There are economical, social, educational, political, moral, cultural, ecological
etc. news and comments in newspapers.

Newspaper has been one of the largest media used to advertise the product, service or idea. It is
estimated that 45% of the space in the newspapers is used for advertisements. It has continued
to remain the most powerful message carrier. The role of newspaper as an advertising medium
is increasing day by day and it will go on increasing with the development in the business field.

Newspapers are printed and circulated based on many aspects. They may be classified
according to the coverage (area), frequency, language etc. The habit of reading newspaper
among people is increasing day by day. As such the advertisement in the newspaper is
receiving favorable response from the prospective customers. Newspaper as a medium of
advertisement still occupies the first position in the American business society. It is said that
every newspaper is read by at least three readers. The merits and demerits of newspaper are as
follows:-
Merits of Newspaper Advertising:-

1) Wide Coverage
The newspaper medium enjoys the advantage of a wide coverage within and outside the
country. With the addition of supplements on holidays, there is something of interest for
everyone. It readies to the readers of every age and income group. We can take an example of

26
weekly newspaper "Saptahik" in Nepal which is read by every age and income group.

2) Quick response

Newspaper is usually read at leisure time. As the readers are fresh and in receptive mood, the
advertisements published in newspaper have a better chance of creating a favorable response
from the prospective buyers.

3) Regularity

Regular advertisements in the newspaper continuously remind the reader about the product,
service or an idea. Moreover, seeing the same advertisement in the newspaper leaves a strong
impact on the mind of the prospective buyers. There is also a high believability among the
reader about the published advertisement.

4) Flexibility and timely announcement

There is a great 'flexibility as any changes or modifications can be made in the advertisement
published in the newspaper. Besides, the announcement can be made on time, as the newspaper
appears every morning or evening in the regular time.

5) Economical

The cost of advertising is low as compared to other media. This cost become even lower if
there is increment in the circulation because more the circulation, lower the cost per reader.

Demerits of Newspaper Advertising

1) Short Life

The life of advertisement in the newspaper is very short. A -reader may read the newspaper for
10-15 minutes so the life of advertisement published in the newspaper is even shorter than that.
Besides, the newspaper becomes old as soon as the next edition comes into the circulation. So
the life of newspaper is only one day.

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2) Lack of quality reproduction

Mostly the paper used in the newspaper is of cheaper quality so the reproductions of the
advertisement lack the finer details of the layout. If we compare the reproduction of the
advertisement of newspaper to that of magazines, or other media, we can see that there is a vast
difference between them. Both the color and B/W production of the advertisement are of poor
quality in newspaper as compared to magazines or the other media. Due, to this, there is a
greater possibility that the readers are not attracted to the advertisement published in
newspaper.

3) Waste in circulation

The advertisement in the newspaper may be wasted as the circulation may not cover the
desired group of customers. It may be due to illiteracy of people. In a developing country like
Nepal, there is a great chance of waste in circulation of newspaper as the illiteracy rate is high
here. If the target market is illiterate villagers, the use of newspaper as advertising medium is
out of question. The newspaper is restricted to the certain literate group only.

4) Duplication

The repetition of advertisements in newspaper has two negative impacts. On the one hand, it
increases the cost of advertisement and on the other hand, duplication of advertisement irritates
the prospective buyers.

b) Magazines advertising
Magazines are the periodicals, which may be published weekly, fortnightly, monthly, quarterly
or annually. Usually, magazines are printed in better quality papers with good articles. It is
read at leisure time. It can be either special or general interest magazine. Special magazines are
the type of magazines which are specialized in one particular field. Examples of such
magazines are sports magazines, fashion magazines etc. where as general magazines cover a
lot of areas. They include variety articles on different subjects. One example of such magazine
is "Reader's digest". "The chief advantages of magazine advertising are: the manner in which

28
magazines select their audiences/ simultaneous, uniform coverage of the entire nation;
thoroughness with which the magazine is read; covered with its longer life and its multiple
areas. Opportunities offered the advertiser to reproduce in life like fashion, full, sol or if lie
chooses, his products in use and its consumer advantages; and completeness of presentation"
There are some disadvantages of magazine as well.

Merits of magazine Advertising

1) Long life
Unlike the newspaper, magazines have long life the life of newspaper is one day Where as the
life of magazines is certainly more than one day. And the life of an advertisement will depend
on the period of the time between one issue to another issue. For example, the annual magazine
has one year duration. Most readers have a habit of collecting the good magazines for the
longer period. As a result, the advertisement published in magazine has long life.

2) Visual display

Since the magazine usually use good quality papers, the advertisements published in magazines
also look good with true to life color display. Such advertisements have excellent pictorial
reproduction. Besides, the message can also be supported by detail figures, drawings and color
combination which make it more clear and lasting.

3) Selectively

Magazines are printed to meet the needs of the people of different age, income, occupation, sex
etc. For instance, sports magazines are mostly read by youngsters. Similarly, fashion
magazines are mostly, read by teenagers as well as office going ladies. So an advertiser can
select the appropriate magazine to allure their selected market segments. For example,
advertisement of a football on a sport magazine. Advertisement of cloth store like Benetton-in
fashion magazine etc.

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4) Loyalty and prestige

Educated people usually purchase and read the well-known good magazines. They even relate
their prestige to some magazines. It is a belief among them that reading magazines like Times,
Reader's digest. Cosmopolitan bring prestige to them. This group of people is loyal to the
magazines' and don't switch to other magazines. They believe in advertisements published in
the magazines.

5) Geographical flexibility

Magazines usually have a national and international coverage. Many people in many countries
read them. Magazines like Reader's Digest, Cosmopolitan, and Femina etc are read by the
people in more than one country. The customers of many types of magazines are worldwide so
the advertisements published have great reach.

Demerits of magazine advertising

1) Inflexibility regarding changes:-

Magazines are inflexible regarding the changes in advertisements. As magazines have a set
date for issue, the advertisements have to be given to the magazines a long time before the
issue date. The period becomes longer in case of colorful advertisements. So the advertisers
have to get the advertisement layout before the issue date. Last minute changes, if any, cannot
be made, as space in the magazines is already allotted.

2) Costly

Because of the high quality of papers and also the various technical aspects used in printing of
advertisement, the cost of advertisement in magazine is definitely higher than that in
newspaper. And also as the number of persons subscribing the magazines is also limited, the
cost of advertisement per reader is high.

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3) Some waste in circulation

If the particular product's target is local market, its advertisement in the national and
international magazines is wasted and unfruitful. Because of the high cost involvement, small
businessman doesn't prefer to advertise their product in magazines.

4) Restricted frequency:-

Frequent communication with reader is restricted as the magazines are printed on the periodical
basis.

2.2.5.2 Radio advertising

Radio is one of the most popular media that reaches to ear of mass public. There are usually
two types of radio broadcasting i.e., FM and AM. FM is frequency modulation in which signals
are received with great regularity and with clear sound

Whereas AM is amplitude modulation in which sound wave length varies in size though the
frequency remains constant.

"Advertising is carried on in radio either by the use of short commercials, also known as 'spot
advertising' or by the use of sponsored programs. In spot advertising, short advertisements of
the duration of a few seconds are introduced as a part of the usual broadcasting programs. The
advertisements may consist of jingles, dialogues, and opinions of well known personalities or
such other advertisements. Sponsored programs going on for fifteen minutes or more may be
prepared by advertisers, for combining a popular program with advertising."

In a country like Nepal, advertisement through radio can have a great impact on the
prospective buyers because other media like television and newspaper cannot reach to the
remote place. Due to the lack of electricity and the expensive cost of the Television sets people
from remote places are deprived of it. On the other hand, due to the high illiteracy rate in
villages, press, media cannot provide the necessary impact on the prospective buyers.

31
Radio broadcasting first started on the United Kingdom and spread to the other countries. In
Nepal, Radio Nepal was established on 20th Chaitra, 2007 B.S. Some merits and demerits of
radio advertising are as follows:-

Merits of radio advertising

1) Human touch

The radio advertising lays a human touch. The advertisements in the form of jingles, dialogues
of the live broadcasters and opinions of well known personalities from their own mouth are
more effective. The listeners can listen to their favorite anchor's voice. In some programs, the
listeners can present their opinions and broadcast their voice on air as well, which appeals to
the mass.

