Impact of Advertisement on

Consumers Buying Behavior

INDIVIDUAL BRM REPORT

Smruti Ranjan Patnaik | SEM-II | Sec-C | 17BSP2782

Impact of Advertisement on Consumers Buying Behavior

CONTENTS
INTRODUCTION .......................................................................................... 2
PROBLEM STATEMENT ............................................................................. 3
OBJECTIVE ................................................................................................... 3
RESEARCH DESIGN .................................................................................... 3
SCALE OF MEASUREMENT ...................................................................... 4
ANALYSIS AND INTERPRETATION ........................................................ 4
Chi-Square ................................................................................................... 4
Descriptive analysis ..................................................................................... 6
ANNOVA .................................................................................................... 6
CORRILATION........................................................................................... 7
APPENDIX ..................................................................................................... 8

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Impact of Advertisement on Consumers Buying Behavior

INTRODUCTION
Unlike old times the Advertisement industries are booming. The quality of advertisement
has increased and has impacted various kinds of businesses. The traditional advertisement
has shifted from mere it is obvious that billions of rupees are being spent on advertisement
so there must be some driving force that must be powering these much spending. The
driving force is the customers. This research is about finding the actual cause, weather
customers are being driven by advertisements. For the purpose, it proceeds to analyze the
impact of advertisements in influencing the consumer’s attitude to purchase the durable
products like Television and Refrigerator, etc. Today, most of the advertisements come
with ‘celebrity endorsements’ which act as a credible means of spending money. This could
be for the reason of their social standing. People want to wear the “right” clothes, drink the
“right” beverages and use the “right” fragrances and buy “right” durables. Studying the
attitude of consumers, it can be stated that if a consumer observes messages for two
different firm’s products, one product’s message containing a better advertisement and the
other not, believes the better advertisement’s product will definitely have more features
and so be of higher value.

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Impact of Advertisement on Consumers Buying Behavior

PROBLEM STATEMENT
It all starts with, “If the prediction are right, this product would be a hit”. Advertisement
industry gambles with each and every advertisement they produce as huge amount of
capital are being spent while producing them. In 2017, Indian advertising industry was
estimated to be Rs. 63,000 crores (US$10 billion) with both print and TV share of about
38-40%.

Similarly in customer prospective, advertisement would be effective if it is served well.

So there are lots of problem relate to presentation of advertisement. This let to my
research with 3 basic objectives.

OBJECTIVE
As we know that huge amount of capital is being spent in advertisement industry, I have
considered two major objectives for this survey.

 Impact of advertisement change in preference of the consumer.

 Effectiveness of advertisement media.
 Consumer preference of in advertisement.

RESEARCH DESIGN
For this particular case, I considered expletory research. So to conduct this research, I
prepared a questionnaire to collect the primary data from the respondents which had a set
of questions and Likert scale.

So this is the brief description of the research design.

 Type of Research: Expletory Research, because we need to explore what are the
factors people see while watching any kinds of ad.
 Sources of Data: Primary data, because general public can well explain what they
particularly like in an advertisement.
 Technique used to collect data: I used questionnaire for simple random
sampling where mail was sent to every students in order to collect data. Every
students got equal opportunity to fill the form and submit it.
 Sample Frame: Sample frame for this survey was considered the whole of IBS-
B.
 Methods used to analyze the data: As our data collected is qualitative I used
Chi-Square method and multiple regression analysis for all the 3 objectives
mentioned in the above test.

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Impact of Advertisement on Consumers Buying Behavior

SCALE OF MEASUREMENT
In this questionnaire we have used Nominal, Interval and Likert scale. The questionnaire
is present in Appendix.

ANALYSIS AND INTERPRETATION

CHI-SQUARE
H0: Advertisement doesn’t has any an impact on consumer buying behavior.
H1: Advertisement has impact on consumer buying behavior.

Interpretation of the table below:

 I got 28 responses from the questionnaire with no missing data.
 The significant value was found to be greater than 0.05 or 5%, so H0 is rejected
and H1 is accepted.
Conclusion: Advertisement has impact on consumer buying behavior.

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Are you influenced by Ads 28 100.0% 0 0.0% 28 100.0%
on any of the above
sources? * Is your
purchases are influenced by
advertisements?

