IMPACT OF ADVERTISEMENT ON NEW

CUSTOMER ADDITION IN RETAIL

A thesis submitted in partial fulfilment of requirements for
Masters of Business Administration
International Business management
March 2017

Under the guidance of

Prof. Nitin Kumar

Department of International Business, UPES
UPES- Dehradun

Submitted by-

Deepika Nigam
SAP ID-500048285
Enrolment Number: R740215051

MBA International Business Management

2015-2017
College of Management & Economics Studies, UPES, Dehradun

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 DECLARATION

I declare that the work embodied in this dissertation, entitled IMPACT OF

ADVERTISEMENT ON NEW CUSTOMER ADDITION IN RETAIL, is the

outcome of my own work conducted under the supervision of Prof. Nitin Kumar, at

College of Legal Studies, University of Petroleum and Energy Studies, Dehradun.

I declare that the dissertation comprises only of my original work and due

acknowledgement has been made in the text to all other material used.

Signature & Name of Student

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 CERTIFICATE

This is to certify that the research work entitled IMPACT OF ADVERTISEMENT ON

NEW CUSTOMER ADDITION IN RETAIL is the work done by Miss. Deepika

Nigam under my guidance and supervision for the partial fulfilment of the requirement of

College of Management & Economic Studies, University of Petroleum and Energy

Studies, Dehradun.

Signature & Name of Supervisor

Designation

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Date

ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of this project

would be incomplete without the mention of the people who made it possible. I am also

grateful for having a chance to meet so many wonderful people and professionals who led

me though this period.

Bearing in mind previous I am using this opportunity to express my deepest gratitude and

special thanks to my mentor (Prof. Nitin Kumar) who despite being extraordinarily busy

with his duties, took time out to hear, guide and keep me on the correct path and allowed

me to carry out my dissertation.

It is my radiant sentiment to place on record my best regards, deepest sense of gratitude

to the Head of Department (Dr. Prasoom Dwivedi) for his careful and precious guidance

which was extremely valuable for my study both theoretically and practically.

I perceive this opportunity as a big milestone in my career development. I will strive to

use gained skills and knowledge in the best possible way.

Deepika Nigam

ROLL NO: R740215051

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SAP ID: 500048285

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 INDEX
Chapter No. Topic Page No.

1 Introduction 7-21
2 Business Problem 22-23
3 Review of Literature 24-31
4 Research Methodology 32-33
5 Findings 34-43
6 Conclusion 44-45
7 References 46-48

8 Appendices 49-52

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 ABSTRACT

This Study sets out to find the impact of advertising on new customer addition in retail. Advertising is a

subset of promotion mix, which is one of the 4 ps in the marketing mix, that is product, price, place

and promotion. Questionnaire and Oral interview were used in collecting the data for the research. The

finding reveals that advertisement played a role in influencing change of existing networks due to

reliability of service and cost effectiveness. As a promotional strategy, advertising serves as a major

tool in creating product awareness in the mind of a potential consumer to take eventual purchase

decision. The results will help the service providers in building confidence in the minds of their

consumers in terms of purchase decision.

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INTRODUCTION
Retail Industry

The word Retail means the sale of goods or commodities in small quantities directly to

consumers .Retailing can be defined as a distribution channel function, where an organization,

buying the products from supplying firms or manufacturing the products themselves, sells these

directly to consumers. Many a times, consumers buy from an organization who is not the

manufacturer of the products, rather it is a reseller of the products obtained from others.

However, in some cases we may find the product manufacturers operating their own retail outlets

in a corporate channel arrangement. Retailing is beneficial to both consumers and sellers. On the

one hand it enables the consumers to purchase small quantities of an assortment of products at a

reasonably affordable price; on the other it offers an opportunity to suppliers to reach their target

market.

The Indian retail industry is divided into organised and unorganised sectors. Organised

retailing refers to trading activities undertaken by licensed retailers, that is, those who are

registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and

retail chains, and also the privately owned large retail businesses.

Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing,

for example, the local kiranashops, owner manned general stores, paan/beedi shops, convenience

stores, hand cart and pavement vendors, etc.

Indias retail sector is wearing new clothes and with a three-year compounded annual growth rate

of 46.64 per cent, retail is the fastest growing sector in the Indian economy. Traditional markets

are making way for new formats such as departmental stores, hypermarkets, supermarkets and

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specialty stores. Western-style malls have begun appearing in metros and second-rung cities

alike, introducing the Indian consumer to an unparalleled shopping experience.

