Professional Documents
Culture Documents
consumers purchase
Intentions
Abstract:
Purpose of this paper is to check the efficacy of advertising effectiveness
on consumers purchase Intention. Advertising effectiveness is basically
a strategy through which advertisers fulfill their advertising goals and
creates strong image in the minds of customers. Research being
conducted which includes the answers of three hundred respondents
regarding the impact of advertisement on consumers purchase Intention.
Basically the participants of the research were adults. This research
includes 10 variables out of which Purchase Intention is the dependent
Variable and rest of 9 variables is Independent. Main theme behind this
study was to check either advertisement has positive or negative impact
on the purchase intention. According to my findings consumers prefer to
purchase the product in case when the information that is provided is
clear and understandable for customers.Out of total 25.1 % of the
independent variables have strong relationship with dependent variable.
This value depicts that advertisements definitely have impact on the
purchase intention of consumers. Content, Theme and Animations that
are used in advertisements are considered as very important in order to
create string image in their minds. Selection of slots for advertisement
and repetition are also very important. Findings also show that
consumers used to prefer those products or brands with which they are
already familiar. They avoid taking risks in the form of trying new
products or brands. Most of the times customers are interested in the
products and they want to purchase it but repetition of advertisement
creates negative image in the minds of customers. In short advertisement
should contain relevant information and it should not advertise more
than requirement to get the attention of consumers.
Independent Variables
Dependent Variable
Purchase Intention
Acknowledgement
All the praises are for the Almighty Allah who bestowed me with the
ability and potential to complete this Research within due course of
time.
May Allah give long life with all the happiness of this world to my
lovely parentsand teachers.
Chapter # 1
Introduction
1.1 Overview of the topic:
Due to globalization world has become a global village. We need to
communicate with one another to convey our message. Advertising
ways are of many types that have been used now days to convey the
messages. TV advertisements are consideredas very important because it
leaves a positive impression on the minds of customers that ultimately
help them to create familiarity with the product or brand as well.
According to the literature review main focus of the research was to
check the effectiveness of the advertisement on the purchase intention of
the consumers. When the subject of particular advertisement is worthy
and message is easilyexplicablefor the target audience, than it becomes
point of fascination for the customers. Another goal of the advertisement
is that through advertisements advertisers spot light on the functional
benefits of the products with the help of those features than create
satisfactory and unique association in the minds of customers. All these
modules are also used to make the customers loyal.
Now a day companies are trying their best to bring innovation in their
advertising techniques to get maximum attention of customers.
Customers will prefer to purchase your product when they will get
relevant product from you and in future they will also give preference to
your product over others. Customers brand loyalty is just based how
beautifully company is advertising their products and services. If your
advertisement will be effective and you will provide relevant
information in the advertisement that will help the customers to decide
that this product is right according to his needs and he will surely grab
the product and they will also give preference to that particular brand in
future. Customer’s loyalty is based on the quality that company is
providing and how they are differentiating their self from other ones.
According to the literature review and research suggested that brand
loyal customers were willing to pay extra in order to get particular
product or services because they feel that other brands could never fulfill
their need (Jacoby and Chestnut 1978; Pessemier 1959; Reichheld
1996).Television advertisements are now a day considered as an
important and easiest way of transferring the information to their target
audience. Television as a medium has changed the way of thinking,
perceiving the things for world. Television advertisements have played a
very important role in order to transform the attitude of people towards
purchase intention. Amount of time people spend on advertisements in
order to get the information is multiplied with the new products that
enter in to the market.
The way people perceive the things is basically based on how the
company has advertised its products and how beautifully they are
spotting light on the content of the advertisement.Research suggested
that product availability information plays a key role to create strong
image in the minds of targeted audience. Main focus of the people is to
get the information about the brand by sitting at their homes.
Advertising should have a clear message that is easily understandable
for everyone with the aim of convincing the customers towards
purchasing products or services. Customers usually have no idea about
the particular product or brand if they are not familiar to them. In this
case advertisement plays very important role in order to provide some
basic information about the products so that customers can easily make
up their minds about the product and company as well. Main goal the
advertising is to increase the knowledge of the customers about the
brand for which they are looking for. Companies are trying their best to
provide relevant information to their customers about the basic use of
product and about the availability of the product so that they can easily
avail the product without any hassle.
