2K18MBA119 - Saurav Kumar Sah
2K18MBA119 - Saurav Kumar Sah
2K18MBA119 - Saurav Kumar Sah
Submitted By
Saurav Kumar Sah
2K18/MBA/119
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CERTIFICATE
This is to certify that that the Project Report titled “The Impact of
Advertising on Consumer Purchase Decision ” is an original and bonafide
work carried out by Mr. Saurav Kumar Sah of MBA 2018-20 batch and
was submitted to Delhi School of Management, Delhi Technological
University, Bawana Road, Delhi-110042 in partial fulfilment of the
requirement for the award of the Degree of Masters of Business
Administration.
Place: Delhi
ii
DECLARATION
The information and data given in the report is authentic to the best of
my knowledge.
This report is not being submitted to any other University for award
of any Degree, Diploma and Fellowship.
Place: Delhi
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ACKNOWLEDGEMENT
Last but not the least I would like to express my profound gratitude to each
and every respondent of the survey who have helped me complete this
research. Also, I would like to thank various researchers whose work have
helped me to do the research in the right direction.
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EXECUTIVE SUMMARY
Consumer purchase decision involves all the decision that is made by the
customer before purchasing the products like taste, preferences, choice,
brand appeal etc.
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TABLE OF CONTENT
1. Introduction……………………………………………………………... 1
1.1 Background…………………………………………………………. 1
1.2 Problem Statements………………………………………………… 7
1.3 Research Questions…………………………………………………. 8
1.4 Research Objectives………………………………………………… 8
1.5 Significance of the Study……………………………………………. 9
1.6 Scope of the Study…………………………………………………... 9
2. Literature Review……………………………………………………….. 10
3. Research Methodology…………………………………………………. 16
Data Analysis……………………………………………………… 17
Findings and Recommendations..…………………………………. 32
Limitations of the Study…………………………………………… 33
5. Conclusion……………………………………………………………... 34
References……………………………………………………………… 35
Annexture…………………………………………………………….... 36
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CHAPTER ONE
1. INTRODUCTION
This chapter illustrate and describes about the background, statement of problem,
objectives of research, significance, scope and the organization of this study.
1
regarding disseminated through one or more media and is paid for by an identified
sponsor.”
From the definition above given by many authors we can conclude that it is basically
for the purpose of increasing the sale and through which profit can be maximised. It
also help the organisation to make consumer aware about the brand they are selling.
Whenever any company launches any new product or services the take the help of
advertisement to reach people.
Types of Advertisement
There are different types of advertisement out of which some are as followed:
Display Advertisement
This includes digital and newspaper ads. Digital advertising is an
updated version of newspaper advertisement; this is the same concept, only in
the form of the 21st century. This means buying advertising space on websites
that are of interest to the target audience. You can make text advertisement that
look basically the same as traditional media print ads, float banners above
website contacts, and even place wallpaper on the website background of your
product or service. We can see in the figure below that how London Gold
Company is using a hoarding for a display advertising.
Figure 1.1: Display Advertisement of London Gold
http://www.supremeoutdoor.com/digital.html
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Social Media Advertisement
Outdoor advert are one of the best way to promote your products. As
we know all outdoor advertisement has gone digital. It is very easy to advertise
on it. Outdoor advertisement are also done in buses, taxi, metros, e-rickshaw
etc. Many people travel from one place to another everyday so to grab the
attention of the customers, outdoor advertisement is the best way. Brand
recognition can be achieved very easily as it can easily be visible to the large
audience. The figure below shows how Nike is using an outdoor advertisement
to attract the consumers.
3
Figure 1.2: Outdoor Advertisement of Nike.
https://www.quora.com/What-is-outdoor-advertising-and-why-is-it-important
4
is very easy to find the likes and dislikes of the customers. The mail is sent for
those products which are demanded by the customers. Also various offers are
being provided to this audiences.
Personal selling is a way through which the sales man reaches to the
customer personally and explains the features about the product. They aim at
selling their products anyhow. The biggest advantage about this kind of selling
is that the customer can have a good look on the products and if they like the
product they can negotiate or else easily can say that they are not interested.
