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ORG

Impact of advertisements on Consumer Behaviour

Ms. Babitha B.S.1, Devayudth Dey2, Yash Agarwal3, Akshat Hathi4, K Sai Ankith5,
Rajashmita Roy6
Assistant Proffesor1, Students2,3,4,5,6,
Center for Management Studied, Jain(Deemed-to-be-University),
Bangalore-560027

ABSTRACT - By thoroughly reviewing the most recent domestic and foreign literature, this paper analyses
how ads affect consumer behaviour. According to the study, advertisements have a big impact on customers'
attitudes, feelings, and purchasing choices. The study examines how new technologies are used in advertising.
The results imply that in order to gain the confidence and long-term relationships of consumers, marketing should
be customised to the requirements, tastes, and values of consumers. Overall, this research advances knowledge
of the intricate interactions between advertisements and consumer behaviour in the modern economy.

KEYWORDS-
Advertisements, consumer behavior, brand awareness, brand image, trust, loyalty, positive impact, negative
impact, social responsibility, research findings, marketers, advertising campaigns.

Chapter 1: INTRODUCTION
1.1 Introduction
Advertising is a form of communication that encourages the audience to make a purchase decision about a product
or service and to pass on information to viewers. It is regarded as an important factor in the economic growth of
traders and businesses. Advertising is often a paid way of exposure or advertising by specific sponsors through
various traditional media sources such as television, newspaper, commercial radio advertisement, magazine
emails, external advertising, or modern media such as blogs, websites, and text messages. (Sama, 2019)
Advertising's primary goal is to affect consumer behaviour, but people's memories constantly alter or strengthen
this impact on the product. Organizations connected to the brand name in the consumer's imagination build
product memories. These companies' reputations always have an effect on testing, speculation, and eventual
purchases. In the literature on the effects of advertising on performance, consumer purchasing behaviour has
traditionally been given significant weight and space. The majority of customer purchasing decisions are
influenced by how the consumer feels about the product's advertising. While low-quality advertising will have
the opposite effect, good advertising is likely to persuade consumers to buy that goods.
Customers have very diverse expectations for the information they receive from different media, including TV,
radio, newspapers, magazines, and the Internet. The immediate and long-term effects on consumers of various
media characteristics also differ. TV, for instance, enables the high-quality audio and visual content appropriate
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for product categories that require physical display. Radio is a great medium for local companies because it offers
audio information.

1.2 Purpose of the Study

The study's goal was to examine how advertisements affect customer behaviour. Advertising's main objective is
often to persuade consumers to make a purchase. The consumer's liking or disliking of a product advertisement
that is advertised frequently affects consumer behaviour. Without respect to the product's features, consumer
behaviour is solely dependent on advertisement.
Specific Research Objectives
The study was guided by the following objectives
• Identify advertising media used to advertise Products
• Determining how advertisements influence ad purchasing behavior
• Finding out how different ads influence consumer behavior
• Understanding the influence of advertising on a product

1.3 Definition
Consumer Behaviour
According to Kotler and Keller (2011), consumer buying behaviour is a crucial component of marketing and
involves the study of how people, groups, and organisations acquire and dispose of products, services, ideas, and
experiences to fulfil their needs and desires.
The different authors define consumer behaviour as following
“The assumption that people have series of needs which lead to drive state.” - Faison and Edmund (Faison, 1977)
Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. –
(Kotler P. , 1994)

Advertising
According to the American Marketing Association, advertising is any compensated method of an acknowledged
sponsor's non-personal presentation and promotion of ideas, products, and services. This explanation primarily
clarifies what advertising is and aids in separating it from other communication strategies with which it is
frequently confused. Publicity and advertising are not the same thing.
Other various definitions as given by various authors are: -
“Adverting has become the second largest item in our corporate budget. The chips are getting so blue that top
management can no longer afford to be uninformed — naive, if you will — about advertising”. — Russel H.
Colley
“Advertising is a means of communicating information pertaining to product or ideas by other than direct personal
contact and on an openly paid basis with intent to sell or otherwise obtain favorable consideration.” —R. V.
ZACHER