It has been seen that consciousness of customers has been increasing day
by day. They only prefer those brands and their products that has strong
image in their minds. They know very well which brands are good for
them and which brands can cause harmful effect on their body after
using them. In order to give clear message to target audience advertisers
are advertising their brands in such a way that their main focus is on the
ingredients and spotting light on the use of product that helps the
customer to make decision easily. Consumers avoid all those brands that
do not communicate well about the basic use of product and do not focus
on advertising appeals to get the maximum attention of customers.
Customers will only get satisfaction when they will like the content of
the advertisements. Research suggested that customers are looking for
quality based food that will keep them healthy (Giffort & Bernard 2006;
Padel & Foster, 2005; Lockie et al. 2004).
Interest
Action
Desire
Attention
· Main purpose for this research was to check the dependence of all
these variables on each other’s experimentally and how we can create
positive platform for customers so that they can start taking TV
advertisement a better platform for getting the information regarding the
products and services.
Chapter # 3
Methodology & Analytical Choice:
3.1 Research Type& Research Period:
This study includes quantitative based data for the completion of Thesis.
It has been quantified with the help of questionnaire and it was
distributed among the students of different colleges and universities of
Faisalabad to get their point of view regarding the impact of
advertisement on their purchase Intention. Basic purpose was to know
about the key things of an advertisement that creates strong image in the
minds of consumers and they prefer to purchase the product after getting
satisfaction from advertisements. This research is used in order to check
the attitude and behavior of the customers after watching an
advertisement. Quantitative data collection is considered as more
structured as compared to Qualitative data collection.
Data that is used for this research is primary and it was collected with of
help of questionnaire. Primary data is collected from the individuals to
clarify what factors are appealing for them and what factors creates
negative image in the minds of customers.
Good response from the consumer’s side is highly based on what they
actually get after watching the advertisement. When advertisers
highlight the information that is according to the requirements of
customers, than they can easily understand why this product is of high
quality and why this product is different from other products that are
available in the market. The only thing that attracts the customer towards
the particular brand is good use of animations, music, appeals.
Conscious level of consumers has been changing time by time. They
only prefer those products that are of high quality and it cause no effect
on their body. Advertisers should keep in mind the mental situation of
consumers and spot light in the ingredients and appeals so increase the
purchase intention.
Strongly Agree
Agree
Agree Somewhat
Undecided
Disagree Somewhat
Disagree
Strongly Disagree
3.5.2Respondents Profile:
Target audience was college and university students as they are highly
keen to spend their time in front of TV. College students are not highly
mature & they prefer to purchase the products in case they find the
advertisement appealing and informative. Advertisers’ main focus is
always on College and university students as they play very important
role in order to lead the business towards success or failure. So
questionnaire was distributed among the college and university students
of Faisalabad and Lahore to get their point of view. Main purpose was to
check either advertisement cause effect on the behavior or not. Coolest
themes and the animations that advertisers use creates strong image in
the minds of customers and they start associating the brand with those
particular animations.
Age bracket that was chosen for this research was ranging from 16 – 35.
Faculty of Colleges and Universities were also falling in this age
bracket. 32.4% respondents were single while rest of them was married
according to the checked results. Questionnaire was also distributed
among the faculty members and most of the students of post doctorate
level were married. This age bracket includes both Males and Females.
Chapter # 2
Literature Review:
Edell and Burke 1987 conducted a study to explain how the
advertisements cause impact on the purchase intention of consumers.
Main focus of the research was to check the effectiveness of the
advertisement on the purchase intention of the consumers. It has been
seen that consumers were bombarded with lots of marketing messages
by different companies in order to get their attention. Copiousness of
these messages forces marketers to focus on the effectiveness of
advertisement. According to Chandran and Menon in 2004 they
identified the most important components that were the part of
advertisements in order to create strong image in the minds of consumer.