2) Selectivity

There are many locals and national radio broadcasting systems that the listeners as well as
advertisers can select among them. The listeners tune in to the most interesting and good
station as per their choice. The advertisers can take into consideration the listening habit of
their target customers and broadcast the advertisement according to them. They can select the
programs or station and time of broadcasting suitable to their target customers.

3) Economical

Radio advertisement is comparatively cheaper than other media of advertising. As it covers to

the mass in every hook and corner of the country, per listener cost is definitely cheap. In other
words the advertisement cost, thus, is cheap for the advertiser. In a country like Nepal, where
due to low literacy level, press is wastage and television cannot reach the remote places, the
importance of radio is high. Radio sets are also available in relatively cheap price so the poor
people can also offer them. As such radio advertising is also economical.

32
Demerits of Radio Advertising

1) Short life of message

The message broadcasted through radio has a short life. The advertisement through radio is
wasted if the target listener is not listening to the advertisement. The life of message ends.
Even if the listeners listen, he cannot refer back to the message because the life of
advertisement ends with the completion of the announcement.

2) Lack of illustration

Visual display is not possible through radio. Other media have this advantage over radio
medium. As such advertising through radio may not be effective. Radio advertising only tries
to impress listeners through hearing only. It uses word, sound and music for the
advertisements.
3) Time Limit

There is a certain time allotted to the advertisement in radio. As the allotted timings, the
advertisement is also limited. The advertisement must not be lengthy as an advertiser cannot
buy long announcement timings so there is always limited time in radio

4) Wastage

Radio advertisement covers the mass so specific coverage of special groups like youth, old age
etc is not possible. Besides, listeners are more interested oh music, news so the advertisements
are often not given attention. As such, there is wastage of advertisements.

2.2.5.3 Television advertising

Television is one of the most powerful media in today's world. It is the latest medium of mass
communication and is now extensively used for advertisement.

The invention of television was a lengthy, collaborative process. An early milestone was the
successful transmission of an image in 1884 by German inventor Paul Nipkow. His mechanical
system, known as the rotating disk, was further developed by Scottish scientist John Logie

33
Baird, who broadcast a televised image in 1926 to an audience at the Royal Academy of
science in London. However, television becomes popular by 1950s in America and within a
decade it was spread over to European countries, Canada, Australia and Japan. It gains
popularity in Nepal much later. "Television broadcasting in Nepal started on regular basis on
2041 B.S. (1985). Television broadcasting services of Nepal Television (NTV) which started
with limited resources, now broadcast its program for 114 hours a week basis through its 3
studios, regional program production and broadcast center in Kohalpur (Bankke) and
Murtidanda (Ham), Nanijedanda Bhedetar (Dhankuta), Jaleshwar (Mahotarri), Hetauda
(Makwanpur), Daunne (Nawalparasi), Pulchowki (Lalitpur), Kakani (Nuwakot), Sarangkot
(Kaski), Tansen (Palpa), Butwal (Rupandehi), Harre (Surkhet) and 11 broadcast centers in
other locations in the kingdom. It is estimated that about 47% of the population living in 32%
of area of Nepal can watch the programs of Nepal television (NTV). Programs to increase
broadcasting capacity and extending reception area coverage are underway." (AAN news
bulletin; 2004:35)

Television as a medium of communication uses a scientific synchronization of sound, light,

motion, color etc. Because of these dominant characteristics of television, television
advertising is gaining popularity day by day .Fifteen years ago when the Nepal Television
(NTV) began its first transmission there was hardly one minute of advertising in a two hours
transmission. Today, the Nepal Television (NTV) has an average of 16 minutes 30second of
advertising per day of transmission.

The merits and demerits of television medium are as follows:-

Merits of television advertising

The main advantages of television advertisement are as follows:

1) Deep Impact

As television combines sight, sound and motion, advertisement through television is most
impressive and effective. Television advertisements have the capability of affecting the eyes,
ears and the feelings of the viewers. True to life presentation can be made through television.

34
Availability, outlook, special features, utilities etc information of the products can be easily
demonstrated through television advertising. It appeals to the senses of viewers and can draw
their high attention.

2) Life like presentation

Advertisement through television has a dominant advantage of life like presentation which no
other medium has. Advertisement with movement, color, sound, and sight is more appealing
than that without these characteristics. As such television advertising is the most advanced
form of advertising.

3) Selective and flexibles

Television is a flexible medium as changes can be made at any time. The advertiser can change
the content of advertisements at any time. They can edit and retake their advertisement if they
are unsatisfied with the result though the process is costly. They can also select the suitable
time; channel etc. to broadcast their advertisement more effectively. There are a wide variety
of channels so the advertisers have more alternatives to choose. They can also choose on the
basis of the interest of their target customers and the coverage of the television like local,
national, international etc.

4) Mass communication

Television is one of the mass communication media. It has been observed that a person
normally watches television for three hours- a day. As such people come across television
advertisement more often than other form of advertisement. The effect of television
advertisement is so much that the people can't help themselves singing the advertisement
jingles or act like the actors in the advertisements. There are varieties of programs that every
viewer has something of interest. While watching the programs, the viewers also come across
the advertisements of the sponsor products. They are regularly reminded about such products.
In this way, television advertising appeals to the mass.

35
5) Better distribution

Television advertising is beneficial to not only the producer but also to the middleman. When
the producer advertised their product through the most advanced medium like television, the
middlemen like wholesalers, retailers etc also get the benefits in the form of maximization of
sale and profit.

Demerits of Television Advertising

There are some limitations of television advertisement which are as follows

1) High cost
Television is very expensive medium of advertising. Therefore, the small business unit cannot
afford television advertisement. In India, the cost of advertising through television for only ten
seconds is Rs. 45,000 to Rs.70,000. This is about 800 times more than the cost of radio
advertisement. In Nepal, the rate of advertising through television is different for Nepali
product and foreign product. In ordinary time, television advertising for ten second cost Rs.
900 for Nepali product and Rs. 1800 for foreign product. This rate is doubled if advertisement
is to be transmitted at prime time. (Statistics: 2045). Now, television advertising is much
expensive and is increasing.

2) High clutter

"For a long time, television enjoyed the dominant position in media mix,-other media were
neglected. Then media researchers began to notice television's reduced effectiveness, which
was due to increased commercial clutter (advertisers beamed shorter and more numerous
commercials at the television audience, resulting in poorer audience attention and impact.),
increased "zipping and zapping" of commercials, and lowered commercial TU viewing owing
to the growth in cable TV and VCRS. Many advertisements are broadcasted one after another
in Television. Seeing too many advertisements for different products, the prospective buyers
often get confused irritated and hence, loose interest in advertisements and switch on to another
channels for programs avoiding advertisements.

36
3) Short life

Advertisement in television comes at once and then gone. It is like a flash of communication
which cannot be referred back as in newspapers and magazines. As such, the life of television
advertisement is short. The frequency of television advertisement will have to be more to have
an impact on the prospective buyer and it is so expensive.

4) Low reach

In a country like Nepal, where there is vast difference in urban and rural life style, not all
people afford to enjoy television. This is due to the fact that it is very expensive. Rural poor
people cannot afford to buy it. Moreover, in many villages of Nepal still there is no electricity
facility. So the advertisement which target audience also includes rural people, television
medium is not effective as it cannot reach to them.

2.2.6 Advertising as a part of marketing activities

"Marketing is a social and managerial process by which individuals and groups obtain what
they need and want through creating, offering and exchanging products of value with others."

Marketing consists of activities that facilitate exchanges such as selling, buying, product
planning, production, branding, pricing, packaging, advertising, sales promotion etc. For an
exchange to happen, four conditions must be satisfied. Firstly, there must be two or more
individuals, groups or organization. Secondly, each party must have something of value to
exchange with other party.
Thirdly, there must be willingness on part of one party to give up its "something of value" in
exchange for the "something of value" held by the other party. This something of value can be
product, service or idea or it can be financial resources like money or credit. Lastly, there must
be communication between the two or more parties.