Retail Formats In India

Hyper marts/supermarkets: large self-servicing outlets offering products from a variety of

categories.

Mom-and-pop stores: they are family owned business catering to small sections; they are

individually handled retail outlets and have a personal touch.

Departmental stores: are general retail merchandisers offering quality products and services.

Convenience stores: are located in residential areas with slightly higher prices goods due to the

convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of

products and services including entertainment and food under a single roof.

E-trailers: are retailers providing online buying and selling of products and services.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small

items can be bought via vending machine.

Specialty stores: are retail chains dealing in specific categories and provide deep assortment.

Mumbai's Crossword Book Store and RPG's Music World are a couple of example.

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Profile of the Major Players

Pantaloons Retail
Pantaloons Retail (India) Limited, is Indias leading retail company with presence across

multiple lines of businesses. The company owns and manages multiple retail formats that

cater to a wide cross-section of the Indian society and is able to capture almost the entire

consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the

company operates through 4 million square feet of retail space, has over 140 stores across

32 cities in India and employs over 14,000 people. The company registered a turnover of

Rs 20.19 billion for FY 2005-06. Pantaloons Retail forayed into modern retail in 1997

with the launching of fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big

Bazaar, a hypermarket chain that combines the look and feel of Indian bazaars, with

aspects of modern retail, like choice, convenience and hygiene.

The groups subsidiary companies include, Home Solutions Retail India Ltd, Pantaloons

Industries Ltd, Galaxy Entertainment and Indus League Clothing.

Lifestyle International
Lifestyle International Holdings Ltds principal activity is the operation of lifestyle

department store and retail outlets. It focuses on high-end department store format. As of

December 31, 2005, Lifestyle International operated its retailing business through two

brand names, SOGO and Jiuguang.

Shoppers Stop
The foundation of Shoppers Stop was laid on October 27, 1991 by the K. Raheja Corp

group of companies. From its inception, Shoppers Stop has progressed from being a

single brand shop to becoming a Fashion & Lifestyle store for the family.
Shoppers Stop is the only retailer from India to become a member of the prestigious

Intercontinental Group of Departmental Stores (IGDS).

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 Trent (Tata)
Trent (Tata) was established in 1998; Trent operates some of the nations largest and

fastest growing retail store chains. A beginning was made in 1998 with Westside, a

lifestyle retail chain, which was followed up in 2004 with Star India Bazaar, a

hypermarket with a large assortment of products at the lowest prices. In 2005, it acquired

Landmark, Indias largest Book and music retailer.

In a recently signed deal, Trent has agreed to anchor 12 malls set up by DLF Universal Ltd

across the country, at its Westside, Landmark and Star India Bazaar outlets. This amounts to

about 27 locations, totalling to about a million square feet of space.

GROWTH OF RETAIL INDUSTRY IN INDIA

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An increasing number of people in India are turning to the services sector for employment dueto

the relative low compensation offered by the traditional agriculture and manufacturing sectors.

The organized retail market is growing at 3.5 per cent annually while growth of unorganized

retail sector is pegged at 6%. The Retail Business in India is currently at the point of inflection.

Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian

and multinational companies in the next 5 years.

According to report, organized retail accounts for 7% of Indias roughly $435 billion retail

market and is expected to reach 20% by 2020.Organized retail has a 31% share in clothing and

apparel and continues to see growth in this sector.

According to department of Industry Policy and Promotion Cumulative, FDI inflows in single

brand retail trading stood at US$ 44.45 million during April 2000 to September 2011.

Indian retail sector is wearing new clothes and with a three year compounded annual growth rate

of 46-64%, retail is the fastest growing sector in the Indian economy. The sector is the second

largest employer after agriculture, employing more than 35 million people with wholesale trade

generating an additional employment to 5.5 million Crore.

The Governments initiative to allow 51 per cent foreign direct investment (FDI) in multi-brand

retail has been a subject for debate for quite some time now. Indian retail sector has therefore

attracted the attention of people from various fields including academia, industry, research

organisations etc.

CURRENT SCENARIO OF INDIAN RETAIL:

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 Unorganized market; Rs. 583,000 crores.