There are different ways through which messages were framed to create
stronger impact on the memory of people like emotional appeal and fear
appeal. All these appeals were used to create strong linkages between
customers need and the products that company is providing. Emotional
appeal is usually considered as a special method of convincing that is
developed to create emotional responses. According to the research we
can say that feelings of the customers and their thoughts play a very
important role in the effectiveness of the advertisement.
300 respondents were selected according to the first article. Purpose was
to check the effectiveness. Target audience was the students of
universities as they were highly engaged in purchasing the products.
They were falling in the age bracket of 18 -30. Multiple group
interviews were conducted to get their point of views. Result showed
that the way customer’s perceived about the brand played a key role in
order to make the customer brand loyal. Results showed that customers
become brand loyal when they get relevant information through
advertisements and company provides them same product according to
the requirement of customers.
According to the second article 550 respondents were selected and they
were falling in the age bracket of 22 – 35. Researcher targeted the
university students and house wives. Questionnaire was distributed
among them and telephonic interviews were also conducted to get their
opinion. According to the result, consumers brand loyalty based on the
quality of services that provided by the company. When the get quality
based product and relevant information all the time they become loyal
and also spread positive words of mouth.
Data was collected through mails survey and telephonic calls according
to the first article. Respondents belong to New Zealand. Sampling frame
consisted of 1000 respondents. Research showed that consumers
purchase the product by keeping in mind their economic condition,
quality of the product and value for money. Other important factor was
the ethnocentrism. Consumers who belong to High Ethnocentric areas
preferred the products of their home country as compared to the other
ones.
According to the first article data was collected from 222 consumers.
Questionnaires were distributed among them in order to check how
health consciousness affects their purchase intention. Out of 222, 179
were females as they were highly engage in purchasing food related
items and rest of them was males. Their age ranged from 15 to 65.
Result showed that health consciousness has very strong impact on
purchase Intention of the customers.
According to the second article data was collected from 500 respondents
in the form of questionnaires and through interviews as well. Age ranged
from 18 to 50 which included students and family members. According
to the result health conscious consumers were focusing more on the
advertisements before selecting any product. They preferred only those
advertisements of the brands with which they were loyal.
According to the research customers were focusing both on price and
quality of the product to get best product for them. Both these
determinants were considered as very important part while purchasing a
product. Companies were designing their advertisements in such a way
so that customers could easily found the product more suitable in terms
of both quality and prices. Customers were highly conscious about the
prices of the product. Quality played a very important role as well.
According to the first article data was collected from 545 respondents by
doing survey at different malls while adults were shopping with their
friends and family members. Their opinion was gathered in the form of
interviews and questionnaires. They were provided information related
to the topic of research. Age ranged from 18 to 35. Results showed that
consumers were focusing on the price and quality of the product while
purchasing products and services. They compared the quality of the
product with price that they are paying.
According to the second article data was collected from 300
respondents. It was collected in the form of online survey by placing the
questionnaires at different websites. Participants include both males and
females and their age ranged from 25 to 45. Hypothesis resulted that
consumers were focusing on the price and quality of the product while
purchasing products. They were in search of best quality product on
average price.
Research showed that most of the customers were risk averse. They
preferred to purchase high priced product on its first time in order to
avoid the risk of bad quality of the product. Their main focus was to get
the best quality product despite of the fact they had to bear high price for
it (Shapiro 1968, Lambert 1972). When the risk was high they preferred
to purchase high priced product. While on the other hand when the risk
was low they preferred to purchase low price goods.
According to the first article data was collected from 1000 respondents
in Germany. Target audience included Adults and their parents as they
preferred to go for shopping for themselves or for their younger
children. Data was collected verbally and in the form of questionnaires
as well. Verbal method was used for Parents and questionnaire was used
for Adults. Result showed that people associate the quality with the price
of the product. They believed that they will only get high quality product
when they will pay good price for the product.
According to the first article data was collected from 450 respondents.
Out of which 66% respondents were Males and Females were around
34%. To judge the data of respondent’s 7 points Differential scale was
used. CFA test was used to check how the purchase intention of
customers varies when they see an advertisement.Result suggested that
purchase intention of the customers were based on the quality of the
information that they were providing and their economic condition as
well.