Advertising is one of the components of marketing. There are four Ps in the marketing mix i.e.,
product, place, promotion and price. Advertising falls under promotion mix.

37
The common characteristic of all marketing activities is that they are performed to achieve the
common goal of increasing the sales of product, service or an idea. The Marketing activities
are distinguished from each other on the basis of the methods they use to accomplish this
common goal. For example, sales promotion uses the short term incentives to encourage trial
or purchase of product or service where as direct marketing uses telephone mail and other non-
personal contact tools to communicate with specific customers and prospects. Personal selling
use the method of face to face interaction with one or more prospective purchasers to facilitate
the sale of product or service where as public relations and publicity uses a variety of programs
in order to promote the company's image or its individual products. In contrast to all this,
advertising uses various mass communication non-personal media like television, radio,
newspaper etc to present and promote the ideas, goods or services to the target market.

2.2.7 Advertising and personal selling

"When a persuasive communication is directed toward a single individual, it is an act of

salesmanship. When it is directed towards a large group of individual it is called advertising."

This definition distinguishes the advertising and personal selling on the basis of number of
individuals to whom the communication is directed. However, there are some striking
differences between personal selling and advertising. Some of these are as follows:-

1) Non-personal communication

Unlike personal selling, in advertising a company communicates with its target consumers
through non-personal media. Personal selling involves an interactive relationship between two
or more persons. As a result, customer's immediate reaction to the communication can be seen
and the sales person can make immediate adjustment on the spot.

2) Paid but independent media

Personal selling and advertising both are paid form of communication. The difference is that
the salesmen are a company's employ but advertising media are not. Media are engaged only
on a task/assignment basis. As soon as the assigned task of communicating the message is

38
over, the media get disengaged and work independently.

3) Objective

The objective of advertising is usually to create a favorable impression towards the advertised
product or service so that the consumers are prepared to receive the message through personal
selling and buy the product.

4) Audience

Unlike personal selling, in advertising the message is directed towards a broad spectrum of
consumers. In personal selling, consumers are approached individually.

5) Intensity of communication
Personal selling is more intensive in the transactional phase, whereas advertising is relatively
more intense in pre- and post- transactional phases. In the former, advertising develops
consumer's favorable predisposition while in the latter it prevents or dilutes past-purchase
dissonance."' Personal selling also makes the buyer feel more obliged to listen to the sales talk.
The buyer responds to the salesperson even if the response is simply "Thank you".

2.2.8 Advertising and sales promotion

Sales promotion involves marketing activities, other than advertising, publicity, or personal
selling that increases sales and dealer effectiveness. The forms of sales promotion include trade
shows, demonstrations, samples, contests, coupons, rebates etc.

According to American Marketing Association "Sales promotions are those marketing

activities oilier than personal selling and publicity that stimulate consumer

Purchasing and dealer effectiveness, -such as displays, show and expositions and various non-
recurrent selling efforts not in the ordinary routine."

Sales promotion tools are generally short term measures which are designed to stimulate
quicker and greater purchases of products or services by consumers or traders. Sales promotion

39
is also called as aggressive selling". The major differences between advertising and sales
promotion are as follows:-

1) Management Perspective
In sales promotion, the management's perspective is relatively short term for example, arrest of
declining sales or facilitating new product purchase where as in advertising, .management's
perspective may be both short term and long term. For example, the long term perspective may
be to build up the company image with no immediate increase in sales.
2) Media

There is a vast difference between the media of communication in advertising and Sales
promotion. Sales promotion tools includes coupons, contests, premiums, prizes, product
samples and the like where as the advertising media include audio-visual, press, outdoor etc.

3) Timing
"Although advertising and sales promotion are used as communication media in all the three
phases of transactions, advertising is more pronounced in pre- and post-transaction phase
where as sales promotion is more pronounced in the transaction phase. Thus, sales promotion
serves as an important adjunct to selling."' Sales promotion invites the buyers to engage in the
transaction now. Sales promotion provide incentive to the consumers to buy the product which
result in immediate sale.

4) Frequency
Sales promotion is less repetitive and frequent than advertising. Advertising is more repeated
as its impact is long-term and cumulative where as sales promotion is conducted when certain
objectives is to be achieve for example, by offering product samples to introduce new product.

2.2.9 Advertising and Publicity

Publicity is another medium of communication through which a company makes known its
target consumers about its product, service or an idea. It has been defined by the American
Marketing Association as "non-personal stimulation of demand for a product, service or

40
business unit by planting commercial significant news about it in a public medium or obtaining
favorable presentation of it on radio, television or stage that is not paid for by the sponsor."

As publicity is not paid for, its appearance is not always certain and its presentation is not
programmed. The major advantage of advertising over publicity is that the advertiser can
control their advertisement about the product or service or idea as he pays the media for the
time' or space. Advertiser is also guaranteed about the transmission of the message. However,
publicity has some advantages too. Publicity as a medium of communication is often used by
companies because of its effectiveness in transmitting the desired message, generating sales
and achieving other objectives. Many companies often feed to the press slanted stories and
features of sponsors which lends credibility to the message. This arouses interest in consumers
who are otherwise indifferent to advertisements.

2.3 Review of previous study

There are some similar studies which had been conducted previously about advertising
research has very short history in Nepal. Professionalism and highly advanced marketing and
advertising practices have not institutionalized here in

Nepal. However, the Nepalese business environment is also influenced and the entrepreneurs
have recognized the need of advertising (Sharma;2002 :95). For this, some research studies are
conducted on Advertising and Sales promotion.

A study of Mr.P.R Panday (1980) entitled "Advertising in Nepal". The other objectives of
this study are pattern and blends of advertising and the constraints prevailing in advertising
practices in Nepal. His study was confined to the descriptive analysis of then situation of
advertising business. It was natural to undertake such on advertising field at that time as the
advertising was still on infant stage of development. Thus, has study did not touch the creative
aspect of advertising.

The major findings of the study state that the advertising is the main method of promotion
practiced in the country. Advertising in the company is handled, by persons at the senior level,

41
when there is a separate advertising department in the company, Regarding to the services
rendered by the advertising agencies, none can offer full services properly. A, few agencies
concentrating on producing interesting advertisement from the advertisers and other specialists
service such as block makers, printers, artists etc. Publication media, radio and cinema are the
most used media for commercial advertising. But there are very few alternatives. The
Gorkhapatra is the only medium with any significant circulation. The advertising programs are
not well coordinated with the other elements of marketing and promotional strategy. The
effects of advertising are generally not evaluated.

A study of Mr.Ram Updhaya(1980) entitled on "Radio Advertising and Us impact on

purchasing ads in consumer goods" conducted a study. As radio was only the reliable medium
of advertising in Nepal, he conducted the research on the radio advertising and its lively impact
on purchasing acts in consumer goods. In his study he has listed twenty different findings
regarding the radio advertising and its impact on purchasing decision. The objective of this
study were to study the availability and Comparative cost of different forms of advertising in
Nepal to find out the impact of radio advertising on consumer buying behaviors and to study
the influence of radio.
Advertising on sales of the advertised product. Thus his study is strictly confided to the impact
of advertising on sales and consumer buying behavior.

A study of Ms. Chandra Shrestha (1980) entitled "An analysis on market position of
shampoo". The objective of the study was to find out if the sales promotion does impact on
sales of Beer. To find out which mode of sales promotion is more wisely used by the
manufacturers as sales promotion tools, to find out the most suitable media to advertise about
the sales of beers in Nepal and to-predict the sales of coming year if every factor remains same.
This study specially deals with the most recent and widely used methods of sales promotion
and its impact on product market.

A study of Mr.Ram Baral (1995) entitled "Advertising and brand preferences of instant
noodles". His study has been contributed to the evaluation of communicative function of

42
advertising and its impact on brand selection in the case of consumer non-durable goods. The
objective of the study was to explore the effect and communication of product brand attributes
and its likely impact on consumer brand selection regarding the instant noodles case as the
basic product. Thus, his study specifically dealt with communicative aspect of advertising.