Organized market; Rs. 5,000 crores.

5 x growths in organized retailing between 2000-2005.

Over 4000 new modern outlets in last 3 years.

Over 5,000,000 sq. ft. of mall space under development.

The top 3 modern retailers control over 750,000 sq.ft of retail space.

Over 400,000 shoppers walk through their doors every week.

Growth in organized retailing on par with expectations and projection of

the last 5 years: on course to touch Rs. 35,000 crore or more by 2005-06.

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GROWTH IN RETAIL

TABLE1. 1: GROWTH IN RETAIL OUTLETS (MILLIONS):

Year Urban Rural Total
1978 0.58 1.76 2.35
1984 0.75 2.02 2.77
1990 0.94 2.42 3.36
1996 1.80 3.33 5.13

Source: www.indiainfoline.com

TABLE 1.2: COMPOSITION OF URBAN OUTLETS:

Retail outlet Composition
Grocers 34.7%
Cosmetic stores 4.0%
Chemist 6.3%
Food stores 6.6%
General stores 14.4%
Tobacco, pan stores 17.0%
Others 17.0%

Source: www.indiainfoline.com
TABLE 1.3: COMPOSITION OF RURAL OUTLETS:

Retail outlet Composition

Grocers 55.6%
General stores 13.5%
Chemists 3.3%
Others 27.6%
Source: www.indiainfoline.com

Advertising

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Advertising is a subset of promotion mix, which is one of the 4 ps in the marketing

mix, that is product, price, place and promotion. As a promotional strategy, advertising

serves as a major tool in creating product awareness in the mind of a potential

consumer to take eventual purchase decision.

Advertising, sales promotion and public relations are masscommunication tools

available to marketers.
Advertising through all mediums influence audiences, but television is one of the

strongest medium of advertising and due to its mass reach; it can influence not only

the individuals attitude, behavior, life style, exposure and in the long run, even the

culture of the country. (Latif & Abideen, 2011)

(Huang et al., 2012) are of the view that consumers are not only sensitive to price but

also the firms advertising efforts. Polo et al 2011, shows that mass advertising exert a

significant influence on the probability of terminating an existing incumbent

relationship.
Advertising is only one element of the promotion mix, but it often considered

prominent in the overall marketing mix design. Its high visibility and pervasiveness

made it as an important social and encomia topic in Indian society. Promotion may be

defined as the co-ordination of all seller initiated efforts to set up channels of

information and persuasion to facilitate the scale of a good or service. Promotion is

most often intended to be a supporting component in a marketing mix. Promotion

decision must be integrated and co-ordinated with the rest of the marketing mix,

particularly product/brand decisions, so that it may effectively support an entire

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marketing mix strategy. The promotion mix consists of four basic elements. They are:

-
1. Advertising
2. Personal Selling
3. Sales Promotion
4. Publicity
1. Advertising
Advertising is the dissemination of information by non-personal means through paid

media where the source is the sponsoring organization.

2. Personal selling
Personal Selling is the dissemination of information by non-personal methods, like

face-to-face, contacts between audience and employees of the sponsoring organization.

The source of information is the sponsoring organization.

3. Sales promotion
Sales Promotion is the dissemination of information through a wide variety of

activities other than personal selling, advertising and publicity which stimulate

consumer purchasing and dealer effectiveness.

4. Publicity
Publicity is the disseminating of information by personal or non-personal means and is

not directly paid by the organization and the organization is not the source.
Advertising Objectives
Each advertisement is a specific communication that must be effective, not just for one

customer, but for many target buyers. This means that specific objectives should be set

for each particular advertisement campaign. Advertising is a form of promotion and

like a promotion; the objectives of advertising should be specific. This requires that

the target consumers should be specifically identified and that the effect which

advertising is intended to have upon the consumer should be clearly indicated. The

objectives of advertising were traditionally stated in terms of direct sales. Now, it is to

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view advertising as having communication objectives that seek to inform persuade and

remind potential customers of the worth of the 7 product. Advertising seeks to

condition the consumer so that he/she may have a favourable reaction to the

promotional message. Advertising objectives serve as guidelines for the planning and

implementation of the entire advertising programme.

The Positive Effects of Advertisements

Advertisements are messages paid for by a business or advertiser and delivered via a

mass medium with the attempt to persuade a target audience to like a brand, develop a

more favorable attitude or intend to buy. Small businesses often have limited budgets

to spend on advertising, but the positive effects are often worth it.