Video Advertising
This is done to engage your customer so that they are loyal to your
product or services. Video advertising can be done like the company can ask
their customer to post a video on their social media page and can say what they
like and what they dislike about the products. The company can give some
discount to those customer who posted a video so that they are encouraged and
can encourage other to post the video with the products. YouTube can also be
used as a source of advertisement.
Email Marketing
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Figure 3 and 2 shows that how companies are using billboards for the advertisement
purpose.
http://www.lamar.com/Tulsa/GetInspired/Creative/Tulsa-Bulleti-Pepsi-2017
https://www.emcoutdoor.com/case_subway.htm
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There are too many brand available in the market it is the choice of the consumer which
brand to buy. Advertisement plays an important role here in changing consumer
behaviour. It is advertisement which can attract customers toward there product.
“Majeed and Razzak (2011) studies that global business world is dynamic and
unstable. In this competitive world the competition had increased to great extent and
it had been become unmanageable for the organizations and companies for the
attraction and retaining of the potential and the actual customers. The most important
and prominent tool for any organization to attract the potential buyers for their
products was that of advertisement. They also investigate the effect of the television
advertising with the advertising related variables of celebrity endorsement and
repetition of ads on the consumers buying intentions in the detergent industry.
Moreover the impact of celebrity endorsement effect of advertisement was not seen
significant in the detergent advertisements because consumers relies more on the
quality of the detergents rather than the affective perspective of the celebrity
endorsement. As the consumer’s intention for the purchasing of the product through
repeated frequency of detergent ads was significant and insignificant of that of
celebrity endorsement construct, the researchers had proposed that the effect of
celebrity endorsement could be analyzed in the any other product industry rather that
detergent industry.”
Have you ever thought of how many advertisement you see every day? The
advertisement you see might be on television, you may have listen it on radio, or it
might have happened that while scrolling your social media you have been exposed to
an advertisement, it might have happened that while travelling from the bus or cab you
have seen big billboards at the side of the road.
There are many question that revolves around the relationship between the advertisers
and the targeted audience (the buyer of the product). Why different companies
advertise their product? Does advertisement helps in differentiate the two similar
product of different brand? Do advertisement help consumer to change their mind and
go for the product which they have seen in the advertisement? How much information
is correct which is shown in the advertisement? Do consumer have trust on the
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advertisement? What is the perception of consumer towards different advertisement?
So this project deals with finding out the impact of advertisement on the consumer
purchase decision.
c) What is the impact of celebrity endorsement and images that can be seen in the
advertisement?
e) What is the level of satisfaction a consumer get after purchasing the product
which are shown in the advertisement?
The main objective of this research is to find out if advertisement have an impact on
the purchasing decisions of consumers. Also, this research is keen to find out the upto
what extent this advertising affects the purchase decision.
1. To determine the extent to which consumers are affected by the information and
3. To look into some other reason behind the purchasing of the products.
4. To know which advertising media mostly attract the customers and reason behind
that.
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1.4 Significance of Study
This is really very important subject matter to find out and the conclusion will very
important for both the ad company and the customers. This will:
i. Inform customer that how advertisement try to attract customer to buy their
product or services.
ii. Provide information to the advertisers that which strategies are effective and
which are not effective.
iii. Warn customer that not all advertisement message are true some might provide
false information.
iv. Inform advertiser that which kind of advertisement can attract more number of
audiences towards purchasing of the products.
v. Helps to find out how many of the audiences turned out to be a customers after
seeing the advertisement.
The study is limited to the data that has been collected through google
questionnaire.
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CHAPTER TWO
2. LITERATURE REVIEW
Taylor and Weiserbs conducted a study on the relationship between publicizing and
consumption and total utilization in America. They found that there's a concurrent
relationship between publicizing and utilization but not in a unidirectional. They
concluded that promoting and utilization appear to work on each other.
Sharma and Sharma conducted a study on the effect of promoting on buyer conduct in
India. They considered 134 companies utilizing settled impact demonstrate of board
information investigation. They found that other than promoting, variables like
company’s brand, quality of the item and company’s notoriety influence deals of a
company.