A study, of Mr. P.R Panday (1999) entitled "The study on brand loyalty" focused to find out
whether or not brand loyalty exists in the Nepalese consumer market while purchasing low
involvement consumer products. Despite of this the objectives of the study are to analyze and
overlook what is brand? What are correlates of brand loyalty and how far these correlates are
decisive to make consumer brand loyalty in Nepalese market. What is the strategy further to be
taken for making consumer brand loyalty For this research work some consumer products are
taken such as detergent soap, instant noodles, shaving blade, toothpaste and soft drinks. Trough
this study it is found that consumer give high importance to brand names at movement of
purchasing. They emphasize in brand. Brand awareness to the Nepalese consumer is found to
be high and majority of the Nepalese consumers are found brand loyal. It is found that the
factor such as sex, age, marital status, income, family size, and store loyally, specific deal, and
favorite brand of the other member, of the family influence brand loyalty but the degree and
direction of relationship varies across product. Major recommendation of the study are
branding is necessary for the product benefits, qualities such as action or color, easy to
pronounce, recognize and

Remember as well as distinctive. Brand loyalty is absolutely a great asset of company. For the
achievement of the great asset the marketing strategy of the company into product, price, place
and promotion should be sound and well defined.

A study of Mr R.K Neupane (2006) entitled "Study of market situation of toothpaste in

Kathmandu" has been conducted to find out the role of advertising on brand choice of low
involvement consumer goods. It is the study trying to show the importance of advertising on
brand choice of low involvement products. The objective of this study was to find out if

43
advertising plays any supportive role in brand choice decision, if the consumers brand choices
for low involvement goods are completely, partially or not impressed through advertisement, if
there other promotional tool exist which has more weight in brand choice decision than
advertising.

A study of Ms Anita Adhikari (2007) entitled "Impact of television advertisement in Sales "
has been conducted to find out the role of advertising on brand choice of low involvement
consumer goods. It is the study trying to show the importance of advertising on brand choice of
low involvement products. The objective of this study was to find out if advertising plays any
supportive role in brand choice decision, if the consumers brand choices for low involvement
goods are completely, partially or Not impressed through advertisement, if there other
promotional tool exist which has more weight in brand choice decision than advertising.

In Nepalese product market there are various cosmetic products which available for consumer
use. These products are manufactured by various national and international manufacturers and
out of them Vatika Shampoo is one of the most favourites cosmetic product, which is produced
and introduce into the Nepalese product market by Dabur Nepal Pvt. Ltd. and this is the sister
concern of Dabur India Ltd. However, there are no previous research reports are available in
Nepal in the field of marketing studies regarding the Nepalese cosmetic product Likewise,
there is no any research can be found with reference to Vatika Shampoo though there is a
necessity of such types of research in Nepal. Thus, researcher has attempted to prepare and
present this report to fulfill the requirements of such reports.

44
 CHAPTER- THREE
RESEARCH METHODOLOGY

This part of the study deals with methods and techniques, which were used, in this study. This
study is based on both primary and secondary data. Primary data were collected by taking
interview to different peoples and secondary data were collected from newspaper, magazines,
NTV views survey 2004, NTV rate card, dissertations submitted the institute of management
etc.

3.1 Research Design

A research design is a plan, structure, and strategy to obtain the objectives of the study. The
research was mostly based on the primary data and information. Hence, survey research design
has been used. In this study media of advertising and impact of television advertising have
been evaluated. The' opinions of peoples about television advertising have been gathered. For
these both, thus, questionnaires and published data are used.

3.2 Population and Sample

Data used in this study are both primary and secondary in nature. 80 questionnaires were filled
by people of different age groups, 80 questionnaires with different educated groups and 80
questionnaires were filled with the consumers selecting 40 males and 40 females which were
the main source of primary data. And secondary data were collected from the NTV viewers
survey (official report), Nepal Television Rate Card, Introduction card of NTV, dissertation
submitted to the institute of management and manuals and papers.

3.3 Data Collection Source

A primary data collection technique is questionnaire. A set of questionnaire has been prepared
and filled by the different level of people with the help of interview. This questionnaire is

45
prepared to support all the objective of this research and researcher herself was presented to
take interview with the people. While, secondary data were gathered from different sources,
some of the major sources are NTV library. Central Burro of Statistics (CBS) central library
etc.

3.4 Analysis Techniques

In order to accomplish the objective of the study various graphs, diagrams, including pie chart,
have been applied for the purpose of analysis. The result of analysis has been properly
tabulated, compared, analyzed and interpreted.

3.5 Data processing and tabulation

The consistency of the answer provided, by the respondents was checked and tabulated
according to age, sex and education status. Different sets of tables have been prepared for
every important questionnaire. Simple listing method is used for the tabulation of data and
different responses made by them are presented on percentage basis as well. The sample data
collected covering the various backgrounds are presented in table below:

The situation of gender wise data collection is presented in table -1

Table-3.1 Gender-wise Sample Collection

Description Sample size
Male 40

Female 40

Total 80

Similarly, the data collected from covering the various educational backgrounds is presented in
table-2

46
 Table-3.2
Educational wise sample collection

Description Sample size

Below S.L.C. 16

S.L.C. 16

Graduate 16

Above Graduate 16

Uneducated 16

Total 80

Likewise, the situation of age-wise sample collection from various age groups are Presented in
Table-3

Table-3.3

Description Sample size

Below 15 16
16-25 16
26-35 16
36-45 16
Above 45 16
Total 80

47
 CHAPTER-FOUR
PRESENTATION AND ANALYSIS OF DATA

The advertising business in Nepal is flourishing day by day, which passes through an
appropriate media like television, radio, press and magazine. The television advertising is not
ordinary communication but marketing communication. Communication is an integral part of
modem marketing without which communication is unimaginable in these days. Television
advertising relays the message of different product in the easy touch of common people. This
analysis covers' Kathmandu metropolitan city and glances upon the behavior of different
consumers.

The sample populations of the study were 80 respondents of the valley belonging to different
age group, which comprises of 40 males, 40 females. The major objective of this part is to
analyze the view of different people regarding television advertisement.

4.1 Age-wise consumers' preference on TV advertisement

The table below shows the age level and their advertisement preference. The sample size of
total people is 80 and it is divided into five groups of 16 respondents in each group. The detail
situation of response has been presented in table- 4.1 below:

Table-4.1
Age-wise consumers' preference on TV advertisement

Description Sample Musical % Good % Simple % All %

size wording Type
Below 15 16 10 62.5 3 18.75 1 6.25 2 12.5
16-25 16 9 57.25 5 31.25 0 0 2 12.5
26-35 16 6 37.5 7 43.75 0 0 3 18.75
36-45 16 5 31.25 9 56.25 1 6.25 1 6.25
Above 45 16 8 50 7 43.75 0 0 1 6.25
Total 80 38 47.5 31 38.75 2 2.5 9 11.25
Source: Field survey- 2009

48
It was found that 62.5% of people (i.e. Below 15 years) preferred musical advertisement
mostly, 18.75% of people are found to prefer good wording, 6.25% of people are found to
prefer simple advertisement and 12.5% of people are found to prefer all the advertisement i.e.
musical, good wording, and simple. The reaction of the people those fall in age group of 16-25
like this: 56.25% of people like in the musical, 31.25% of people like the good wording,
whereas no one likes simple advertisement of this age group and 12.5% of people like all types
of advertisement under the age group between 26-35, 43.75% of people preferred
advertisement having good wording, 35.5% of people preferred musical and under the 36-45,
56.25% of the people preferred the advertisement of having good wording as same as the group
of 36-45 followed by the people who like the musical 31.25% and 6.25% of people are those
who like all the types of advertisement under the age group above 45 years like the musical
advertisement (47.5%) mostly followed by good wording(38.75%) all types advertisement
(6.25) and simple advertisement is (0%). This information Tills can be shown on multiple bar
diagram as below:

Figure 4.1
Preference on TV advertisement

10
9
No of Respondents

8
7
6 Below 15
5
4 16-25
3 26-35
2
1 36-45
0 above 45
Musical Good simple All types
wording
Types of Response

49
4. 2 Literacy-wise consumers' preference on TV advertisement
The situation of consumers' preferences on the basis of literacy level of consumer is presented
in table-4.2:
Table-4.2
Literacy-wise consumers' preference on TV advertisement
Description Sample Musical % Good % Simple % All %
size wording Type
Below S.L.C. 16 11 68.75 3 18.75 1 6.25 1 6.25

S.L.C. 16 9 56.25 4 25 0 12.5 1 6.25

Graduate 16 6 37.5 8 50 0 0 2 12.5
Above 16 5 31.25 9 56.25 0 0 2 12.5
Graduate
Uneducated 16 10 62.5 3 18.75 2 12.5 1 6.25
Total 80 41 51.25 27 33.75 5 6.25 7 8.75

Source: Field survey- 2009

The above table shows that lower educated respondents preferred to musical advertisement.
Regarding musical advertisement, 68.75% of people preferred below S.L.C. and 18.75% of
people preferred good wording and 6.5% of people like the simple as well as all types of
advertisements. In the sample size of 16 persons in S.L.C. level, 56.25% of people like musical
advertisement and 25% of people like good wording and 12.5% of people like simple
advertisement and 6.25% of people like all of the above advertisements. In graduate groups of
people give the first priority in good wording like 50%, 37.5% of people preferred the musical
advertisement and 12.5% of people preferred the all types of advertisements. The above
graduate people liked good wording in 56.25% of the total person, 31.25% of people preferred
musical advertisement and 12.5% of people preferred all types of advertisements. The people
who are uneducated show their attitude to musical advertisements by 62.5% of them. Then
18.75% of people liked good wording, 12.5% of people like simple advertisements and 6.5% of
people like all types of advertisements. The above table shows that above graduate people
focus on good wording advertisement and uneducated people and below S.L.C. is focused on

50
musical advertisements. To understand the above information easily and quickly it has been
presented with the help of multiple bar diagram.

Figure 4.2

Literacy-wise consumers' preference on TV advertisement

12
10
NO of Respondents

Below S.L.C
8 S.L.C
6 Graduate
4 Above graduate
2 Uneducated
0
Musical Good wording Simple All types
Types of Response

4. 3 Preference of advertisements according to gender (Sex)

The situation of preferences of consumer on television advertisement according to the gender
or sex is presented in table below:
Table-4.3
Preference of advertisements according to gender (Sex)
Description Sample Musical % Good % Simple % All %
size wording Type
Male - 40 20 50 15 37.5 3 7.5 2 5

Female 40 25 62.5 10 25 1 2.5 4 10

Total 80 45 56.25 25 31.25 4 5 6 7.5

Source: Field survey- 2009

51
The above table shows preference of advertisement according to gender. Out of 40 male, 50%
of respondent are found to like the musical advertisements, 37.5% of respondent preferred
good wording, 7.5% of respondent preferred simple advertisement and 5% respondent liked all
types of the advertisements. Regarding female respondents, 62.5% of respondents like the
musical advertisements, 25% of respondent like the good wording, 2.5% of respondents like
simple and 10% of respondents like the all types of the advertisements.

From the analysis it can be concluded that the female consumers seems to give more priority to
musical advertisement than the good wording advertisement than the male. Altogether, they
preferred the musical advertisements than the good wording advertisements. For more clarity
the above information is presented with the help of the pie-chart.

Figure 4.3
Preference of advertisements according to gender (Male)

Male

8% 5%

Musical
49%
Good wording
Simple
38% All type

52
 Figure 4.4
Preference of advertisements according to gender (Female)

Female

3% 10%

Musical
Good wording
25% Simple
62% All types

4.4 Consumers' television watching habit

The table below presents the consumers television watching habits when the advertisement
comes in the television:
Table- 4. 4
Consumers' Television watching habits

Description Sample size Watching % Not-Watching %

Male 40 30 75 10 25

Female 40 . 34 85 6 15

Total 80 64 80 16 20

Source: Field survey- 2009

53
The above table presents the habit of people watching television living in Kathmandu. Out of
total sample population, 80% of people are found to have the habit of watching television. To
analyze the figure of male and female, (75% male and 85% female,) the percentage of women
watching television seems to be higher by 10% likewise, 25% female are found not to have the
habit of watching a Television whereas male percentage is only 15%.The above statistics is
presented below through multiple bar diagram.

Figure 4.5
Consumers' television watching habits

40
35
30
No of Respondent

25
Male
20
Female
15
10
5
0
Watching Not watching
Types of Response

4. 5 Age-wise consumers' reaction to the television advertisements

The people of different age groups react to the television advertisement differently like some of
them tries to know, what advertise meant, some of them may be curious about advertisement
whereas some of them just watches the advertisement. The situation of consumers' reaction
according to their age group is presented in table-5:

54
 Table-4.5
Age-wise consumers' reaction to the television advertisements
Description Sample size Try to % Curious % Just %
know watching
Below 15 16 5 31.25 2 12.5 9 56.25
16-25 16 8 50 3 18.75 5 31.25
26-35 16 9 56.25 1 6.25 6 37.5
36-45 16 7 43.75 0 0 9 56.25
Above 45 16 6 37.5 1 6.25 9 56.25
Total 80 35 43.75 7 8.75 38 47.5
Source: Field Survey-2009

The above statistics shows that the total sample populations belonging to different age group
have not same opinion to the advertisement. The results regarding the consumers' opinion on
advertisement indicated that, 31.25% respondents belonging to the first age group (i.e. below
15) replied that they wanted just to know the literal meaning of the advertisement, 12.5%
respondents replied that they were really curious about the advertisement, whereas, 56%
respondents were found to be passive television audience.

Likewise, among the respondents belonging to the second age group (i.e. 16-25), 50%
respondents were found to be conscious only with the meaning of advertisement, 18.75% were
found to be highly inquisitive to the advertisement while 31.25% were found to be mere
audience. To analyze the third age group, i.e. 26-35, 56.25% respondents were exciting about
the advertisement and only 37.5% respondents were only audience. In the fourth age group,
(i.e. 36-45), 43.75% respondents were found to be conscious about the meaning of
advertisement and no people were found to be highly interested to the advertisement, while
56.25% respondents were found to be only dull audience. To see the last age group (i.e. above
45) 37.5% were conscious with the simple meaning of advertisement and 6.25% were
inquisitive to the advertisement whereas 56.25% respondents were found to be mere audience.

Thus, from the above data, almost 35% respondents were found to be only conscious about to

55
what the advertisement meant and only 8.75% were highly interested to the advertisement
while 47.5% were found to be dull audience. This is presented in below with the help of
multiple bar diagrams.

Age-wise consumers' reaction to the television advertisements

try to know what adv mean

6
No of Respondent

5
curious about adv
4

3 just watch to adv

zzz
2

below15
16-25
26-35
36-45
Types of Response 45

4.6 Educational-wise reaction to the TV advertisement

The consumers' reaction to the television advertisement according their educational level is
presented in table below:
Table-4.6

Educational-wise reaction to the TV advertisement

Description Sample Try ' to % Curious % Just %

size know watching
Below S.L.C. 16 4 25 1 6.25 11 68.75
S.L.C. 16 5 31.25 2 12.5 .9 56.25
Graduate 16 9 56.25 2 12.5 5 31.25
Above Graduate 16 10 62.5 1 6.25 5 31.25
Uneducated 16 9 56.25 1 6.25 6 37.5
Total 80 37 46.25 7 8.75 36 45
Source: Field Survey-2009

56
Table-6 indicates the reaction of the respondents in term of their educational status. 25% of the
respondents having the qualification below S.L.C. opined that they wanted to know only the
meaning of advertisement and only 6.25% of the respondents were found to be highly
interested to the advertisement whereas 68.75% of the respondents were seemed to be mere
audience.