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 Impact of Advertisement on Consumers Buying Behavior

Are you influenced by Ads on any of the above sources? * Is your purchases are influenced by advertisements? Cross
Tabulation
Is your purchases are influenced by advertisements?
Strongly Strongly
Disagree Disagree Neutral Agree Agree Total
Are you influenced by No Count 1 2 3 3 0 9
Ads on any of the above Expected Count .6 1.0 3.9 3.2 .3 9.0
sources? % within Are you
influenced by Ads on any 11.1% 22.2% 33.3% 33.3% 0.0% 100.0%
of the above sources?
% within Is your
purchases are influenced 50.0% 66.7% 25.0% 30.0% 0.0% 32.1%
by advertisements?
% of Total 3.6% 7.1% 10.7% 10.7% 0.0% 32.1%
Yes Count 1 1 9 7 1 19
Expected Count 1.4 2.0 8.1 6.8 .7 19.0
% within Are you
influenced by Ads on any 5.3% 5.3% 47.4% 36.8% 5.3% 100.0%
of the above sources?
% within Is your
purchases are influenced 50.0% 33.3% 75.0% 70.0% 100.0% 67.9%
by advertisements?
% of Total 3.6% 3.6% 32.1% 25.0% 3.6% 67.9%
Total Count 2 3 12 10 1 28
Expected Count 2.0 3.0 12.0 10.0 1.0 28.0
% within Are you
influenced by Ads on any 7.1% 10.7% 42.9% 35.7% 3.6% 100.0%
of the above sources?
% within Is your
purchases are influenced 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
by advertisements?
% of Total 7.1% 10.7% 42.9% 35.7% 3.6% 100.0%

Chi-Square Tests
Value df Asymptotic Significance (2-sided)
Pearson Chi-Square 2.707a 4 .608
Likelihood Ratio 2.860 4 .582
N of Valid Cases 28

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Impact of Advertisement on Consumers Buying Behavior

a. 8 cells (80.0%) have expected count less than 5. The minimum expected count is .32.

DESCRIPTIVE ANALYSIS
We can see in the below table that Standard Deviation (0.945) is not greater then mean
(3.18) value so we can conclude that, Advertisement has influence on purchasing
behavior of customers.

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Is your purchases are
influenced by 28 1 5 3.18 .945
advertisements?
Valid N (listwise) 28

ANOVA
H0: The purchase behavior is influenced by advertisement.

H1: The purchase behavior is not influenced by advertisement.

ANOVA
Zscore: Is your purchases are influenced by advertisements?
Sum of Squares df Mean Square F Sig.
Between Groups 2.869 3 .956 .951 .432
Within Groups 24.131 24 1.005
Total 27.000 27

Interpretation for ANOVA table shown above

 Here we can see that the calculated value is 0.951 and the significance value is
0.432.
 Here the significance value is greater than 5% which means H1 is rejected and H0
is accepted.
Conclusion: The purchase behavior is definitely influenced by advertisement.

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Impact of Advertisement on Consumers Buying Behavior

CORRELATION

Correlations
Finally, My
general opinion
Is your on Ads "Does it Zscore: Is your
purchases are Influences purchases are
influenced by Consumer influenced by
advertisements? Behavior?" advertisements?
Is your purchases are Pearson Correlation 1 .269 1.000**
influenced by Sig. (2-tailed) .167 .000
advertisements? N 28 28 28
Finally, My general opinion Pearson Correlation .269 1 .269
on Ads "Does it Influences Sig. (2-tailed) .167 .167
Consumer Behavior?" N 28 28 28
Zscore: Is your purchases Pearson Correlation 1.000** .269 1
are influenced by Sig. (2-tailed) .000 .167
advertisements? N 28 28 28
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation for Correlation table

 From the above table we can say that advertisement influences consumer behavior
is 0.269 which means it positively correlated.

Final conclusion regarding the objectives of our Research:

Based on the above analysis we can conclude that consumer do get influenced by
advertisement.

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Impact of Advertisement on Consumers Buying Behavior

APPENDIX
Questionnaire

1. Respondents’ Profile
Enrollment no. Name Age Gender Section

2. Do you watch TV/Internet?

Yes No
3. What’s your ethnic group?
North Indian East Indian West Indian South Indian
Central Indian
4. How much time do you spend in front of TV/ computer?
<30 Mins 30-60 mins >60 mins

5. Do you read newspapers/ magazines?

Yes No
6. _________ attracts you towards advertisement on TV/ Newspapers/ Magazines/
internet.
Color Pictures Offers Content
7. Are you influenced by TV/ Newspaper/ Magazine/ internet ads?
Yes No
8. What influences your purchase decisions?
Advertisement Friends Parents Self-influence
9. Most of your purchases are influenced by advertisements
Strongly Strongly
Disagree Agree
10. What product attracts the most in an advertisement?
Product Celebrity Appearance Story-line of the ad
Special Effects
11. Finally, my general opinion on ads “Does it influenced consumer behavior?”
Strongly Strongly
Disagree Agree

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