Related chambers of commerce and Industry (2013) in India, conducted a study on the
affect of publicizing on customer buying practices. They found that tall increment in
utilization of beauty care products merchandise as a result of promoting. They
moreover found that men on normal spend more on restorative items than their female
partners and ascribed this increment to mindfulness made by the item.
Ghulan, Javana, Burham and Ahmed (2012) conducted a think about on the affect of
advertrising on shopper buying conduct in Pakistan. They inspected the relationship
between natural reaction and customer buying conduct. They utilized 200 individuals
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in twin cities of Pakistan as their test. They found that direct relationship exists
between the free factors and the subordinate variable. The result appeared that buyers
purchase those brands from which they are candidly connected.
Nawazish and Ahmed conducted a study on the affect of publicizing on buyer buying
conduct in Pakistan. They inspected how passionate reactions are created, after
observing viable notice they induced shoppers obtaining conduct. They utilized 300
test subjects for this think about. They found that the natural reaction and tangible
invigorated exercises spoken to within the promotion has impact and can indeed alter
the buying conduct of buyers. They found that enthusiastic and natural reactions have
noteworthy affect on shopper buying practices.
Advertising is a subset of promotion mix which is one of the 4 piece in the marketing
mix, comprising product, price, place and promotion. Advertising is a promotional
strategy used in creating product awareness in the minds of consumer to take
purchasing decision.
Numerous analysts depict customer conduct as the ponder of people or bunches and
the mental, enthusiastic and physical forms they utilize to choose, get, expend and
arrange of items and administrations, to fulfil needs and needs and the affect that these
forms have on shopper and society Krugman.
These issues have driven to the improvement of a few hypotheses to get it the buyer
obtaining choice handle. In other words, marketers can apply different jolts and watch
the conduct of customers but they cannot watch the consumers’ real thought forms.
This covered up data is considered to the dark box. In an endeavor to get a few
understanding, marketers consider shopper conduct (Futrell, 1999).
This consider subsequently is to examine the buyer buy choice and discover out on the
off chance that publicizing may be a deciding figure. In arrange to decide the variables
that impact the inclinations of the millennial era, an understanding of how consumer’s
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for the most part think and carry on in buying circumstances is crucial. Understanding
customer conduct and knowing clients have and never will be basic. Customers may
say one thing but do another (Engel et al., 1979).
Advertisers are constantly trying to define models on how advertising works. From
these models, they often try to pick meaningful communication objectives (Bovee et
al., 1995). These models show several phases of communication, progressing from
initial awareness up to the decision to make a purchase (Jones 1986).
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Models that can be used to describe consumer behaviour.
AIDA Model
The AIDA model was created by the American agent, E. St. Elmo Lewis, in 1898. The
first fundamental reason for existing was to upgrade deals calls, explicitly the
collaboration among merchant and purchaser concerning the item.
Lewis can be considered a pioneer when it comes to the utilize of logical strategies for
planning promoting and deals forms. At the same time, it was exceptionally vital to
Lewis to see publicizing as a sort of preparing that helped the recipient. Lewis’s
hypothetical clarifications of promoting hypothesis rested on broad encounter. He was,
for case, showcasing head at different companies and exhorted organizations as well
as companies included within the conception of promoting measures and campaigns.
He has shared his information within the frame of different distributions — both in
composed frame and in workshops at US colleges. His AIDA show can be seen as an
imperative bequest, since the equation is still utilized more than 100 a long time after
its to begin with appearance, for illustration in advanced promoting.
The AIDA model is based on four person stages that draw in interested parties who
are choosing on a item or benefit. The AIDA Demonstrate, which stands for Attention,
Interest, Desire, and Action.
https://en.ryte.com/wiki/AIDA
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Figure 2.2: AIDA model
https://www.researchgate.net/figure/The-AIDA-model-of-Lewis-1985-applied-to-
internet-marketing-4_fig23_267921545
The hierarchy of effects model is a model which tells promoters to form a promotion
in such a way that the client goes through all these six stages to be specific mindfulness,
information, enjoying, inclination, conviction and buy. It is made by Robert J Lavidge
and Gary A Steiner in 1961, the chain of command of impacts show recommends six
steps to shopper buying conduct.