1.4 Characteristics of Advertisement

Advertising plays a big role in the promotional mix. Advertising is pervasive and part of everyday life. The
qualities an advertisement ought to have are listed below:

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The Latin word "advertere," which means "to turn attention," is the root of the English word "advertising." Every
aspect of advertising aims to catch your audience's attention by promoting a good or service.
Realistic, attractive things are essential in advertising. A compelling advertising places an emphasis on visual
cues and uses explicit language to convey the message. Visual tools used in advertisements frequently tell a story
in addition to conveying information.
Ads raise public awareness of products and services. Customers can discover more about the products, services,
and types available on the market with the use of this type of promotion. Really, every commodity or service aims
to satisfy its customers.
It is currently present on audio and visual media like movies, billboards, banners, and many more advertising
activities in addition to print media like newspapers and magazines.
A significant component of the promotional mix is advertising. Advertising is very approachable and ingrained
in society. The following is a list of qualities an advertisement should have:
Want to pay attention
The Latin word "advertere," which means "to turn attention," is the root of the English word "advertising." Every
aspect of advertising aims to catch your audience's attention by promoting a good or service.
It has a lovely aspect. In advertising, tangible, aesthetically pleasing items are crucial. An eye -catching
advertisement emphasises visual clues and employs explicit information to deliver the message. In addition to
providing information, visual aids employed in ads often tell a narrative.
Aimed at consumers
Consumer awareness is increased via advertising. With the help of this form of promotion, customers can learn
more about the goods, services, and varieties that are on the market. In actuality, customer satisfaction is the goal
of every good or service.
It uses various media
In addition to print media like newspapers and magazines, it is now present on audio and visual media like movies,
billboards, banners, and many more advertising initiatives.
The most significant method of marketing a company's assets and capabilities is frequently viewed as advertising.
the range of advertising that may be used to reach new or existing customers with a message. assists a business
in obtaining feedback or information from customers for a new product or special arrangement.
The scope of budget advertising
Within the marketing budget, there is usually money set aside for promotion and advertising. The organization's
desired type of advertisement should match the budget that has been allotted. Budget allocations must take
resources and other needs into account.
Scope of delivering advertising
The marketing strategy can then be further thought through when the budget has been established. It is possible
to determine the precise scope of the task that must be delivered. Now, organisations can develop a recommended
service strategy.
The scope of advertising by delivery
Sharing the different delivery methods (TV, Internet, mobile phone, printer, magazine, etc.) depending on the
demands of the previous campaign might be more illuminating after the previous programme in the case of a
work of art.
Scope of strategic advertising

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Advertising agencies can refine the scope of work based on historical requirements and revenue for comparable
strategic deliveries once the proposal has been shared. They can also specify strategic needs by product or
category.

1.5 Latest Technology Available

1. Targeted Personalized Ads
This is not a new marketing trend per se but it’s one of the advertising trends that have become more popular in
recent times.
In personalized advertising, businesses collect and analyze data about customers and use the information to target
ads. The result is increased conversion potential and overall, lower advertisement costs.
The fast growth of personalized ad targeting is fueled by the increased availability of data capture and analysis
tools and acceptability. According to a survey, seven out of 10 consumers prefer fewer and more personalized
ads.
2. Multi-Channel Advertising
Back in the day, the majority of shoppers made purchase decisions at the store. If you wanted to buy a TV, you
would visit a retail store in town and decide which brand to buy and the amount to spend while inside the store.
Reason? Because there was no way to research these factors before entering the store. Only once inside the store
would you compare things like prices and size.
Not anymore. With the advent of digital media, you can now research a product way in advance. Before heading
to the store, shoppers already know even the color of the item they want to buy. Often, shoppers research multiple
devices (smart home devices, mobile phones,)
3. Shoppable Posts
For the longest time, shoppers have been using social media to research brands by asking friends and
acquaintances for recommendations. In fact, the Global Web Index estimates as much as 54% of social browsers
do this.
Thanks to social commerce now they can buy their favorite products too. Facebook, Instagram, Snapchat, and
Pinterest make social selling efficient, and businesses can’t get enough. Not only can they boost their posts as ads
but also target a specific audience.