In the second group having educational degree above S.L.C., 31.25% respondents' tries to
know what advertisement meant, 12.5% were curious to the advertisement while 56.25% were
only audience. The third group having graduate degree, 56.25% respondents viewed that they
were only conscious to the meaning of advertisement, 12.5% were inquisitive to the
advertisement whereas 31.25% were found to be only audience. In the fourth age group (i.e.
having qualification above graduate degree), 62.5% respondents were found to be aware of the
meaning, 6.25% were exciting to the advertisement while 31.25% were found to be the inactive
audience. To see the Ignorant respondents, 56.25% respondents wanted to know what
advertisement meant, 6.25% respondents were highly interested whereas 37.5% were dull
audience.

Figure 4.7

Educational-wise reaction to the TV advertisement

12

10

8 Below S.L.C
S.L.C
6
Graduate
4 Above graduate

2 uneducated

0
Try to know curious just watching

57
From the above statistics, the majority of the forth respondents group is found to be particular
on the meaning of advertisement. The second and the third groups were found to be highly
curious about the advertisement whereas the first group was found to be dull audience.

4.7 Gender wise reaction to the advertisement

The situation of gender-wise reaction to the television reactions is presented in the table below:
Table-4.7

Gender wise reaction to the advertisement

Description Sample Try to know % Curious % Just %

size watching
Male 40 29 72.5 2 5 9 22.5
Female 40 31 77.5 1 2.5 8 20
Total 80 60 75 3 3.75 17 21.25
Source: Field Survey-2009

The above figure or data shows the gender wise reaction of advertisement. Out of total forty
male population, almost 72% of the respondents viewed that they were particular only to the
meaning, 5% were curious to the advertisement and 22.5% were found to be mere audience. To
see the female population, 77.5% respondents were found to be concerned with meaning of
adv. only 2.5% were curious to the advertisement whereas 20% respondents were found to be
mere audience.

From the above data, it can be concluded that female population seems to be more concerned
with the meaning of adv. whereas majority of male population is found to be interested to the
advertisement. This can be presented with the help of multiple bar diagram as given below.

58
 Figure 4.8
Gender wise reaction to the advertisement

35
30
No of Respondent

25
Try to know what adv
20 meant
15 curious about adv
10
5 just watching adv
0
Male Female
Types of Response

4.8 Effect of advertisement on consumers' purchasing decisions

The consumers goods buying decisions is depends upon various factors like advertisement
influence them to buy that product by introducing that product or that product was needed for
them etc. The result of consumers' reaction in this regard is presented in table below:

Table-4.8

Effect of advertisement on consumers' purchasing decisions

Description No. of respondents Percentage

Advertisements induced to buy 5 6.25

Needed 40 50.00
Both of them 35 43.75
Total 80 100.00
Source: Field Survey-2009

The above table shows that out of total respondents, 6.25% respondents were found to be the
customers of the product because they were influenced by the advertisement, 50% responded

59
that they became customer of the product because of their need not due to the effect of
advertisement whereas 43.75% customers were found to support both of the reasons. Thus,
from this above result it can be concluded that majority of the respondents used the particular
product to fulfill their needs.

4.9 Consumers preferences to the product

Consumer prefers different product by considering various factors. Advertisement is also one
of the important factors which affect the. Consumers' preferences of the particular product. The
results of consumers preference to the various type of product is presented in table below:

Table-4.9
Consumers' preferences to the product
Description No. of respondents Percent
Product frequently advertised 65 81.25
Product not advertised 15 18.75
Total 80 100.00
Source: Field Survey-2009

The above figure shows clearly and briefly the number of consumers' preferences to the
product. Out of the total 80 respondents, 81.25%, responded that they prefer the frequently
advertised product whereas 18.75%, respondents opined that they prefer to buy the product that
is not advertised

From the above analysis it can be concluded that majority of the consumers give the priority or
preference to the frequently advertised product.

4.10 Consumers' preferences to the means of advertisement

Consumers prefer different types of means of advertisement according to their needs, interests
and priority. There are various types of means of advertisement available in the market like

60
newspapers, magazines, television, radio, pamphlets etc. The situation of consumers'
preferences to the various means of advertisement is presented in table below:

Table-4.10
Consumers' preferences to the means of advertisement

Description No. of respondents Percent

Newspaper 10 12.50
Magazines 2 2.50
Television 63 78.75
Radio 4 5.00
Pamphlets & Posters 1 1.25
Total 80 100
Source: Field survey-2009

The above statistics presents the number of respondents preferring the means of advertisement.
Out of the total 80 respondents, majority of respondents, 78.75% responded that they prefer the
television whereas rest of the respondents opined that they prefer Newspaper, Magazine, Radio
and Pamphlets & Posters by 12.50%, 2.50%, 5.00%, 1.25% respectively.

From the above analysis it can be concluded that television advertisement seems to be the most
popular means or media which plays crucial role to enhance the market of the goods
manufactured.

61
 Figure 4.9
Consumers' preferences to the means of advertisement

5% 1% 13%
3% Newspaper
Magazine
Television
Radio
Pamphlets
78%

4.11 Impact of repeated advertisement to attract the consumers' attention

The repeated advertisement of various products through various means of advertisement

sometimes attracts the customers' attention whereas sometimes that fails to attract. The impact
of the repeated advertisement to attract the consumers' attention is presented in table below:

Table-4.11
Impact of repeated advertisement to attract the consumers' attention
Description No. of respondents Percent

Attract consumers attention 50 62.50

Do not attract consumers attention 30 37.50

Total 80 100.00
Source: Field Survey-2009

The above figure shows the number of consumers being attracted by repeated advertisement in
the media (i.e. through television). Among the total 80 respondents, most of the respondents,
62.50% (i.e. 50 out of 80) were found to be attracted by the advertisements broadcast in the
Television whereas 37.50% respondents ( 30 out of 80) were seemed to have no effect of the

62
advertisement. It shows that most of the advertisements are proved to be fruitful to lure the
consumers.

4.12 Consumers response to the adequacy of advertisement

Consumers can receive various useful information regarding the product's usefulness or
benefits, using techniques and its effects on their daily life etc. from the advertisement. The
situation of consumers' response regarding the adequacy of advertisement is presented in table
below.

Table 4.12
Consumer’s response to the adequacy of advertisement
Description No of respondents Percent

Seek for additional information 65 81.25

Adequate information 15 18.75

Total 80 100

Source:Field survey 2009

Therefore, from the above analysis it can be concluded that majority of consumers seem
willing to add additional information in the advertisement so that the advertisement would be
adequate enough to accomplish the demand of the customers

4.13 Consumers' preference to the product having same price and quality

Consumers may give different preference to the product having same price and quality due the
effect of advertisement. The results of consumers' preferences towards such product due the
impact of advertisement can be presented as follows:

63
 Table-4.13

Consumers' preference to the product having same price and quality

Description No. of respondents Percent

Advertised product 70 85
Not advertised product 10 15
Total 80 100
Source: Field Survey-2009

The above table shows the preference of consumers to the product having same price and
quality out of the total 80 respondents 85% respondents gives preference to the advertised
product whereas 15% respondents gives preference to non advertised product. It proves that
advertised products have good preference from the consumers.

4.14 Impact of advertisement on customer

Some advertisements create positive impact among the consumers regarding the advertised
product while sometimes it may fail for this. The results of survey on this regard are presented
in table below:

Table No: 4.14

Impact of advertisement on customers

Description No. of respondents Percent

Positive impact 65 81.25

No impact 15 18.75
Total 80 100.00
Source: Field Survey-2009
The above table shows the impact of advertisement on different customers. Among the total
respondents 81.25% respondents responded that advertisement could leave good impact upon
them about the advertised product whereas 18.75% respondents opined that advertisement

64
could not leave any impact upon them. It proves that advertisement has played important role
to leave positive impact towards the majority of people.

