Impact of Radio Advertisement On Consumer Behaviour: (With Reference To Mayos Noodles)
Impact of Radio Advertisement On Consumer Behaviour: (With Reference To Mayos Noodles)
ON CONSUMER BEHAVIOUR
(WITH REFERENCE TO MAYOS NOODLES)
By:
SUMAN KUMAR NIRAULA
POST GRADUATE CAMPUS, BIRATNAGAR
T.U. Registration No: 7-1-3-1123-99
Biratnagar, Nepal.
March, 2009
TRIBHUVAN UNIVERSITY
POST GRADUATE CAMPUS
BIRATNAGAR
NEPAL
Tel. 021-526327, 522204
Ref. No……………..
RECOMMENDATION
Submitted by
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2
TRIBHUVAN UNIVERSITY
POST GRADUATE CAMPUS
BIRATNAGAR
NEPAL
Tel. 021-526327, 522204
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and found the thesis to be the original work of the student written according to
the prescribed format. We recommend the thesis to be accepted as partial
fulfillment of the requirements for
Master's Degree in Business Studies (M.B.S.)
VIVA-VOICE COMMITTEE
Date: ….…………………………………..
3
DECLARATION
I hereby declare that the work reported in this thesis entitled “Impact of Radio
Advertisement on Consumer Behaviour (With Reference to Mayos
Noodles)” submitted to Post Graduate Campus, Faculty of Management,
Tribhuvan University, is my original work done in the form of partial
fulfillment of the requirements for the Master of Business Studies (M.B.S)
under the strict supervision and guidance of Mr. Dev Raj Shrestha, Lecturer,
Post Graduate Campus, Biratnagar.
………………………
Mr. Suman Kumar Niraula
Researcher
T.U. Regd. No.: 7-1-3-1123-99
Date: …………………..
4
ACKNOWLEDGEMENTS
Finally, I feel indebted to all the authors whose works were cited during
the study. I am also thankful to the librarians of Post Graduate Campus,
Tribuhuvan University, Biratnagar, for providing necessary information for the
thesis.
Date: ………………
Biratnagar Suman Kumar Niroula
5
LIST OF ABBREVIATION
Abt. : About
Corr. : Correlation
Ed. : Edition
Hr. : Hour
Rs. : Rupees
T.V. : Television
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TABLE OF CONTENTS
Page
Acknowledgements
List of Tables
List of Figures
List of Abbreviations
Chapter I: INTRODUCTION
1.1 Background of the Study 1
1.2 Focus of the Study 4
1.3 Statement of the Problem 5
1.4 Objectives of the Study 6
1.5 Significance of the Study 6
1.6 Limitation of the Study 8
1.8 Organization of the Study 8
BIBLIOGRAPHY
APPENDICES
7
LIST OF TABLES
Page
Table No.
1: Gender wise sample collection 37
2: Educational wise sample collection 38
3: Age wise sample collection 38
4: Effectiveness of Media 39
5: Consumer habit of hearing Radio advertisement 40
6: Impact of advertisement on consumer 41
7: Impact of the frequency of the Advertisement 42
8: Need of consumer from advertisement 43
9: Consumer’s preference to the product having same price and quality 44
10: Age wise consumer preference on advertisement 45
11: Literacy wise consumer preference on advertisement 47
12: Preference of advertising according to gender 48
13: Age wise consumer’s reaction to the advertisement 49
14: Education wise reaction to the advertisement 50
15: Gender wise reaction to the advertisement 52
16: Factor that influence consumer to buy the product 53
17: Comparison cost of media 53
18: Sales and advertising expenses of company 54
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LIST OF FIGURES
Page
Figure 9: Consumer’s preference to the product having same price and quality 45
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CHAPTER-I
INTRODUCTION
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Human behavior is very complex process. Behavior is the sum total of
observable human activities. No two people always behave in the same way.
Advertisers must understand the customer's behavior and must present the
advertisement in such the way that persuades the people to buy the particular product.
Advertisers must understand how customer select, buy, use and dispose products.
They must know customer motivation.
Advertisement is the most important marketing activities in the modern world.
It is notable and easily identified form of promotion in international as well as
domestic marketing. The wings of globalization have increased its importance. It is
also a most widely used promotional mix. Advertising is a powerful communication
force highly visible and one of the most important tools of the marketing
communication that helps to sell the products, services, ideas, images, etc. It is a form
of mass communication, a powerful marketing tool, a component of economic system,
a means of financing the mass media, a social institution, an art form and an
instrument of business management.
A product, service or idea can be presented and promoted in a variety of ways
and among them advertising is one of the most acceptable tools. Advertising
influences consumer attitudes and purchase behavior in a variety of consolidated
manner. It has multiple objectives and roles in persuading the consumer. The
techniques of the advertising may be directed by one or more objectives of advertising
depending upon the nature of the product and situation.
Advertising is a part of every day life for every one, hence it is difficult to
escape them even if we never go through the television program or listen to the FM
radios or read newspaper or magazine. We would still be bombarded with the
advertisements trough billboards at the highways shopping complex, bus park,
crossway posters in the shops and offices and pamphlets in the wall. More than that
advertising is in the form of the leaflets too.
The American Marketing Association, Chicago, defines advertising as “any
paid form of non personal presentation of ideas, goods and services by an identified
sponsor.” An analysis of each element of this American definition follows:
Advertising may be in any form of presentation. It may be a sign, a symbol, an
illustration, an advertising message in a magazine or newspaper, a commercial on the
radio or on the television. Any form of presentation, which an advertiser imagines
will fulfill the requirements of an ad can be employed. Secondly it is defined as any
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paid form. Favorable publicity projects products, services or ideas in any media
because it is considered informative and useful for the audience. For publicity no
payment is made by the benefited organization. The paid aspect of the definition
reflects the fact that the space or time for an advertising message generally must be
bought. It has been defined as non personal also. This phrase excludes any form of
personal selling, which is usually done on a person to person or people to people
basis. Advertising is totally non personal, offering no personal interaction, delivered
through media and often viewed as intrusion. Of course, advertising may help the
sales person in his or her sales effort.
Goods, services, and ideas for Action: It is well known that advertisements are
employed to communicate information about products and services. Most definitions
neglect the use of advertising to promote ideas. The post office advertisement to
promote the use of house number in any city viz Biratnagar for faster delivery of
letters is an example of selling an idea for action.
Openly paid for by an identified sponsor: This means that advertising is
openly paid for. The sponsor is identified by his company’s name or brand name or
both. If in an ad, the sponsor is not identified and it is not paid for its use of media in
which t has appeared then the message is considered to be publicity.