1.6 Research Gap

A connected online initiative for one Teaching, Learning, and Scholarly Knowledge Community is the Global
Studies Literature Review. The challenges of moving to a new location from a legal, educational, and human
rights perspective; the need for public tact exchanges and policymaking person prepared for work by extended
study; the global integration and internationalisation of college and thereon; the increasing belief of global
competencies for person prepared for work by extended study or practise fashionable the global trade society

A growing interest and need for particular knowledge, research, and the blending of evolving views fashionable
an off-course variety of field of study and fields are being felt by professionals in the field of global education
and exchange. With such trendy mindset, this new collection of book evaluations, both top current both fictional
and nonfictional at the intersection of various domains, has either material or nonmaterial face traits. Seldom are
both fictional and nonfictional works examined as soon as possible relevant to the practise of international
education; nowadays, the option can be broken down into literature from other sectors that has an impact on us
and introduces two combined speculative and effective habits.

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Chapter 2: Literature Review

2.1 REVIEW OF LITERATURE (DOMESTIC)
This section reviews various theories and disciplines in the field of media vehicles, the effectiveness of advertising
Of the total product cost, 34 percent is for the cost of advertising. This is important because through
advertisements, advertisers aim to get the benefits of mindfulness. (Singh, 2012) Therefore, ads are an important
part of marketing strategy, especially in business-to-consumer situations. Kotler, Keller, Koshy, and Jha (Kotler
P. , 2009) said the buyer goes through different stages before making the final PUR. This was explained with the
help of various models such as attention, INT, desire & action (AIDA), attention, INT, desire, CON & action
(AIDCA), the results model category, the new acceptance model and the information processing model.
(Ehrenberg, 1992) posted that the ad begins to build AWR and INT leading to PUR product.
Various Media Ads
To appeal to their target audience, advertisers use a range of media channels. Newspapers, magazines, radio,
television, and foreign media are among the most often used by advertising, according to Ayanwale, Alimi, and
Ayanbimipe (Ayanwale, 2005). Online marketing is a growing industry, though. contains a variety of commercial
content, including as discussion boards, banner adverts, company websites, emails, chat games, and more.
Advertising spending on cable, cable TV, and radio totaled 44% in 2004, which was significantly more than
spending on newspapers and magazines. This is a result of the effective use of television and online
advertisements. However, Nayak and Shah (Nayak, 2015) have decided that newspaper advertisements influence
decisions and play a significant part in the development of products (PURDEC).. Sorce and Dewitz (Sorce, 2007)
have found that magazine ads work better than TV. Pongiannan and Chinnasamy (Pongiannan, 2014) have
established strong media evidence that it is the most popular method among advertisers.
According to the aforementioned theories, CB is impacted by media at different levels of purchase. Prior research
has either confined the overall media influence (whether good or negative) or concentrated on the ratings of AWR
and PURDEC items. Consumers have a wide range of media options thanks to the 21st century media revolution.
To quantify the effects of media advertisements at different stages of CB, further research must be done. This
facilitates the educated media decisions made by advertisers.
Emotional reaction
One of the best methods for integrated marketing communication to emotionally compel customers to purchase
goods is advertising. Advertising influences consumer preferences, product awareness, and final decision-making.
Happiness is the state of being joyful, joyful, or joyful in a specific circumstance.
Arousal is a state of feeling, such as enjoyment, performance, boredom, or drowsiness, that varies from person to
person and in different settings.
Dominance: This term refers to the feelings of the person who is in charge or has the ability to act in a specific
circumstance.
This is clear when a customer views an advertisement for a product, recognises the product, and decides to
purchase it.(Goldsmith, 2002)