Awareness

Simply reaching out to the market to let them know you exist is a primary initial

objective of advertising. No matter how great your product or service, if no one knows

you exist, you cannot sell to them. An effective and often repeated advertisement helps

your target audience become more familiar with your brand and ideally recall it when

a need arises for which your brand intends to meet.

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 Induce Business

Advertisements are sometimes intended to induce immediate sales and revenue.

Presentation of sales promotions through ads are a way to drive business quickly.

Television and radio ads can communicate your message. In print advertisements, such

as with magazines and newspapers, you can include sales promotion tools, such as a

coupon, right in the ad. New businesses often use promotions to build a customer base,

but they are also used to sell excess inventory and create cash flow when needed.

Information and Education

In his January 2011 article "Unappreciated Benefits of Advertising and Commercial

Speech" for the website The Technology Liberation Front, Adam Thierer points out

that advertisements sometimes serve to inform and educate consumers. This is

especially true when new brand or products are introduced to the market or when

product complexity means more education is required. Understanding the value of an

advertiser's brand relative to the needs they have helps consumers make more

informed decisions.

Return on Investment

From a financial standpoint, advertisements should generate a return on investment,

indicates Dan Keen of Break Studios in his April 2010 article "10 Benefits Of

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Advertising." Advertisements cost money to develop and place. Companies consider

how much return of investment they get in the form of heightened consumer

awareness, improved brand sentiment or direct sales. Evaluating results of

advertisements is vital for companies to confirm a return on investment and to avoid

wasteful messages that do not accomplish the intended results.

RETAILERS IN INDIA

1) K. Raheja Group

Shoppers stop
Home Stop
Mother care
Hyper city
Crossword
Planet M

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2)Tata Trent

Westside
Star India Bazaar
Landmark

3) RPG Group

Spencers supermarket
Spencers daily
Spencers hypermarket
Music world

4) Reliance Group

Reliance fresh
Subhiksha

5) Bharti Group
6) Aditya Birla Group

7) Caf Coffee Day

8) Pantaloon retail (I) Pvt. Ltd

Pantaloons
Big bazaar
Food bazaar
Fashion station
All
Blue sky
E Zone
Collection I
Home Town
Central Mall

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TABLE 1.1: TOP 20 RETAILERS WORLD WIDE

Retailers Sales (US$)

1 Wal-mart Stores, Inc 163,532

2 Carrefour group 52,196.10
3 The Kroger Co 45,352
4 Metro A G 44,163
5 The Home depot INC 38,434
6 Albertsons inc 37,478
7 ITM Enterprise SA 36,762
8 sears, Roebuck and co. 36,728
9 Kmart Corporation 35,925
10 Target Corporation 33,702
11 J.C. penny Company, Inc. 31,503
12 Royal A hold 31,222
13 Safeway Inc 30,801
14 Rewe-Gruppe 30,578
15 Tesco PLC 30,404
16 Ito-Yokado Co., Ltd. 30,237
17 Edeka-Gruppe 30,002
18 Costco Companies, Inc 26,976

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 19 Tengelmann 26,509
warenhandelsgesellschaft
20 The daiei, Inc 26,486

Business Problem

The purpose of this study is to construct a scale to assess the efficacy of advertising

effectiveness. Advertisement is defined as one-way paid communication through

a medium in which the sponsor is identified and the message is controlled by the

sponsor.

There is a shortage of marketing scales in India and the scales developed in other

countries are not necessarily appropriate for use in India. Advertising effectiveness is a

strategy by which advertisers gain their stated advertising objectives.

In todays liberalized and globalized Indian economy, the utmost concern of

advertisers is that of making advertising effective. Marketing research companies

equips the advertiser with the valuable information and knowledge about the
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consumers needs wants, preferences and demand. Ad makers and agencies can use

this information to design their advertisement layout. Knowing about advertising

effectiveness is very important for the marketers as large sums of money are poured

into advertising.

According to the authors advertising effectiveness to a great extent is dependent on

product trial, pictorial and verbal components of an ad, competitors advertising

strategies and the length of an ad.

Effective ads work on two levels:

First, they should satisfy consumers objectives by engaging them and delivering a

relevant message.