“Advertising is any paid form of non-personal presentation and promotion of
ideas, goods or services by an identified sponsor.” (Kotler:2000:578)
Advertisement is an announcement to the public of a product, services or ideas
through a medium to which the public has access. The medium may be print
(newspaper, magazine, posters, banners and hoardings), electronic (radio, television,
video, internet, cinema) or any other. An advertisement is usually paid for by an
advertiser at rates fixed or negotiated with the media. It is a form of persuasive
communication with the public.
Generally the aim of advertising is to sell a product (toothpaste, tea, perfume,
soap, car) or services (restaurant, tours, entertainment), but there are also advertising,
in its modern sense is the persuasive force that makes use of mass communication
media and is aimed to changing customer attitude or patterns in a direction favorable
to the advertiser.
Advertising creates the awareness in the mind of the consumer and it
motivates the consumer to purchase the product or we can say that actual purchase
occurs as a result of advertising but in reality, many other factors also affects on it.
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Sometimes advertising can do its job and bring the customer to the retail outlets, but if
the retail outlet doesn’t have products in stock, purchase may not occur. Advertising
stimulates the potential buyer to go to the store to buy actual advertised products. In
general, advertising is done in expectation of tangible gains, such as favorable
attitudes, better image of the firm and increased sales. Marketing manager decides the
techniques of advertising depending upon the situation and also blend all promotional
tools- advertising, publicity, sales promotion and personal selling to arrive at a right
mix. Each of the promotional tools has got unique characteristics and is
complementary.
Compared to other forms of promotion and persuasion advertising has
dominant role in any business organization. Advertising can touch and influence a
large number of consumers at given period of time. Besides, it can be used in many
forms, used for variety and occurs in several media. Advertising fulfills all objectives
undertaken by promotion. It can substitute for personal selling and it can be a
complement to personal selling also. Without advertising ‘promotional strategy of any
business organization becomes less effective and most often ineffective. Thus the role
of advertising cannot be ignored in the business world.
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The main focus of this study is to find out how advertising affects the behavior
of the people in buying different types of commodities. Many important decisions
have to be made before undertaking the advertising program. It is certainly one of the
most important and complex decision facing business executives. Major decision
areas in developing advertising program include setting the advertising objectives,
deciding on the advertising effectiveness. Human behavior is very complex process.
Behavior is the sum total of observable human activities. No two people always
behave in the same way. Advertisers must understand the customer’s behavior and
must present the advertisement in such a way that persuades the people to buy the
particular product. Advertisers must understand how customer select, buy, use and
dispose products. They must know customer motivation.
In this paper the researcher’s prime aim is to study the relationship on
consumer’s attitudes, credibility towards advertising and its subsequent effect on
consumers’ buying behaviors.
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increasing popularity. Entry of multinational advertising companies made Nepalese
advertising world creative and competitive than ever before.
In Nepal, there are various newspapers available with nationwide circulation,
such as, The Kantipur Daily, The Kathmandu Post, Nepal Samacharpatra, Rajdhani
Daily, Gorkhapatra, The Himalayan, The Rising Nepal, The Annapurna Post, etc.
Many other daily, weekly, fortnightly, and monthly magazines such as (Himal, Nepal,
Nari, Samaya, The Nation, etc.) with nation-wide circulation are also available.
Similarly, Radio/FM broadcasting as well as the TV channels are also growing in
numbers rapidly day by day, which makes the advertising easier to be reached to the
ultimate users of the products. So, there is problem of which media to choose for
effective advertising. This study tries to find out the effectiveness of advertising on
FM broadcasting.
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Chapter two is dividend to review of previous theories or conceptual from
work and review of the major studies in general. It’s mainly content theoretical
analysis and view related pertinent literature available.
Chapter three describes the research methodology employed in the study. This
chapter deals with the research design, nature and source of data.
Chapter four is the heart of the study. It deals about the method of presenting
the collected data, analyzing the data or research procedure and statistical tools.
Chapter five states summary conclusion and recommendations. This chapter
present the major conclusion, compresses them with empirical evidence to the extent
possible and provides some suggestions. The bibliography and appendices are in
corporate in the end of the study.
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CHAPTER- II
REVIEW OF LITERATURE
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An advertising is a form of persuasive communication with the public. The
communication is a usually one sided in ane direction from the advertiser to the
public. The member of the public are free to respond to it in their own way the
response is at an individual or family level. There is little or no dialogue with the
public advertising focus itself upon the public At the same time, especially in a
democracy with a market economy such communication is required so that intelligent
choice are made . Therefore the advertising mere goal is to communicate massage
about an idea, product or service to the target consumer or group of consumer.
Advertising is made to public through specific media device. Advertising is a non
personal form of communication; it is targeted to the mass through identified sponsor
for the targeted consumer.
Advertising theory
Advertising Theory can be highlight by the stage mentioned below
1) Awareness
2) Consideration
3) Reaffirmation
4) Action
5) Reinforcement
Devising a theory of advertising of how advertising is effective within a
consumer’s mind is difficult because consumer’s struggle with every decision they
take. the process in which consumers choose a brand and a product is extremely
complicated. Advertising massage must be tailored and relevant during each stage of
a consumers buying or decision making process. Advertising initiatives can be viewed
as effective on many different levels within this pattern. Advertising massage are
created in order to change the awareness, Knowledge, and attitude of consumer
towards a specific brand offered. Theses changes take place all throughout the buying
a decision making pattern
Stage 1
The initial step within the buying or decision making pattern is a basic
awareness of the product or service. The pure notion that a product is available to the
consumer, whether they need or can afford it at any specific moment within their life,
creates some from of awareness. This stage represents the initial introduction a
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consumer has with a brand. The degree of awareness at this point is obsolete due to
the necessity of an advertising massages need to have some sort of presence with a
consumers environment. Once a brand becomes part of a consumer s environment, or
better yet knowledge base, the possibility of purchase is increased.
The time a product stays in the awareness stage varies depending on the
current stage in life a person is in. the stage in life a person is in defined by their
financial status and current needs. The awareness stage could lead directly into the
following consideration stage or remain in that stage inevitably.
The chance of remaining in the awareness stage does not mean that the
advertising initiatives were ineffective or wasteful. Many times consumer influence
each other and a brand in one consumer s awareness stage could lead to the
introduction of the brand to another consumer. One of the most influential sources of
information regarding product come from the consumer themselves, passing the word
along through daily conversation.
However, the initial introduction must be made through advertising in order to
have the possibility of consumer influencing each other.