REVIEW OF LITERATURE (GLOBAL)

Marketing Impact and Policy:
According to research, the primary market for home goods like computers and other technical devices like
vacuum cleaners and washing machines is yet untapped. Advertisers still have the choice to decide if existing
homes need to be switched to, whether a more advanced version of the product is required, or whether a second
unit or units are required at home. In order to draw in the remaining customers, vendors must identify a specific
demand, a requirement for satisfaction for the remaining numbers, and the appropriate amount of their product.
Conditions like customer care or product care services, which are already starting to emerge in the Indian market,
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may be a part of the value supply. Marketers for these long-lasting products should rationally explain this to
potential customers and demonstrate the benefits of purchasing a refrigerator through an advertisement. Also,
new financial initiatives will encourage people to purchase more home appliances in our nation. (infokara, 2019)

Marketing Impact (4P method):

Product:
Refrigerators' aesthetics (look, colour) are important factors to take into account, so a variety of colours should
be offered to satisfy upscale clients. The primary aspects taken into account while acquiring a product are after-
sales services. When the product was purchased, a new function that provided more shelves for the refrigerator
door so that more bottles could be stored inside also became available.
Price: Cash Value is what all customers consider. While buying a product, the majority of individuals are
conscious of the price. Due to the negative connotations associated with inexpensive refrigerators, cheap pricing
can act as a barrier to social justice. Price is not a big barrier when it comes to providing the extra feature that
customers need.
Location: Although refrigerators are a complex product and clients are prepared to acquire them, the showroom
area is not the most popular choice. The showroom, however, ought to be situated near other rival businesses
because consumers love to compare. Many festivals are observed all year long since India is incredibly rich in
traditions and customs. Consumers love to purchase large items at festivals and special occasions, so the market
should seize this chance and provide a wide range of goods.
Promotion: Effective marketing requires good communication. Prospective clients go through three stages of the
purchasing process: pre-purchase, transactional, and post-purchase (i.e. after purchase).
Model AIDA:
Advertising campaign: A; awareness / attention - to bring the product to the consumer's attention;
I; interest - to pique interest in a specific good or service.
D; desire – to arouse interest in your product or service on two levels: first, in respect to the wants or demands of
the desired target; and, second, in comparison to rivals.
A; action - advertising to encourage the purchase of a good or service Citizens should be the main target of
advertisements because they have the greatest influence, particularly on collective decisions and investors.
Internet marketing is another source for information about refrigerators, so the product should be strongly
recommended online. The marketing should also highlight the product's style and aesthetic appeal to position it
as a home accent.
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CHAPTER 3: RESEARCH METHODOLODY

Research Methodology Questionnaire was used for conducting survey among consumers. Google form was used
for designing the questionnaire. Questionnaire was sent to various consumers through email, WhatsApp,
Facebook etc. and their response was recorded. Graphical presentation has also been derived from the google
forms.

CHAPTER 4: DATA ANALYSIS

4.1. Influence of advertisements.
Advertisements influence the consumer’s perception and buying behaviours. Using advertisements businesses
try to reach the targeted and potential consumers. Every business pays a hefty amount to advertise its products
and services and every business try to reach the maximum targeted audience as well. Before advertising the
products business conducts research of the consumer base as to know what type of advertisement will influence
its targeted audience

Graph 1 shows that 20% of the consumers have large influence, 60% have medium influence 6.7% have small
influence whereas 13.3% were not sure about the influence of advertisement on their buying behavior.

4.2 Advertisement as a tool to provide information.

Advertisements delivers helpful data to consumers that informs them about services and product selection or
choices, as well as comparing benefits, features and prices. With proper information consumers and businesses
often choose to purchase additional services and products. Advertisements provide benefits to the seller as
well as consumer. Sellers can do promotion of their services and goods through ads. On the contrary, consumers
can have the knowledge of discount deals and goods available at the market place, which helps them to take
the correct decision among various alternatives present in the market.