https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/12173-
hierarchy-of-effects-theory.html
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“According to Barry (1987), the review of the advertising and marketing literature
leads to the conclusion that there is not one but many hierarchy of effects (Barry,
1987: 253). William J. McGuire (1969) is one of the proponents identified with the
hierarchy of effects model. McGuire presented a paper on the topic an information-
processing Model of Advertising Effectiveness to symposium on Behavioural and
Management Science in Marketing, at the University of Chicago. He identifies the
fact that it is necessary for an advertiser to place their advertising in the appropriate
media.”
In the hierarchy of effect model, the consumer goes through a number of processes
after being exposed to an advert. McGuire identifies the processes to be;
Attract attention
Showing Interest
Choosing
Memorising
Buying
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CHAPTER THREE
3. Research methodology
The data collected for the purpose of the study is primary data. Questionnaire has
been used for collecting the data. Altogether there are fifteen questions.
Hypothesis to be tested
The model
Hypothesis
Sampling Design
The unit of analysis was individual who uses various social media network.
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CHAPTER FOUR
Data Analysis
1. Gender
Gender
35%
65%
Male Female
The total number of response collected through distribution of questionnaire were 101,
out of which the male respondent were 66 and female respondent were 35. Majority of
respondent were from male. The ratio being 65:35 for male and female respectively.
The difference among the ratio will make our answer more obvious, which may not
have been possible in case were the ratio have been equal.
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2. Age Group
Age Group
1%
9%
15%
24%
51%
The response has been collected from various age group ranging from 15-40+years
old. Maximum response belongs to the age group of 21-25 years followed by 26-30
years age group, 36-40 years age group and 15-20 years age group respectively. Few
response were from 40+ year’s age group.
As the research has been done to know the impact of advertisement on the consumer
purchase decision so we need response from all kind of age group to reach the
conclusion, which has been followed as can be seen in the above graph.
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3. Profession
Profession
1
4
8
16
59
13
The response has been collected from various people who are into various profession.
As we can see in the above graph that most respondent are students and are of young
age group. The other respondent having most response after students are business,
corporate and financial services respectively. The remaining respondent are
unemployed and other category.
The information that we can gather from above data is that advertising has a great
impact on all kind of profession. Everyone follows the advertisement.
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4. Annual Family Income Level
22% 18%
29% 31%
The maximum number of respondent belongs to the family income between 2.5-5
lakhs annual income followed by the family income of 5-10 lakh and above 10 lakhs
family income group. Less number of respondent belongs to the family income group
of less than 2.5 lakhs income.
The reason behind collecting the respondent’s family income is to know the relation
between purchase decision and the impact of the advertisement on their purchase
decision.
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5. Have you ever been exposed to advertisements of any kind?
19%
81%
Yes No
The response has been collected to know whether the respondents are expose to the
advertisement or not. Maximum number of respondents selected the yes option and
very few respondents has selected the no options. Everyone nowadays are expose to
some kind of advertisement because it is present everywhere, where ever we go.
Advertisement has become a part of life.
What we can gather from above graph is that most of them are expose to the
advertisement of any kind. The information will helps us to know that how much the
respondent are influenced from those advertisement.
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6. Which advertising media gets your attentions?
50 52
40
30 32
20
10 13
3 1 0 0
0
Internet Television Newspaper Magzines Friends Billboards Radio
In today world of technology advertisement has reached next level, internet has
become the major influence. Every companies wants to advertise their product on
online platform media. As we can see in the above graph out of 101 respondents 52
respondents prefer to choose internet which has the maximum number as compared to
other media. Following television which has the second most number of respondents
and likewise newspaper, magazines and others respectively.
What we can gather from the above graph is that majority of the respondent get
attracted to the advertisement which are on internet following television, which has
the second highest number of respondents which is 32.
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7. Which time of the day are you often exposed to the advertisement?
25% 25%
18%
32%
The response has been collected to know that at which time of the day respondent are
exposed to the advertisement. Most number of the respondent are exposed to the
advertisement at the evening time, which covers 32%, followed by the morning and
late night which has 25% for both. 18% of respondent has said that they are exposed
to the advertisement at the time of afternoon which is the lowest as compared to other
options.