Stage 2- CONSIDERATION
Once an advertising massage has moved past the awareness’ stage, the
consumer begins to consider the massage. This stage represents the point in which a
personal connection must begin to be made. Consideration of whether this is a product
that will meet a need of the consumer is the most crucial point within the buying and
decision making process.
This is the stage where consumer weighing the fact. These facts are from the
advertising
Message itself and from their current environment not related to the massage,
including
Other ad message
The main point to consider regarding this stage is that it is a stage where
advertising want to establish a connection with the consumer. Research on the target
market and profiling on the target help to ensure a message to resonate with the
consumer in a positive way. The connection would then puss them to later purchase or
develop an affinity for a certain brand.
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Stage 3 -REAFFIRMATION
Once the consumer has had time to evaluate the message and the product or
service, a connection must be made in order to move the next stage. The next stage
involves reaffirming the consumer that the connection does exist. This stage is where
they fully understand the connection, which has been made, and see a place in their
lives for the advertised product or brand. This stage is similar to the considerations
stage but involves an additional awareness of competition and evaluation of
preference. This stage can lead back to the consideration phase if not enough positive
association are made with the product or brand. This positive association can come
from influential friends and relation and additional advertising messages in varying
forms of media
Stage 4-CONFIRMATION
After the consumer has been reaffirmed by additional advertising message and
influence from other consumer, the communication and relevance in the consumer’s
life exists. The consumer’ than enters the confirmation stage. This stage is where the
brand and product are viewed in a position light and there is increased chance of
recommendation to other consumer or action. The confirmation stage does not always
lead to action. Consumer can stay in the confirmation stage for a long time before any
initiatives to buy actually take place. This mostly involves the level of involvement
the consumer has with the product or brand. Higher cost items might have to remain
in the confirmation stage until available funds are available to the consumer. In this
case, the consumer could go back into the consideration and reaffirmation stage. More
likely, confirmation will take place again at a later time where the product or brand is
more appropriate within the consumer’s time in life.
Stage 5- ACTION
After a confirmation of a brand or product is made, hopefully an action will
take place. This stage is where the consumer has found a need and a connection, and
believes it is the right time for them to purchase the product. Within this stage,
reaffirmation and consideration come back into play both prior to the purchase and
after. There is a constant need to convince oneself that this decision is the correct one.
Advertising message from competitors is still playing a large role in the consumer’s
decision making. This consideration and reaffirmation occurs as the consumer is
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bombarded with competitor message and the message of the brand or product now
preferred. However, it is important that once a consumer decides to initially purchase
a product, they go back and forth between the reaffirmation stage and confirmation
stage until the actual purchase takes place. Once the purchase takes place, the
consumer must have reinforcement in order to defer dissonance with the product or
brand
Stage 6-REINFORCEMENT
The reinforcement stage involves continuing advertising initiative to maintain
the positive association the consumer initially had. This stage is where the consumer
decides if the produce actually did fulfill the need to be met as promised. This
reinforcement brings additional advertising initiatives and the actual experience with
the product or brand after purchase. It the consumer is satisfied with the product or
brand, a continuation of use will be established. Advertising
Purchase or try the brand once these messages are designed to become part of
the consumer’s lifestyle and induce repeat and purchasing behavior.
Methods of advertising
Medium is the instrument or the way through which the advertisements are put
before the public. It is the vehicle teat carries the messages to the right readers,
viewers, listeners or passers by. In advertising agencies there are media planners and
media buyers who are highly experienced experts. The media owners exploit 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 most 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
reached with the desired frequency. The greater the frequency desired, the smaller the
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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 not 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
another to another. The eastern concept and western concept of classification are
different. For example, author chunawala with other four authors in their book.
Advertising theory and practices have classified advertising media as broadcast and
non broadcast media. Broadcast media include radio and television where as the non
broadcast media include videos, cable, network cinema etc. beside these media there
is print media which include newspaper and magazine. These three media are called
the “mass media” or “technological media”. In additional 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 into:
(a) news paper, magazines
(b) other paper
2) Electronic media
The electronic media includes:
(a) Radio
(b) Television
(c) Video
(d) Cinema
(e) Electronic signs
(f) Sky-writing
3) Direct advertising media:
The direct advertising media is also in four types
(a) Envelop enclosure
(b) Catalogue and booklets
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(c) Sales letters
(d) Gift novelties
Types of advertising
Advertising can be divided into two categories
(a) consumer advertising
(b) trade advertising
Consumer advertising is the type of advertising which is directed at the public.
Consumer advertising can be further divided into national advertising and local
advertising. National advertising is directed at consumer 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 institution
advertising, image advertising, cooperative advertising or informational advertising.
Rather than trying to sell a specific product, institution advertising seeks to
create a favorable impression of a business or institution. It is designed solely to built
prestige and public respect. For non profit institution, such advertising helps support
the institution’s activities i.e., by encouraging blood donations or cash contribution for
the work of an organization like the Red Cross. However, profit earning business
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 singles are receive with great regularity and with clear sound
where as AM is amplitude modulation in which sound wave length in size though the
frequency remains constant.
“Advertising is carried on in Radio either by the use of short commercial, 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 position of well known personalities or such other advertisements. Sponsored
programs going on for fifteen minutes or more may be prepared by advertisers, for a
popular program with advertising” S.A. sherlakar.
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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.
Radio broadcasting first started on the UK and spread to the other countries. In
Nepal, radio Nepal was established on 20th Chaitra, 2007. Some merits and demerits
of radio advertising are as follows:-
Merits of radio advertising
1) human touch
The radio advertising has 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 listener 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 locals and national radio broadcasting system that the listeners as
well as advertisers can select among them. The listeners tune into the most interesting
and good station as per their choice. The advertiser 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 then 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 press is wastage
and television can not reach the remote places, and 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.
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
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life of message ends. Even if the listener listens, 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 advertising. 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 certain time allotted to the advertisements in radio. As the allotted
timing, the advertisement is also limited. The advertisement must not be; lengthy as
an advertiser cannot buy long announcement timings so there is always limited timed
in radio.
4) Wastage:-
Radio advertisement covers the mass so specific coverage of special groups
like youth. Old age etc are not possible. Beside, listeners are more interested on
music, news so the advertisements are often not given attention. As such, there is
wastage of advertisements.
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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 advertised to test a
medium. The advertising objective or reasons for advertising differ as per the
advertisers; requirement. The other objectives of advertisements can be to educate
consumer, to announce the location of stockiest, to challenge sales, to maintain sales
etc.
Consumer Psychology
Psychology is the description and explanation that is, the study of the causes,
conditions, and immediate consequences so far as these can be ascertained, of states
of consciousness such as sensations, desires, emotions, cognitions, reasoning,
decision, volitions, and the like in human beings.