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Graph 2 shows that 76.9% of the consumers agrees and 23.1% of the consumers
Disagrees for the statement that “Advertising is beneficial to consumers because it
provides important information about goods and services.”

4.3 Online Advertisements.

Online announcements is one of the most useful and effective way in moment’s world for businesses to find new
guests, increase their reach and to increase their earnings and income. Paid hunt – also known as pay- per- click
advertising( PPC) and Paid Social – are most generally used advertising ways. Consumers were asked “ Do you
pay attention to online advertising? ”

Graph 3 shows that 40% of consumers pays attention to online advertisements whereas 13.3% of consumers do
not pays attention to online advertisements there is still 46.7% of consumers who sometimes pays attention to
online advertisements.

4.4. Going with new brands.

Announcements are meant to produce brand image, consumer perception about products and services and to
promote new goods and services. In order to establish a brand image a business spends a hefty quantum in creation
of its products therefore making a sense of trust in consumer’s mind.
Consumers were asked “Do you purchase products of new brand after watching advertisement?”

Graph 4 shows that 60% of consumer’s purchases products of new brands whereas 40% of consumers choose to
purchase the products of the brand they are familiar with.

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4.5. Frequency of advertisements

How frequently an advertisement is shown to an audience over a predetermined length of time is referred to as
the frequency of advertisements. Marketers try to strike a balance between being noticeable enough to have an
impact and not too persistent as to be intrusive or irksome. Depending on the medium, the intended audience, and
the objectives of the advertising campaign, this frequency may change.

Graph 5 shows that 37.3% of the people come across ads multiple times a day and 35.3% of the people come
across ads few times a week and the rest are as following

4.6 Consumers feel about advertisements

Customer opinions on commercials can be very diverse. While some people might find them amusing or
educational, others might find them obtrusive. The ability of an advertisement to grab the audience's attention and
affect their behaviour frequently depends on elements including the advertisement's relevance to the consumer,
the media through which it is given, and the advertiser's perceived credibility.

Graph 6 shows that how consumers feel about the advertisements 33.3% of them feel ads are annoying and 31.4%
have no difference in mood and 29.4% feel excited

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4.7 Effect of advertisements
An ad, or advertisement, is a form of marketing communication that aims to promote or sell a product, service,
or idea. The effect of an ad can vary depending on its message, target audience, and placement. A well-crafted ad
can raise awareness, generate interest, and ultimately drive sales or other desired actions, while a poorly executed
ad may be ignored or even have a negative impact on the brand.

Graph 7 shows that ads have made 64.7% of the people have purchases based on ads

4.8 How consumers feel about the nature of the advertisement

Customer opinions on commercials can be very diverse. While some people might find them amusing or
educational, others might find them obtrusive. The ability of an advertisement to grab the audience's attention and
affect their behavior frequently depends on elements including the advertisement's relevance to the consumer, the
media through which it is given, and the advertiser's perceived credibility.

Graph 8 shows 33.3% people feel ads are informative 27.5% feel they are manipulative and 29.4% feel they are
a mixed of both

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4.9 Have you ever avoided purchasing a product because of negative advertisements?

Consumers may avoid purchasing products due to negative advertisements that portray the brand or product
unfavourably or highlight issues that concern them, such as safety or environmental concerns. Negative
advertisements can also damage the reputation of a brand and erode consumer trust, resulting in decreased sales
and market share.

72.5% people have avoided a product if there was negative advertisements around it which shows how ads can
actually help

4.10 Do you think advertisements influence your perception of a product or brand?

Customer opinions on commercials can be very diverse. While some people might find them amusing or
educational, others might find them obtrusive. The ability of an advertisement to grab the audience's attention and
affect their behaviour frequently depends on elements including the advertisement's relevance to the consumer,
the media through which it is given, and the advertiser's perceived credibility.

60.8% people have been influenced by the advertisement about the product or brand that’s the majority

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