Sample of 800 respondents was selected in second article and they were
falling in the age bracket of 22 to 55. Two different methods were used
to capture the thinking of respondents. Methods include online survey of
the market and distribution of questionnaire among them. Result showed
that the way advertisers advertised their advertisement and the
availability of relevant information played a key role in order to make
the customers feel positive about the brand.
Sample size of 990 respondents was selected in first article. Males were
45% while on the other hand population of Females was 55%. Data was
collected in the form of questionnaires by visiting their offices and
homes. They were falling in the age bracket of 23 to 45. Result showed
that availability played very important role in order to increase their
drive towards products. Consumers were always looking for related
information for which they are looking for. In short there is a direct
relationship between the availability of the information and consumers
positive purchase intention.
Chapter # 4
4.1 Estimation Results:
Results showed that only two variables are showing significant
relationship with dependent variable as compared to the rest of variables.
People are paying more attention towards advertisements for the sake of
getting appropriate and quick response for saving their time and money.
According to the results health consciousness and product availability
information have significant relationship with dependent variable. Time
by time consciousness of people has been changing. They are paying
more attention towards selection of products for their better health. They
are always looking for the ingredients of the products while purchasing
them. That’s why effectiveness of advertisements is very important to
describe the content of the message clearly according to their needs.
Advertiser’s main goal is to provide relevant and complete information
in advertisements so that customers can easily understand about the
products without any hassle by sitting at their homes.
In the case of ANOVA table, critical value of Alpha (a) is usually set as
0.05. If the value will be less than this than it will be considered as
significant.If the value will be higher than .05 than it will not be
considered as significant. Here the exact value of significance is .000.
This value is less than the criteria that has been set so the effect would
be considered as statistically significant in this situation.
From the calculated results we can see that all values of B are positive
except two variables that are variety seeking and price value
consciousness. That variable whose value of B is positive shows that all
these variables have strong relationship with dependent variable.
Advertising appeals play a very important role in order to increase the
purchase intention of customers. Similarly brand loyalty plays a key role
to increase the purchase intention of customers. It has been seen that
customers are always looking for quality based products. They want to
fulfill their needs in a well-mannered way and in a different way as well
than other customers that are existing in the market and are fulfilling
their needs. According to the results consumer buying behavior is just
based on economic condition of the person. They are always looking for
those products that are well according to their needs and that are not
expensive as well. They are always in favor of finding balance between
the price and satisfaction level that they will get after purchasing the
product. It has been seen that consciousness of customers has been
increasing day by day. They prefer those products that are good for their
health. Hence the consciousness of customers has strong relationship
with the purchase intention of customers. Advertisers main focus is to
provide the relevant information and that is easily absorbable for the
customers to get the maximum attention of customers. At the end
product availability information is another key for getting the attention
of customers. When customers will be having clear information
regarding the product than they will make quick decisions regarding
purchasing of product. While all those variables whose value of B is
negative show that these variables don’t have significant relationship
with dependent variable and they are negatively associated with the
dependent variable. For those variables that have negative value of B
shows that by adding one unit in variety seeking and price value
consciousness have negative impact on dependent variable according to
their values.
Result shows that students that were falling in the age bracket of 20 – 23
were highest while collecting the results as compared to other age
brackets. They were 132 and it was 44.1% of the total sample
population.
This analysis shows the results of all the variables in the form of
kurtosis, Skewness, minimum and maximum values. Skewness is
basically used to measure the symmetry and lack of symmetry that is
existing in the form of value. Its value should be closer to zero. If its
value is negative than it means that data is skewed left and in the case of
positive value it shows that data is skewed right. If the data is skewed
left it means that left tail is longer with respect to right tail. If the data is
right tail it means that right tail is longer with respect to left tail.
In the case of Brand Loyalty its value is 0.036. Its value is not closer to
zero but still it’s positive. It shows that data is skewed right. In the case
of Advertising Appeals its value is 0.615. This shows that data is skewed
right. In the case of Buying Behavior its value is 1.354. This value is
higher than 1 which shows that data is skewed right. Value of Health
Consciousness is 1.341. Again this value is higher than 1 and skewed
right. Value of Price Value Consciousness is 1.029. This value is greater
than 1 and it also shows that data is skewed on right side and right tail is
longer than left tail. Value of Variety Seeking is 0.660. This value is not
closer to 1 but still it is positive which shows that data is skewed on right
side. Value of Perceived Behavior is 0.595. This value is again skewed
towards right side. Value of Quality Features is 1.085 and skewed right.