Need to understand:
Why consumers make the purchases that they make?
What factors influence consumer purchases?
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perhaps it requires a moderate amount of time for information gathering. Examples
include clothes- know product class but not the brand.
Extensive/Complex Decision Making- It deals with high involvement,
unfamiliar, expensive and/or infrequently bought products.
High degree of economic/performance/psychological risk- Examples include
cars, homes, computers, and education. Spend a lot of time seeking information and
deciding. Information form the companies MM; friends and relatives, store personnel
etc. Go through all six stages of the buying process. The purchase of the same product
does not always elicit the same Buying Behavior. Product can shift from one category
to the next. For example; Going out for dinner for one person may be extensive
decision making (for someone that does not go out often at all), but limited decision
making for someone else. The reason for the dinner, whether it is an anniversary
celebration, or a meal with a couple of friends will also determine the extent of the
decision-making.
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Traits affect the way people behave. Marketers try to match the store image to
the perceived image of their customers.
There is weak association between personality and Buying Behavior; this may
be due to unreliable measures. Nike ads, Consumers buy products that are consistent
with their self-concept.
Lifestyles: Lifestyles are the consistent patterns people follow in their lives. For
example, healthy foods for a healthy lifestyle.
Social Factors: Consumer wants, learning, motives etc. are influenced by opinion
leaders, person’s family, reference groups, social class and culture.
Opinion Leaders: Marketers try to attract opinion leaders…they actually use (pay)
spokespeople to market their products. Michael Jordan (Nike, McDonalds, Gatorade
etc.) Can be risky…Michael Jackson…O.J. Simpson…Chevy Chase.
Roles and Family Influences: Roles are things you should do based on the
expectations of you from your position within a group. People have many roles-
Husband, father, employer/employee etc. Individual’s roles are continuing to change
therefore marketers must continue to update information. Family is the most basic
group a person belongs to. Marketers must understand the following things:
Many family decisions are made by the family unit.
Consumer behavior starts in the family unit.
Family roles and preferences are the model for children’s future family (can
reject/alter etc.)
Family buying decisions are a mixture of family interactions and individual
decision making.
Family acts an interpreter of social and cultural values for the individual.
The family life cycle: families go through stages; each stage creates different
demands:
Bachelor stage…
Newly married, young, no children.
Full nest I, youngest child under 6.
Full nest II, youngest child 6 or over 6.
Full nest III, older married couples with dependant children.
Empty nest I, older married couples with no children living with them, head in
labor force.
Empty nest II, older married couples, no children living at home, head retired.
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Solitary survivor, in labor force.
Solitary survivor, retired.
Modernized life cycle includes divorced and no children.
Reference Groups: Individual identifies with the group to the extent that he takes on
many of the values, attitudes or behaviors of the group members like families, friends,
sororities, civic and professional organizations etc. Any group that has a positive or
negative influence on a person’s attitude and behavior are reference groups.
Membership groups (belong to).
Affinity marketing is focused on the desires of consumers that belong to
reference groups. Marketers get the groups to approve the product and communicate
that approval to its members. Credit Cards etc.
Aspiration groups (want to belong to).
Disassociate groups (do not want to belong to).
Honda tries to disassociate from the “biker” group. The degree to which a
reference group will affect a purchase decision depends on an individual’s
susceptibility to reference group influence and the strength of his/her involvement
with the group.
Social Class
An open group of individuals who have similar social rank are called social
class. In the world there is no classless society. Criteria, Occupation, Education,
Income, Wealth, Race, Ethnic Groups and Possessions etc are social class which
influences many aspects of our lives. Social class determines to some extent, the
types, quality, and quantity of products that a person buys or uses. Lower class people
tend to stay close to home when shopping; do not engage in much pre purchase
information gathering. Stores project definite class images. Family, reference groups
and social classes all have influence on consumer behavior.
Culture and Sub-culture
Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogeneous group of people and transmitted to the next generation. Culture also
determines what it acceptable with product advertising. Culture determines what
people wear, eat, where they reside and travel etc. It has big impact on marketing.
Culture affects what, how, and when people buy? Understanding Consumer Buying
Behavior offers consumers greater satisfaction (Utility).
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Review of Major Past Studies:
There are some similar studies which had been conducted previously about
advertising 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. For this, some research studies are conducted on advertising and sales
promotion by different researchers of university students of masters’ level.
The first study on advertising field is conducted in 1980 by P.R. Pandey
entitled as “Advertising in Nepal” which is focused on the advertising situation and its
environment in Nepal. The other objectives of this study are patterns 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 an advertising field at that time as the advertising was
still on infant stage of development. Thus, the study did not touch the creative aspect
of advertising.
The major findings of the study stated in the study is 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, 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.
In 1981 Upadhyay (1981) conducted a study regarding on “Radio Advertising
and its impact on purchasing acts in consumer goods.” As radio was on 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
decisions. The objective of this study were to study the availability and comparative
costs 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.
42
The other significant study on promotional effort conducted by Bhatta (2000)
entitle “Sales Promotion and its effect on Sales: A case study of Beer Market of
Nepal.” 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 the same. This study specially deals with the most recent and
widely used methods of sales promotion and its impact on product market.
In Nepalese product market there are various cosmetic products are 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
favorites 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 impact of radio advertisement on consumer
behavior 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.
43
CHAPTER III
RESEARCH METHODOLOGY
This is the part which deals with methods and Techniques use for organizing
research work. This study is based on both primary and secondary data secondary data
were collected different source and primary data were collected by taking interviews
to different people.
This study attempts to study the impact of Radio advertising towards the
buying behavior of consumer. To get this objective the relationship between three
independent variables, i.e. consumer attitude perception and credibility towards
advertisement which dependent variable consumer buying behavioiur is analyzed.
Besides these prime objectives there are two subsidiary objectives of the study, i.e. to
know abut the factor that affects consumer buying behavior. It is very hard to choose
the research design to best fit to the study without error to achieve. The mention
objective the research methodology use is given below.
3.1 Research design
This chapter deals with the various methodologies pick up for the conduction
of the fieldwork at the study. For the achievement of the stated objectives basically it
followed survey type of research design perusing. It has included data collect from the
management of company and survey questionnaire for primary data collection. For
the purpose of analysis, the data were tabulated and analyzed using mostly descriptive
and analytical tools. The following section contains the designs of the study, various
sources of data, a description of research instruments and the methods to collection
data.