4.15 Role of Advertisements to make the purchase decision

Sometimes advertisement may play important role to introduce the product and influences for
purchase whereas sometimes it may fail for this purpose. The result survey in this regard is
presented in table below:

Table No: 4.15

Role of Advertisements to make the purchase decision

Description No. of respondents Percent

Indifferent 67 83.75
Purchase 5 6.25
Do not purchase 8 10.00
Total 80 100.00
Source: Field Survey-2009

The above table shows the role of advertisement to attract the consumers. From the analysis it
can be found that, out of the total 80 respondents, 83.75% respondents could not say whether
they decide to buy the product or not after they saw the advertisement broadcast in the
television and only a few percent of people i.e. 6.25% opined that they will purchase the
product after they saw the advertisement broadcast in the television however 10'% respondents
opinioned that they will not purchase. It proves that advertisement helped to the majority of
customers to recall the brands' name to a greater extent but the purchase decision is not fully
depends upon the advertisement.

65
4.16 Effectiveness of the advertisement of cosmetic product

The advertisement of the different cosmetic product sometimes reaches to the target group
while sometimes it may fails. The result of the effectiveness of the advertisement of cosmetic
good is presented in table below:
Table No: 4.16
Effectiveness of the advertisement of cosmetic product

Description No. of respondents Percent

Seen 80 100
Not Seen 0 0
Total 80 100.00
Source: Field Survey 2009
Table-16shows the effectiveness of advertisement of cosmetic product. From the analysis of
table it can be concluded that 100 percent of the respondents are familiar with the
advertisement of cosmetic product which indicated that the advertisement is very much
effective to introduce the product to the customer.

4.17 Effectiveness of the advertisement of Vatika Shampoo

Different customers take advertisement of cosmetic product like Vatika Shampoo differently.
The result of the advertisement of Vatika Shampoo is presented in table below:

Table No: 4.17

Effectiveness of the advertisement of Vatika Shampoo
Description No. of respondents Percent
Seen 80 100
Not Seen 0 0
Total 80 100.00
Source: Field Survey-2009

The above table shows that out of the total respondents all respondents opinly said that they
saw the advertisement of Vatika Shampoo and they are familiar with this product which also

66
indicates that the advertisement of Vatika Shampoo is very much effective to familiarize the
product to the various customers.

4.18 Factors influence to buy the product (Vatika Shampoo)

Many factors influences to the customers to buy the cosmetic product like Vatika Shampoo.
The results of the factors that affect the customers to purchase the Vatika Shampoo are
presented in table below:
Table No: 4.18
Factors influence to buy the product (Vatika Shampoo)

Description No. of respondents Percent

Quality 52 65%
Price 16 20
Skim 8 10
Advertisement 4 5
Total 80 100.00
Source: Field Survey-2009

The above table shows the factors which influence customers to buy the product. From the
table, majority of the respondents (65%) responded that they are influenced by the quality of
Vatika Shampoo to purchase this product where as 20 percent are influenced by price, 10
percent are influenced from the skim attached in the product and rest 5 percent are influenced
to buy from the advertisement of the particular product.

Major Findings of the Study.

The major findings of the study are as follows:

 Majority of the respondents (62.5%) below age level of 15 years preferred musical
advertisement mostly and it is followed by 18.75% of good wording whereas 6.25%
of respondents prefer simple advertisement and 12.5% of respondents prefer all the
advertisement i.e. musical, good wording, and simple. The reaction of the people

67
 those fall in age group of 16-25 shows that majority of the respondents 56.25% like in
the musical programs, 31.25% of people like the good wording whereas no one likes
simple advertisement of this age group and 12.5% of people like all types of
advertisement. In the context of age group between 26-35, majority of the
respondents 43.75% prefers advertisement having good wording and it is followed by
35.5% respondents of musical programs. In case of the age group of 36-45 majorities
of the respondents 56.25% prefers the advertisement having good wording it is
followed by the respondents like the musical programs of 31.25% while in relation to
the age group above 45 years majority of them like the musical advertisement
947.5%) and it is followed by good wording (38.75%),

 In context to the education- wise preferences to the advertisement indicates that most
of the lower educated respondents preferred to musical advertisement. Regarding
musical advertisement, 68.75% of people of below S.L.C. prefer such programs while
in case of respondents having S.L.C. level majority of them 56.25% like musical
advertisement. Similarly, in case of graduate group they give first priority in good
wording like (50%) and it is followed by 37.5% of musical advertisement. Likewise,
majority of above graduate people like good wording (56.25%) and it is followed by
31.25% respondents who prefer musical advertisement and the most of people who
are uneducated show their attitude to musical advertisements (62.5%).

 In case of the preference of advertisement according to gender majority of the (50%)

male respondent found they like the musical advertisements and it is followed by
37.5% respondents who prefer good wording. Regarding female respondents, 62.5%
of respondents like the musical advertisements and it is followed by 25% of
respondents who like the good wording. From the analysis it can. be concluded that
the female consumers seems to give more priority to musical advertisement than the
good wording advertisement than the male. Altogether, they preferred the musical
advertisements than the good wording advertisements.

68
 In relation to the television watching habits, majority of the respondents (80%) found
to have the habit of watching television. From the comparison of male and female
respondents, the percentage of women respondents for watching television seems to
be higher than male respondents.

 The results regarding the consumers' opinion on advertisement indicated that majority
of the respondents of the age group below 15 (56%) found to be a passive television
audience i.e. they just watch the television. Likewise, among the respondents
belonging to the second age group of 16-25 years half of respondents (50%) are
conscious with the meaning of advertisement. In case of third age group i.e. 26-35
years majority of respondents (56.25%) were exciting about the advertisement and in
case of fourth age group of 36-45 years 43.75% respondents were found to be
conscious about the meaning of advertisement and majority of the respondents are not
highly interested to the advertisement. Similarly, in case of last age group of above 45
years 37.5% were conscious with the simple meaning of advertisement whereas
majority 56.25% respondents are found to be mere audience.

 In relation to the reaction of the respondents in term of their educational status the
majority of the respondents (68.75%) having the qualification below S.L.C.are
seemed to be mere audience. In the second group having educational degree above
S.L.C. only 31.25% respondents tries to know what advertisement meant while
majority of them (56.25%) were only audience. The third group having graduate
degree majority of the respondents 56.25% found that they are conscious to the
meaning of advertisement. Similarly, in the fourth age group i.e. having qualification
above graduate degree majority of (62.5%) respondents were found to be aware
about the meaning and in case of uneducated respondents 56.25% respondents wanted
to know what advertisement meant. From the analysis it can be concluded that the
majority of the forth respondents group is found to be particular on the meaning of
advertisement and the second and the third groups were found to be highly curious
about the advertisement whereas the first group was found to be dull audience.

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 In subject to the gender wise reaction of advertisement most of the male (72%)
respondents viewed that they were particular only to the meaning and in case of
female population majority (77.5%) of the respondents were found to be concerned
with meaning of advertisement. From the above data, it can be concluded that female
respondents seems to be more concerned with the meaning of advertisement whereas
majority of male population is found to be interested to the advertisement

 In relation to the effect of advertisement on consumers' purchase decision majority

(50%) respondents opened .that they became customer of the product because of their
need not due to the effect of advertisement whereas 43.75% customers were found to
support both of the reasons. Thus, from this result it found that majority of the
respondents used the particular product to fulfill their needs.

 In context to the consumers preferences to the advertise product or not advertise

product majority of the respondents (81.25%) responded that they prefer the
Frequently advertised product. From the analysis it is found that most of the
consumers give the priority or preference to the frequently advertised product than
not advertise product.

 In relation to the consumers preference to the means of advertisement majority of

respondents 78.75% responded that they prefer the television and rest of the
respondents prefer Newspaper, Magazine, Radio, Cinema, Pamphlets and Posters.
From the above analysis it is found that television advertisement seems to be the most
popular means or media which plays crucial role to enhance the market of the goods
manufactured.

 In subject to the impact of repeated advertisement to attract the consumers' attention

most of the respondents, 62.50% were found to be attracted by the advertisements
broadcast in the Television. It shows that most of the advertisements are proved to be
fruitful to sure the consumers.

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 In relation to the consumers' response "to the adequacy of the advertisement, majority
81.25% respondents want some more information to be added in the advertisements
which indicate that the information included in television advertisement are not
sufficient to influence the consumer and they are willing to add additional
information in the advertisement so that the advertisement would be adequate enough
to accomplish the demand of the customers.