The conclusion that can be withdrawn from the above pie chart is that respondent are
exposed to the advertisement every time whether it be morning, afternoon, evening
and last night. The difference is very less between them.
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8. How often are you expose to the advertisement?
6%
31%
63%
This survey was collected to know about the respondents, exposed to the
advertisement. The survey has three options out of which respondent has to select one
out of it. The options were as follows:
Everyday
3-5 times in a Week
Once in two week
The above survey shows that most of the respondent are exposed to the advertisement
every day, which is 63 percent and 31 percent respondent choose three to five times a
week. Remaining respondent has selected the third option.
To conclude we can say that though many of them are exposed to the advertisement
everyday but still there are few of them fall under the second and third options
category.
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9. Please indicate your evaluation of the advertisements you have been
expose to.
25
20
15
27
10 22
16 14
5 11 11
0
Attractive Interesting Informative Professiona Entertaining Effective
Advertising can be done in various ways. It depends on product, and the organisation
that how they want their customer to remember their product. The advertisement can
be entertaining, attractive, interesting, informative, professional and effective.
The above question were asked by the respondent to know what they have found in
the advertisement, which they were exposed to. Maximum of the respondent said that
the advertisement were informative, followed by the second most number of
respondent has said that the advertisement was interesting. Then after the respondent
said that it was attractive, entertaining and professional.
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10. Do you believe in advertising message?
32%
1% 67%
Yes No Maybe
The answer to the question mentioned above, only 67% of the respondent has said
that yes they believe in advertising message though maximum number has selected
yes but 32% of the respondent has said maybe they believe in advertising message.
Only one percentage of the respondent has selected the option no.
From the above pie chart we can conclude that yes they believe in the advertising
message as maximum number has selected that option.
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11. Do you think advertising is important?
87%
Yes No Maybe
Out of 101 respondent 88 respondent has said that yes they think that advertisement is
important, if we see the percentage it is 87% those who said that advertisement is
important. The number of respondent who said no is zero, no respondent has selected
the option no and the remaining 13 respondent has selected the option maybe, that the
advertisement is important.
There are many product that are unknown to the people. Advertisement plays an
important role here because with the help of advertisement the product are known to
the customer, who are expose to those advertisement. So advertising is important
whether it be a new product or existing product. To increase the sale of the existing
product advertising agency comes up with new idea by which the sales can be
increased.
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12. Do you buy product based solely on advertisement?
9% 10%
32%
49%
Advertisement has a great impact on consumer. A good advertisement may lead to rise
in sales of product that has been advertised, whereas a wrong advertisement may lead
to fall in the demand of the product which has been advertised. There are many similar
product which are being sold by the competitors, advertisement plays a major role here
as advertisement can change the perception of the people about the product.
The respondent were asked whether they buy product based solely on the basis of
advertisement or not. Maximum of the respondent has said that they buy product
sometimes on the basis of advertisement. Thirty two percentage of the respondent has
said that they don’t buy product solely on the basis of advertisement. Likewise
remaining respondent has said yes the buy and they have also selected the option most
times which is the lowest as compared to the other remaining options.
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13. Have you purchased any products recently after coming across the
advertisement?
8%
24%
68%
Yes No Maybe
The question was asked to know whether the respondent is watching the latest
advertisement or not and whether they are influenced with those advertisement or not
to buy the product which they see on advertisement.
As we can see on the above pie chart that around 68 percent of the respondent has
selected yes option indicating that they have bought the product when they were
exposed to the advertisement. And also this is the maximum number as compared to
the other options. Only 24 percent of the respondent has selected the no option
indicating that they have not bought any new product while they were exposed to the
latest advertisement. Around 8 percent of the respondent has selected the option maybe
they have bought the product or not.
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14. Factors influence your purchasing of a product?