“Research design is the plan, structure and strategy to investigation conceived
so as to obtain answers to research questions and to control variable” FN Kerliger
(1986)
3.2 Population and sample
The population of the study comprised all the consumer of Biratnagar. Both
primary and secondary data are used in this study. As discuss above for primary data
collection questionnaire are developed and 100 samples were collected during the
44
study and secondary data were collected from different books unpublished MBS
thesis NTV viewers’ survey.
3.3 Nature and sources of data
In this study two kinds of data are used primary and secondary data. Primary
data are those data which is collected first time by researcher from the tide by using
several kinds of technique like questionnaire technique, observation technique
interview and Secondary data are those data which is obtain by other person and
which is take in count by researcher from other sources. The sources of secondary
data are unpublished research, published research book journal etc.
3.4 Data collection procedures:
As already mentioned above both primary and secondary data are used in this
study.
I. Primary data: For collecting primary data and information, the different method
have been adopted there were
i) Questionnaire method: During the course of the research study different
questionnaire have been designed or prepared as per the requirement of the
research study. The list of questionnaire and their types are attached in the
Appendix ‘I’ of the research study the list of questionnaires has been
distributed among 100 people of the city Biratnagar randomly to receive
information accurately.
ii) Interview method: The interview is a method allowing the researcher to
ask question which will enable him/her to answer research options in order
to get information for the introductory from work at research study.
Structured and unstructured interview has been conducted to the different
people of different age groups.
II. Secondary data and information:
Secondary data are actually the results and data collected by previous
investigations. It provides the researchers with a considerable amount of useful
information.
With reference to research study the different secondary information has been
collected from different sources. The different sources are book magazines news
paper, TV viewer survey and dissertation submitted to the institute of management
and manuals and papers.
45
3.5 Data Analyzing Technique
In order to fulfill the objectives of study various graphs diagrams including
pie-chart has been applied for the purpose of analysis. The result of analysis has been
properly tabulate compared analyzed and science the proper data the study has
become more completed. For collecting data structured questionnaire were sent out
limited person respondent and sent proper answer. So structure, multi-choice, open-
ended as well as closed questionnaires were constructed for data collection. In so
question some questions were designed to collect the personal information like name,
age, sex education family life cycle and occupation. Some questions were designed to
collect the information on factors that affect consumer buying decision process; some
questions were designed to collect the data on consumer attitude towards
advertisement and buying behavior. Three kinds of Analysis Technique are use in the
research:
i) Multiple Bar diagram and graph
ii) Pie diagram
iii) Percentage
3.6 Data presentation and analysis tools.
The consistency of answer provided by respondent was checked and tabulated
according to age sex and education status. Different set of tables have been prepared
for Every important questionnaire. Simple listing method is used for tabulation of
Data and different responses made by them are presented on percentage basis as well.
The responses were categorized, tabulated, processed and analyzed using different
methods to present in the understandable for pie-chart and simple bar diagram were
used. The sample data collected covering the various back grounds are presented in
table below.
The Situation of gender wise data collection is presented in table -1.
Gender wise sample collection
Table: - 1
46
Similarly the data collected from various educational Backgrounds is presented in
table 2.
Table: - 2
Educational wise sample collection
Description Sample size
Uneducated 20
Below SLC 20
SLC 20
Above graduate 20
Graduate 20
Total 100
Like wise the situation of age wise sample collection from various age groups are
presented in table 3.
Table: - 3
Age wise sample collection
Below 20 20
20-30 20
30-40 20
40-50 20
Above 50 20
Total 100
47
CHAPTER IV
Data Presentation and Analysis
48
It is found that 30 person (30%) reorganization those Advertisement which
telecast throw T.V. 32 people (32%) people reacting for those advertisement which is
board casting throw the Radio/FM. 22 people (22%) people reacting for the those
advertisement which publish in Newspaper and 16 people (16%) get their attention
towards hoarding Board. These data clearly indicate that most of the people reacting
about those produce which advertisement is pass throw F.M. / Radio. It means Radio /
F.M. is more effective then other media. The effect show in below pie-chart.
Hoding Boar d
16%
Television
30%
Newspaper
22%
Radio
32%
49
male have habit of not watching advertisement. The statistics is presented below
thought multiple bar diagram.
45
40
35
30
25 Male
20 Female
15
10
5
0
Watching Not watching
50
Negative
impact
15%
No impact
22% Positive
impact
63%
51
Product not
Advertised
19%
Product
frequency
Advertised
81%
52
The above table shows in brief the consumers reaction to the adequacy of the
advertisement. Among the total 100 respondent 78% wanted some more information
to be added in the advertisement whereas 22% responded that the context of the
advertisement are adequate i.e. they are fully satisfied with the information received
from advertisement of particular product.
Therefore, from the analysis it can be concluded that mayor it’s of consumer
are willing to add additional information in the advertisement so that the
advertisement would be adequate enough to accomplish the demand of the consumer.
The above information clearly shows in pie-chart below.
Adequate
information
22%
See information
for additional
78%
53
The above table shows the preference of consumer to the product having same
price and quality act of the total 100 respondent 83% given preference to the
advertised product whereas 17% given reference to non advertised consumer. The
following result is shown in pie-chart below.
Not advertise
product
17%
Advertise product
Not advertise product
Advertise product
83%
Figure 9: Consumer’s preference to the product having same price and quality
4.1.8 Age wise consumer preference on Advertisement
The table shows the age level and their advertisement preference the sample
size of total people is divided into five groups of 20 people. The detail situation has
been presented in below:
Age wise consumer preference on advertisement
Table: - 10
Description Same size Musical Good working Simple All type
Below 20 20 12 4 2 2
20-30 20 11 4 4 1
30-40 20 5 8 2 5
40-50 20 3 7 6 4
Above 50 20 1 11 9 0
Total 100 32 33 23 12
Source: Field Survey
54
From the table above, It was found that out of 20 people of age group Below
20, 12 people preferred musical advertisement 4 people found to prefer good wording,
2 people of Below 20 preferred good wording and 2 people also prefer all types. The
reaction of people those fall in age group 20 to 30, 11 people preferred musical
advertisement. 4 people each preferred good wording and simple advertisement and
only 1 people preferred all type i.e. musical good wording. Simple which clearly
means that majority of age group prefer musical advertisement taking about of age
group 30 to 40. 5 people preferred musical advertisement 8 people preferred good
wording. 2 people preferred simple and 5 people preferred all type advertisement at
the age group of 40 to 50, out of 20 people 3, 7, 6, 4 preferred musical, good wording
simple, all types respectively. It means that majority of people preferred good
wording advertisement at the age group of above 50, only 1 people preferred musical
advertisement. 11 people preferred good wording. 9 people preferred simple and zero
people preferred all types of advertising the data are clearly show on multiple bar
diagram below.