Value of Product Availability Information is 1.138 and skewed right.
Last variable is Purchase Intention (PI) its value is 0.746 and it is also
skewed towards right side.
While on the other hand Kurtosis is basically used to check either the
data is heavy tailed or light tailed by keeping in mind normal
distribution. If data is having high kurtosis it will show high tail. In the
case of low kurtosis data will be having low tail.
4.3 Correlation Summary:
In the case of correlation table of descriptive stats table provides the
details of mean and standard deviation of each variable. For example, in
a sample of 299 customers surveyed, the average value of purchase
intention is 5.6 and on average the difference between values is 0.55.
Similarly in the case of product availability information sample size is
299. Average value of product availability information is 5.6 and on
average difference between the values is 0.63. In the case of quality
features, its sample size in 298 and average value is 5.5 and average
difference between the values is 0.56. In the case of perceived behavior
its sample size is 299 and average value is 5.4 while average difference
between the values is 0.60. In the case of variety seeking its sample size
is 299 and average value is 5.6 and average difference between the
values is 0.52. Price value consciousness has average value of 5.8 and
average difference between the values is 0.52 while its sample size was
298. Health consciousness has sample size of 298 and its average value
is 5.7 while its average difference between the values is 0.55. In the case
of Buying Behavior its sample size was 299 and its average value was
6.0 while the average difference between the values is 0.54. Advertising
appeals has average value of 5.63 and average difference between the
values is 0.53 while its sample size was also 299. Last variable is Brand
Loyalty. Its sample size was 299 and average value was 5.7 and average
difference between the values was 0.49.
All these values of mean shows that Buying Behavior has the highest
value of mean that is 6.03, while product availability has the highest
value of standard deviation that is 0.64 approximately.
Result shows that variety seeking has stronger relationship with price
value consciousness that is 0.570 than other variables that are available
in the list.
5.2 Conclusion:
According to the results we can easily see that advertisements do have
impact on the purchase intention of the consumers. Consumers attracts
towards those advertisements that are according to their requirements
and that are attractive as well. We can also see that males are more likely
to get information through advertisements as compared to females.
Females prefer to visit the shops and Malls for the sake of purchasing
any product while on the other hand Males prefer to judge the product
by sitting at their homes through advertisements or on the basis of words
of mouth before purchasing any new brand. They prefer to purchase
only those products or brands with which they are loyal and they have
been purchasing from last couple of years to decrease the rate of risk.
Regression table also shows that only 25.1% of the independent
variables have stronger relationship with dependent variables. People
prefer to see the advertisements for the sake of getting appropriate
information without wasting their time but the trend is not highly
captured in the market. People prefer to visit the markets. It will help
them to relax their self and they can also get the information about the
products as well. Correlation table basically shows the relationship of
Independent variable with dependent variable. Result shows that none
of the variable has value closer to 1. All these things showthat
effectiveness of advertisements has been increasing day by day. Time is
not far away when they will find it much easier to get the relevant
information by sitting at their homes without any hassle. Still people
prefer advertisements to get relevant information about their favorite
brand but still there is a gap that exists between the effectiveness of the
advertisements and customers preference towards those advertisements.
It is the responsibility of the advertisers to give relevant and appropriate
information in the form of advertisements so that they can easily get the
attention of maximum customers. In order to create stronger image in
the minds of targeted audience it is very important that companies
should advertise those brands and products with which customers are
more loyal and follow the same pattern that will help them to grab the
attention of customers in a well-mannered way. Researcher pointed out
that advertisements are playing a key role to change the behavior and
buying pattern of customers. Advertisers are getting the attention of
customers by showing the innovative and animated based
advertisements to get the attention of maximum customers. Beautiful
packaging and attractive advertisements are the main source of getting
the attention of customers.