33% 35%
32%
This question is related to the above question where we have asked the respondent that
whether they bought a product or not after seeing the advertisement. So this question
was asked to seek answer what influenced them to buy the product. There is not much
difference in the percentage in all the options given above. Some of the respondent has
selected the option that they were curious about the product, some have selected that
it was a familiar product or brand and some have said that they were already planning
to buy that particular product. So it can be said that those who selected the third option
above had not that great impact on them of the advertisement, if they were not exposed
to the advertisement also they might have purchased that product. Whereas the other
two option have a great impact of the advertisement on the respondent. They may have
not bought that product if they have not come up with those advertisement.
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15. The level of satisfaction after purchasing.
0%
3%
26%
23%
48%
Whenever a customer buys a product the main thing that they want from the product
is satisfaction. If the customer is not satisfied he/she will never buy that product again
and also they will give negative reviews to other about the product. Though
advertisement helps in increasing the sales but to satisfy the customer the companies
has to make product according to their needs and demand then only the customer will
be satisfied.
The last question that was asked by the respondent in the survey was, the level of
satisfaction that they received from the product they have purchased.
The percentage of the respondents who were very satisfied from the product were 26,
the percentage of satisfied respondent were 48, neutral respondent were 23, unsatisfied
were only 3 percentage, and there were no very unsatisfied respondent. So it can be
said that the number of satisfied customer is higher than neutral and unsatisfied
customer.
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Findings
The data analysis presents enough evidence to reject the Null Hypothesis and
accept Alternate Hypothesis i.e. Advertising have a positive impact on the
purchase decision of consumer.
Recommendation
32
Limitation of the Study
The ratio of male and female respondent was 65:35 respectively. This may lead
to some biasness as the male ratio is higher than the female ratio which may
The fund and the resources were limited so the research was done with limited
The research does not claim that the response that has been collected from the
respondent is all true some of the respondent might not have provided the
Out of 101 respondent 59 of the respondent were students. The result may be
more inclined towards the students, which may lead to biasness of the result.
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CHAPTER FIVE
Conclusion
Advertising is not only thing through which consumer make their purchase decision
there are several other things. Though advertising act as a medium between the
customers and the organisations. Through advertising various message regarding the
product can be expressed. From my research and the responses that I gathered through
google form the conclusion that I reached is that yes advertising has an impact on the
purchase decision of the customers. As I have said earlier also that advertising alone
cannot influence customer decision, it is on the product i.e. how much satisfied is the
customer after purchasing the product. The product package, designee, quality etc. also
plays an important role here. The company should also focus on after sale service to
solve customer queries and record grievances.
Many companies spent their most income on advertising. The budget are also
separately allocated for advertising. Companies that invest most on advertisement are
PepsiCo, Coca-Cola, American Express, Procter & Gamble, General Motors, Walt
Disney, AT&T, Amazon etc. These companies spent around billions of rupees on
advertisement so that people buy their products and yes advertising has helped them
in increasing their revenue and the customer base.
So we can conclude that advertising is still one of the most important aspect by which
consumer can be attracted. Only the way of advertisement has changed like earlier
companies used to focus more on television and newspapers but now more focus is
given to the internet and digital media, but advertising still remains the integral part of
any company whether it be a new company or old company.
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References
1. https://www.abacademies.org/articles/a-study-on-the-influences-of-
advertisement-on-consumer-buying-behavior-7177.html
2. https://ijac.org.uk/the-impact-of-advertising-on-consumers-buying-
behaviour/
3. https://www.researchgate.net/publication/296204657_Impact_of_Adverti
sing_on_Consumers'_buying_behavior_through_Persuasiveness_Brand_Im
age_and_Celebrity_endorsement
4. https://www.projectclue.com/mass-communication/project-topics-
materials-for-undergraduate-students/the-impact-of-advertising-on-
consumer-buying-behaviour
5. Wikipedia.org
6. Various research papers
7. https://www.ukessays.com/services/example-essays/marketing/the-
impact-of-advertising-on-consumer-purchase-behaviour.php
8. https://thepolicytimes.com/coca-cola-spent-4-24bn-for-advertising-in-2019-
20bn-in-the-last-5-years/
9. https://www.businessinsider.com/10-biggest-advertising-spenders-in-the-us-
2015-7
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Annexure
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40
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