25
20 20 20 20 20
20
Below 20
15 20-30
12
11 11 30-40
10 9 40-50
8
7 Above 50
6
5 5
5 4 4 4 4
3
2 2 2
1 1
0
0
Same size Musical Good working Simple All type
55
Literacy wise consumer preference on advertisement
Table: - 11
Description Same size Musical Good Simple All type
working
Below SLC 20 13 2 1 4
SLC 20 9 4 4 3
Graduate 20 5 9 3 3
Upper 20 2 7 6 5
graduate
Uneducated 20 11 2 2 5
Total 100 32 33 23 12
Source: Field Survey
The above table shows that lower educated respondents people preferred to
musical advertisement regarding musical advertisement 13 people preferred musical
advertisement whereas 9 people of SLC preferred it. Likewise 5 graduate people
preferred it 2 upper graduates preferred it and if uneducated people preferred it.
Similarly, regarding advertisement with good wording 2 people and 2 uneducated
people preferred advertisement with good wording, considering simple advertisement
1 Below SLC. 4 SLC level, 3 graduate, 6 upper graduate and 2 uneducated people
preferred it. And for all types 4, 3, 3, 5, 5 people of Below SLC, SLC pass, graduate,
upper graduate preferred it. The meaning of that calculation upper graduate and
graduate people are more focus about good wording. While lower equated people
focus on musical advertisement to understand the above information properly the
below multiple Bar diagram is presented.
25
2020202020
20
Below SLC
15 13 SLC
11 Graduate
10 9 9 Upper graduate
7 Uneducated
6
5 5 5
5 4 4 4
3 3 3
2 2 2 2
1
0
Same size Musical Good working Simple All type
56
Figure 11: Literacy wise consumer preference on advertisement
4.1.9 Preference of advertising according to gender
The situation of preference of consumer on advertising according to the
gender is presented below:
Preference of advertising according to gender
Table: - 12
Description Same size Musical Good Simple All type
working
Male 50 20 24 5 1
Female 50 22 17 3 6
Total 100 42 41 8 7
Source: Field Survey
The above table show preference of advertisement according to gender of 50
male, 20 responded are found to like the musical advertisement, 24 respondent
preferred good wording, 5 respondent preferred simple advertisement and 1 like all
type of advertisements. Regarding no female respondents 22 preferred for musical
advertisement, 17 good wording, 3 simple, 6 all type preferred advertising
respectively for more clarity the above information presented with the help of the pie-
chart.
Male
All type, 1
Simple , 5
Musical , 20
57
Female
All type, 6
Simple , 3
Musical , 22
58
the third group 30 to 40 out of 20 responded 5 people are try to know the meaning of
advertisement 10 people are curious about advertisement and 5 people are more
audience then other. In the fourth age group out of 20 people 9 are interested on the
meaning of advertisement 1 person curious about to advertisement and 10 people are
just hearing. In the fifth age group majority of people 10 people are curious about
advertisement than after 7 people are just passing their time by hearing advertisement,
3 people are conscious of meaning i.e. they try to know the meaning. The above
analysis is more clearly presented in the following chart.
25
20 20 2020 20
20
Below 20
15 20-30
11 30-40
10 10 10
10 9 9 40-50
7 7 Above 50
5 5 5
5 4 4
3
1
0
Same size Try to know Curious Just hearing
59
The above table indicates the reaction of respondents in term of their
education status 6 respondent having qualification below SLC opined that they want
to know only the meaning of advertisement. 2 out of total 20 respondent are found to
be highly interested to the advertisement where as 12 respondent are found to be more
audience. The group of SLC passes qualification 6 respondent want to know the
advertisement mean 5, 8 respondents are curious about advertisement while 6 people
are just watch or hearing. Taking about the third group having graduate degree 13
respondent viewed that they are only conscious to the meaning of advertisement 6
people are inquisitive to the advertisement where as 1 people found to be only
audience. In the fourth group i.e. having qualification of above graduate degree 9
people are found to be aware of the meaning of advertisement, 11 are excited about
advertisement while zero people are found to be inactive audience. To see the
uneducated people 4 people want to know the meaning of advertisement. In people
are highly interested whereas 3 are dull audience. The above calculation can be
presented with the help of multiple bar diagram given below.
25
2020202020
20
Below SLC
15 13 13 SLC
12
11 Graduate
10 9 Above Graduate
8
6 6 6 6 Uneducated
5 4
3
2
1
0
0
Same size Try to know Curious Just watch or
near
60
Gender wise reaction to the advertisement
Table: - 15
Description Same size Try to know Curious Just
watching
Male 50 12 14 24
Female 50 23 20 7
Total 100 35 34 31
Source: Field Survey
The above figure show the gender wise reaction of advertisement out of total
50 male 12 respondent view that they are particular only to the meaning. 14 are
curious to advertisement and 24 found to be more audience. To see the female
population 23 people are found to be concerned of the meaning of advertisement out
of 50, 20 female are curious about advertisement and only 7 are found to be one
audience. The above calculation can be presented with the multiple bar diagram.
60
50 50
50
40
Male
30
23 24 Female
20
20
14
12
10 7
0
Same size Try to know Curious Just watching
61
Factor that influence consumer to buy the product
Table: - 16
Description No. of respondent Percentage
Quality 20 20%
Price 27 27%
Advertisement 32 32%
Price of substitution good 21 21%
Total 100 100%
Source: Field Survey
The above table show the factors which influence customer to buy the product from
the table it is clear that majority of people 32% respondent that are influenced by the
advertisement 21% respondent by the substitution product price 27% respondent by
the price and only 20% people responded by the quality that due to ignorance of the
quality.
4.1.14 Comparison cost of media
Because of the cost which charged by the media of advertisement it is more
important to know which media is suitable for small production house. It is most
important to know that which cost is less among the two media of advertisement from
the table below it shows the cost of all media.
Comparison cost of media
Table: - 17
Description Cost of media Cost of Radio
Annually 1,00,000 4000
Semi-Annually 60,000 3500
Monthly 20,000 2000
Source: Field Survey
The above table show that the cost of television is much higher than cost of
Radio for the small production house, it is less expensive to advertising throw Radio.
This cost not include the cost which charged by agency of marketing.
4.1.15 Sales and advertising expenses of company:
From the table below, it clearly shows the sales and advertising cost of
company.