 In subject to the preference of consumers to the product having same price and
quality, most of the respondents (85%) gives preference to the advertised product as
compare to non advertise product though they are similar in nature. It proves that
advertised products have good preference from the consumers.

 With respect to the impact of advertisement on different customers out of the total
respondents most of the respondents 81.25% responded that advertisement could
leave good impact upon them about the product. It proves thatadvertisement has
played important role to leave positive impact towards the majority of people.

 With respect to the role of advertisement to attract the consumer, majority of the
respondents (83.75%) opined that advertisement helped to the customers to recall the
brands' name to a greater extent but tile purchase decision is not fully depends upon
the advertisement.

 With context to the effectiveness of advertisement of cosmetic product, all

respondents (100 percent) are familiar with the advertisement of cosmetic product
which indicated that the advertisement is very much effective to introduce the product
to the customer.

 In relation to effectiveness of the advertisement of Vatika Shampoo out of the total

respondents all respondents (100%) opined that they saw the advertisement of Vatika
Shampoo and they are familiar with this product which indicates that .The

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 advertisement of Vatika Shampoo is very much effective to familiarize the product to
the various customers.

 In relation to the factors which influence customers to buy the product majority of the
respondents (65%) responded that they are influenced by the quality of Vatika
Shampoo to make the purchase decision of the product.

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 CHAPTER-FIVE
SUMMARY, CONCLUSION & RECOMMENDATIONS

5.1 Summary

Advertising presents the most persuasive possible selling message to the right prospects for the
product or service at the lowest possible cost. This is a professional definition, which
emphasizes that advertising should be planned or created to achieve the most fruitful result for
the least costs. The main objective of advertising is to sell. But unlike the salesman who sells in
a face- to- face, or even voice to voice situation, advertising sells in a broadcast fashion to
numbers of prospects whose identity may or may not be known, and who may be close at hand
or at a distance. The message is reached to the large number of prospective buyers at a time.
Advertising has this remarkable flexibility and range of operation. This versatile and flexibility
of the advertisement does have to. be used intelligently. Thus lacking in Nepal. In this regard
the present study will be helpful. Before there is any expenditure on advertising, there is must
necessary at first to be an assessment of the likely turn, and one method or medium should be
judged against another on a cost benefit analysis. This thesis surveys the impact of television
advertising on consumer behavior. This study will be very important for the advertiser. It will
help them to prove their adverting policy.

In Nepal, advertising is growing at about 15 percent per annum. Advertising is widely used by
business, government and social organization. Banks extensively use or issue notices for
repayment of overdue loans. Now a days they also advertise their different products. The use of
advertisement by private airlines is increasing every year. However the impact of
advertisement to the various consumers is unknown. Thus the study to analysis the impact of
Television advertisement on consumer's behavior is very necessary.

The main objectives of the study is to analysis the impact of television advertisement consumer
behaviour with reference to cosmetic product but the specific objectives is a) to examine the
consumers preferences on television advertisement (b) to identify the consumers reactions to

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the television advertisement (c) to examine the popularity of the television advertisement (d) to
analysis the effectiveness of the advertisements of cosmetic products (e) to examine the factors
that influence to buy cosmetic product.

Advertisement is one of the most important components to influence consumers for influence
them familiar about the product. The study regarding the impact of television advertisement in
consumers' behaviour is perhaps in first in Nepal. To achieve the objectives of the study
required data are collected from primary sources through questionnaire. In total 80
questionnaires covering the differing age groups, gender, and educational background are
collected and various statistical and mathematical tools are used to analysis the data to achieve
the objectives of the study.

5.2 Conclusion

According to the findings of the analysis section it can be concluded that majority of the people
have television watching habits and out of them women are more curious in television then
men which indicates that television advertisement is more popular advertisement than all other
types of advertisement but most of them just watch the television rather than to know any new
information. In addition to this majority of the people of different age groups as well as
different educational class gender prefers to the musical programs as compare to the other
types of television ,programs which indicate that musical programs are more popular among
the people rather than other programs. Similarly, majority of the people prefers tire product
which is frequently advertise rather than not advertise product though they are same nature's
product but most of them purchase the product due to their necessity not due the influence of
advertisement. like wise, the advertisement of cosmetic product like shampoo is very much
effective to make customers familiar about the product, but mainly they are influened from the
quality of the product rather than from the advertisement. In conclusion it can be concluded
that television advertisement seems to be the popular means or media which plays crucial role
to enhance the market of the goods manufactured.

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 5.3 Recommendations

On the basis of the findings of the study, following suggestions or recommendations are
recommended;

1. The study shows that majority of respondents of different age groups and various educational
backgrounds prefer musical programs rather than other programs. So, the producer as well as
advertiser either makes their advertisement in musical form or they should broadcast the
advertisement in musical program.

2. The study shows that majority of the respondents have television watching habits and it is more
popular with women consumers. So, the advertiser and producer should give preference to the
television advertisement by focusing more to the women advertisement. .

3. The analysis shows that the information included in advertisement are not sufficient and
majority of the respondents are willing to get the additional information from the advertisement
regarding the various aspects of the product. Thus, advertise manufactures and producer should
include sufficient information so that consumer can be satisfied regarding the matters.

4. . The Study indicates that most of the consumers prefer advertise product rather faa not
advertise product and it also indicate that advertisement attract the of the consumer. Hence, all
manufactures should advertise their product to expand the market share.

5. The study indicate that the advertisement of any product leaves the good impact with consumer
behavior regarding the product but to some extent their purchase decision is depends upon the
need of the consumers also so while advertising the product all manufactures and advertiser
should try to create the necessity of the product through effective presentation of product and
product related information in advertisement.

6. The advertisement of cosmetic product is very much effective to leave a positive impact upon

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consumer regarding the product and majority of the respondents prefer the quality of the product
rather than other variables. So. All manufactures of cosmetic product should produce a product
having good quality and advertise their product effectively which helps to increase their market
share rapidly.

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 APPENDIX-1

QUESTIONNAIRE

A Survey on impact of television advertisement on consumer’s behavior for cosmetic

product.

Dear Respondents,

I am collecting the data concerned with “ A Study on Impact of Television Advertisement on

Consumer Behavior” in Cosmetic Product with reference to Sun Silk Shampoo for the

research work in partial fulfillment of the requirement for the degree of master of business

studies (M.B.S.) and it would be great value of your help in this research work, if you help by

filling up the following questionnaires.

Name:- Address:- Age:-

1. What kind of advertisement do you prefer on Television generally?

a. Musical b. Good Wording c. Simple

d. All of the above

2. What is your reaction when advertising comes from the Television?

a. Switch off the Television
b. Try to know what it want to say
c. Curious about advertising
d. Just watch the advertising

3. Do you generally watch the Television advertising?

a. Yes b. No

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4. Why you buy a product because of……………………………………………
a. Advertisement induces to buy
b. Need it
c. Both of them

5. What product do you prefer to buy?

a. Frequently advertised
b. Not advertised

6. Does repeatition of an advertisement attract your attention?

a. Yes b. No

7. Have you seen cosmetic advertisement?

a. Yes b. No

8. Have you seem advertisement of Vatika Shampoo.

a. Yes b. No

9. What factor influences you to buy that product?

a. Quality
b. Price
c. Skim
d. Advertised
e. Others

10. Does most of advertisement fulfill the wants of people?

a. Yes b. No

11. If you find an advertisement more interesting then what the next step you do?
a. I look for more information about the advertisement.
b. What I received it is enough for me.

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12. If there are same kinds of products in the market in terms of quality and the price,
which one would you buy?
a. Advertised b. Not advertised

13. Have you bought any product after getting information from advertisement?
a. Yes b. No c. Cannot say

14. Would you tell me your educational status?

a. Below S.L.C
b. S.L.C
c. Graduate
d. Above Graduate
e. Uneducated

15. Which types of advertisement would you prefer?

a. Newspaper c. Radio e. Television
b. Magazine d. Pamphlets

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