62
Sales and advertising expenses of company
Table: - 18
1200
1000
800
Advertising
Expenses
600
Sales
400
200
0
2059/60 2060/61 2061/62 2062/63 2063/64
63
effective. Out of total 100 respondent 58% were in favor of television.
Like wise at other popular media is newspaper out of 100 responded. It
responded to newspaper next media is radio out of 100 people 15
responded respond toward it last is hoarding board 10 people are in favor
of that.
ii) This test was made for testing whether consumer have habit or watching or
not from that test it was clear that consumer (male and female) educate
interested to watching/hearing advertisement. The sample size of 100
divided into two group male and female and it found that 40 male (40%)
and 42 female (42%) has habit of watching/hearing advertisement. It
clearly indicate that the consumer have habit of watching/hearing
advertisement.
iii) This test was made to know the impact of advertisement. It id found that
out of 100 respondent 63 people 63% people get positive impact and 22
people 22% people says that they have no impact and 15% people says
that they have no impact.
iv) This test was made to testing the impact of frequency at product
advertised. Means, the role of frequency of advertisement and it found that
81 out of 100 responded are in favor of frequently advertised product and
19 responded that they refer those product which not advertised. It means
that majority of people think that the frequently advertisement made their
decision easy to purchase.
v) This test was made to testing the consumer need from advertisement some
consumer watch / heard advertisement for some thing. They try to collect
the information from the advertisement from this test it found that 78
people out of 100 are seeking for additional information from
advertisement and 22 (22%) are satisfied whatever they achieved from
advertisement.
vi) This test was made to test what happen when consumer has two options at
same price and same quality and it is found that 83% people give their
preference to advertised product in spite of the substitute product with
same price and quality. This shows that in that condition advertisement
play good supporting role for product.
64
vii) This text was made to know the effect of age factor of consumer on
advertisement and the conclusion is below. The majority if below 20
preferred for musical advertisement and 20% preferred for good wording
and both 10% preferred for simple and all type it means that if the
advertisement is for below 20 age grope it is better to made good wording
musical advertisement for the age group 20 to 30, 55% of respondent
preferred for musical advertisement. Each 20% respondent preferred for
good wording and simple and only 5% responded for all type. Incase of 30
to 40, 25% responded referred for musical, 40% referred for good wording
100% for simple and 20% referred for all types of advertisement. Incase of
40-50, only 15% people prefer musical advertisement, 35% people
preferred good wording like wise, 30% people prefer simple advertisement
and 20% people preferred simple advertisement and 20% people all types.
In case of above 50 only 5% people preferred musical advertisement 55%
people preferred good wording and 35% like simple advertisement.
viii) To test the effect of literacy: This rest has been made from the survey, it
found that lower she 65% like musical advertisement 10% prefer good
wording 5 % people prefer simple and 20% prefer all type. Incase of SLC
pass 45% like musical, 20% like good wording. 20% simple advertisement
15% like all type advertisement. In case of graduate 15% prefer musical
advertisement 45% prefer good wording advertisement 15% prefer simple.
15% prefer all types. For the case of upper graduate 10% prefer musical.
35% prefer good wording. 30% prefer simple advertisement and 25% like
all time advertisement. Incase of uneducated group 55% prefer musical
advertisement 20% prefer good wording 10% like simple and 30% prefer
all type advertisement.
ix) This test was made to know the preference of advertisement according to
gender, from the survey it is found that out of 50 male 20 prefer musical
advertisement and 24 like good wording advertisement and 5 male like
simple and person all type advertisement for the case of female out of 50,
22 person prefer musical, 17 people good wording 3 women like simple
and 6 all type.
x) From this test, it was found that the below 20 group the majority no of
people just hearing the advertisement (45%) age group 20 to 30. Try to
65
know something from the advertisement no. 11 percentage 55%. In the age
group of 30 to 40, 25% people try to know 50% people curious about
Advertisement and 25% people again audience in the age group of 40 to
50, 45% try to know only 5% people curious and 50% people just heard
the advertisement. In the group of above 50, 15% people Try to know 50%
people curious about product and 55% people just heard the advertisement.
xi) In the context to education wise reaction on advertisement. It’s found that
most of lower uneducated people just heard advertisement 65%. Among
the SLC and above SLC test watch and curious 60% and 40% respectively.
Among the graduate and upper graduate people heard the advertisement to
know or curious 65% and 55% of nears. They are serious about the
advertisement and they Try to know from the advertisement.
xii) This test was made to know the reaction of advertisement gender wise and
the situation of gender wise reaction to advertisement shows that out of 50
male 24% Try to know 28% curious and 48% just watch it means majority
of male 1st heard the advertisement they have no mean to know anything
but in the context of women they have no mean to know any thing but in
the context of women 46% women try to know, 40% curious and only 4%
watch it means that women are bit sincere about the advertisement.
xiii) This is the test for to know, what factor influxes to buy the product and
this test clearly indicate that advertisement and substitution product price
influxes consumer more the price and quality of the product.
xiv) The cost which taken by the media of Advertising from this test it is found
the television media is much higher the radio media. For annual telecasting
Average of media taking 1,00,000 p.a but for that same time Radio media
charging only 4000. For semi annual Television media are charging 60000
and Radio/F.M. Media of Biratnagar taking only 3500 and for monthly,
Television charging 20000 and FM (Radio) media taking only 2000.
xv) This test is made to know the effect of advertisement on sales and it is
found that in every year when Advertisement expenses increase sales is
also increase.
66
CHAPTER – V
Summary, Conclusion and 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 and created to
achieve the most result for the lowest 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 remarkable flexibility and range of operation. This versatile and
flexibility of the advertisement does have to be used intelligently. This is lacking in
Nepal. In this regard the present study will be helpful. Before there is any expenditure
on advertising, there must first be an assessment of the likely return, and one method
or medium should be judged against another on a cost benefit analysis. This study
surveys the impact of radio advertising on consumer behavior. Thus, this study will be
very important for the advertiser. It will help them to improve their advertising policy.
In Nepal, advertising is growing day by day. Advertising is widely used by
business, government and social organization. Banks extensively use it to issue
notices for repayment of overdue loans. The use of advertisements by private airlines
is increasing every year. However, the impact of advertisement to the various
consumers is unknown. Thus, the study to analyze the impact of radio advertisement
on consumer behavior is essential in Nepalese context.
The main objectives of the study is to analyze the impact of radio
advertisement on consumer behavior with reference to noodles but the specific
objectives are (a) to examine the consumers’ preferences on radio advertisement. (b)
to identify the consumers’ reaction to the radio advertisement. (c) to examine the
popularity of the radio advertisement. (d) to analyze the effectiveness of the
advertisement of noodles products. (e) to examine the factors that influence to buy the
noodles product.
67
Advertisement is one of the most important components to influence
consumers for making them familiar about the product. The study regarding the
impact of radio advertisement in consumer behavior is perhaps is 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,
different gender and educational background are collected and various statistical tools
are used to analyze the data to achieve the objectives of the study.
Conclusions
According to the findings of the analysis section it can be concluded that
majority of the people have habits of listening radio and out of them, women are more
curious in listening radio than men which indicates that radio advertisement is more
popular means of advertisement than all other types of advertisement but most of
them just listen radio rather then to know any new information. In addition to this
majority of the people of differing age groups a well as different educational class and
gender prefers to the musical programs a compared to other types of radio programs
which indicates that musical programs are more popular among the people than other
programs. Similarly, majority of the people prefers the product which is frequently
advertised rather than non-advertised products though the products are of similar
nature. But most of them purchase the product due to their necessity and not due to
the influence of advertisement. Likewise, the advertisement of noodles product like
wai-wai is very much effective to make the customer familiar about the product but
majority of them are influenced by the quality of product and not by the advertisement
though they know about that product from advertisement. Thus, in conclusion it can
be concluded that radio advertisement seems to be the most popular means or media
which plays crucial role to enhance the market of the goods manufactured.
5.3 Recommendation
On the basis of the findings of the study, following suggestions or
recommendations are recommended:
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 advertisers either makes their
68
advertisement in musical form of they should broadcast the advertisement in
musical program.
The study shows that majority of the respondents have habit of listening radio
and it is more popular with women consumers. So, the advertisers and
producers should give preference to the radio advertisement by focusing more
to the women advertisement.
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 various aspects of the product.
Thus, advertisers, manufacturers and producers should include sufficient
information so that consumer can be satisfied regarding the matter.
The study indicates that the advertisement of any product leaves the good
impact to consumer behavior regarding the product but to some extent their
purchasing decision depends upon the need of the consumers. So the
manufacturers and advertisers should also try to create the necessity of the
product through advertisement using effective presentation of product and
product related information in their advertisement.
The advertisement of noodles product is very much effective to leave a
positive impact upon consumer regarding the product rather than other
variables. So, all the manufacturers of noodles product should produce a
product having good quality and advertise their product effectively such that
their market share increases rapidly.
The study indicates that the wai-wai instant noodles are more popular product
than other noodles product. So, the firm should try to maintain this strength in
future too.
In the study, majority of the respondents stated that the price of wai-wai is
comparatively higher than other noodles product. So, the producer of wai-wai
instant noodles should address this weakness and the price of the product
should be comparatively reasonable as other competitive product.
69
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Kotler, Philip (1986), Marketing Management Analysis, Planning and Control, Prentice Hall
of India Pvt. Ltd., New Delhi.
Kotler, Philip and Armstrong, Gary (1991), Principles of Marketing, Prentice Hall of India
Pvt. Ltd., New Delhi.
Shrestha, K.N. (1993), Marketing Management: Concepts and Strategies, Nabin Prakashan,
Kathmandu.
70
Shrestha, Shyam Kumar (2002), Fundamentals of Marketing, Book Palace, Kathmandu,
Nepal.
DISSERTATION
Baral Surya, Advertising and Brand Preferences of Instant Noodles, (An unpublished Master
Degree Dissertation, Tribhuvan University: Shankar Dev Campus - Kathmandu,
2002).
Bhatta Nabin, Sales Promotion and its Effect on Sales: A case study of Beer Market of Nepal,
(An unpublished Master Degree Dissertation, Tribhuvan University: Central
Department of Management - Kirtipur, 2002).
Pandey, P.R., Advertising in Nepal, (An unpublished Master Degree Dissertation, Tribhuvan
University: Central Department of Management - Kirtipur, 1999).
Pant Rekha, The study on Brand loyalty, (An unpublished Master Degree Dissertation,
Tribhuvan University: Central Department of Management - Kirtiur, 2001).
Shrestha Sulav, The Role of Advertising in Brand Choice and Product Position, (An
unpublished Master Degree Dissertation, Tribhuvan University: Central Department
of Management, Kirtipur, 2003).
Upadhyay Ramesh, Radio Advertising and its impact on Purchasing acts in consumer goods,
(An unpublished Master Degree Dissertation, Tribhuvan University: Shankar Dev
Campus - Kathmandu, 2002).
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Appendix
Questionnaire
A survey on “Effect of Radio/F.M.advertising on buyer behavior”
Dear respondent,
Name:- Address:-
a) Yes b) No
b) curious about it
c) just watch it
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4) Does repetitive advertisement attract your attention?
a) Yes b) No
a) Yes b) No
a) Yes b) No
a) Yes b) No
a) Yes b) No
73
12. If an advertisement interests you what do you do?
13. If there are similar kind of product in the market in term of price and quality which
product would you choose?
a) Advertised b) Not advertised
14. Have you brought any product after getting information from advertisement?
a) Yes b) No c) Can not say
a) Newspaper
b) Radio
c) Television
d) Hoarding board
16. What suggestion would you like to give to improve the product’s feature and schemes
being provided from the company? Please mention them.
a) Age
Below 20 20-30 30-40 40-50 Above 50
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b) Marital Status
Single Married
19. What kind of advertisement you found more effective? Please tick any point.
a) Informative
b) Reminding
c) Persuading
20.How far do you think advertisement can help you in purchasing a product?
a) Helps a lot b) Doesn’t help
21. To increase the purchasing decision, which of the following factor would you follow?
a) Reasonable price
b) Qualities product
c) Effective advertising
d) Aggressive sales promotion
23.Are you loyal towards and aware of the brand which you buy?
A) Yes b) No
28. Mark on the following scale how much you believe in the advertising massage
delivered to you by sponsors through various means of advertising ?
a) 100%
b) 75%
c) 50%
d) 25%
e) 0%
29. Do you think that schemes are important to attract customer towards product?
a) Very much
b) Quite important
c) Not so important
d) Not important at all
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32. Can you give your idea about advertisement?
36. Have you brought the product after getting information from advertisement?
a) Yes b) No
37. Have you found any difference between other noodle and Mayos noodle?
a) Yes b) No
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39. D you think old age people prefer food like noodle?
a) Yes b) No
78
47. How many member in your family love to eat noodle?
49. Can you please give the reason why do they like to have it?
50. What types of advertisement you found more effective that result in high sale?
a) Informative b) Reminding c) Persuading
51. Which factor do you suggest in more important to increase sale of product?
a) Good profit margin
b) Effective advertising
c) Attractive sale promotion
79