Second, the ads must achieve the advertisers objectives.

There are three effectiveness factors:

First: advertisers try to get consumers to perceive at least notice - their ads.

Second: advertisers hope consumers will either learn something or be persuaded by

something in the ads.

Third: advertisers try to get consumers to behave in a certain way ideally, to buy the

product in the advertisement.

Objective of Study

To determine the effectiveness of advertisement in new customer addition in

retail industry.
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Review of Literature

This study provides an overview of the different stages that have historically taken

place in market research applied to measuring the effectiveness of advertising. Several

studies have been undertaken in the field of retail sector in India. Besides, one may

also find articles in newspapers, business magazines relating to retail sector in India.

Few of them are mentioned here:

SubhadipMukherjees study examines the government policies of different

countries including India in respect of unorganized and organized retail sector.

The study examines whether, for the small and unorganized retailers to sustain

in this big fight the government provide a tight legal framework along with

economic support. The study finds that small as well as big domestic retail

chains had been helped by the governments of different countries (including

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 India) through formulating appropriate policies over time, by providing capital

support and/or formulating strict legislations to restrict entry of foreign

retailers in their respective countries.

An article in Business Standard summarises the findings of India Ratings

regarding future prospects of Indian retail sector. These findings present a

'negative outlook' for the retail sector and expects luxury segment to be the

worst hit in 2013. According to the report, the major factor accounting for sales

growth in 2012 was discount offers by companies and the trend is likely to

continue in 2013.
A report published by Corporate Catalyst India, focuses on segment analysis of

Indian retail market, Key players and profiles of Key players, business models

for entry in Indian markets and opportunities and challenges in retailing.

Expressing experts opinion, the report states that in future, the retail industry

in India will be a major employment generator. It further says that the market

share of organised modern retail being just over 4 per cent of the total retail

industry in 2009, it leaves a huge untapped opportunity. Fashion retailing,

which commands a large chunk of the organised retail business in India, has

indeed been responsible for single handily driving the business of retail in

India.
An another report published by Delloite titled Indian Retail Market Opening

more doors (2013) is mainly focused on government policy on multi-brand

retail trade-its evolution, policy implications and political landscape with

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 respect to new FDI policy. The report states that various policy conditions for

FDI in multi-brand retail makes mass grocery and apparel the two most

favourable segments. Multi-brand specialty retail segment such as Beauty &

Wellness and Consumer Electronics are still in their nascent stage. Their

current market size may not hold a big potential for foreign retailers.
Research article titled Sector Profile, gives a brief description of current

status of the retail sector, its future scope and challenges faced by the sector.
PricewaterhouseCoopers (a multinational professional services firm), Indias

report, Winning-in- Indias-retail-sector, Factors for success, 2011, focuses

on the main drivers, trends and issues in Indias retail sector. It also presents an

overview of the key tax and regulatory issues, a discussion on the benefits of

modern trade, factors for succeeding in the Indian market. The report states

that large size of Indian retail market, low organised retail penetration, strong

GDP growth, increasing personal incomes, large number of Aspirational

consumers (middle-class, young Indians, rural population, etc.) make India an

exciting and dynamic retail destination. It further states that the Indian retail

market is evolving rapidly, becoming more competitive and retailers

understand the importance of meeting consumer demands. In such a

competitive environment, the main driver of competitive advantage will be

supply chain mastery. The use of supply chain and logistics will make retailers

agile and cost-competitive in a more crowded retail sector. ASA and

Associates (2012) report titled A Brief Report on Retail Sector in India,

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 gives an overview of Indias retail sector, growth in retail sector. It also

describes government policy with respect to retail sector and major global

players in Indian retail.

Immense amount of efficient strategies are needed for reaching customers in

advertising. These strategies include personalization, integration with

multimedia and real-time interactions. It is also a fact that the largest revenue

arises within Internet advertising are generated through display-based and

search-based advertising. The users search engine queries determines which

advertisement are to be displayed. Revenue on the basis of search-based

advertising accounted for about $8.1 billion in 2011, 51% of the total

advertising Internet advertising revenue. Google followed by Yahoo and Bing

are the leaders in search based advertising market (Goldberg & Gorn).

Malte Brettel, and Andrea Spilker-Attig, in their work on advertising

effectiveness studied a cross-cultural comparison of the effectiveness of

internet advertising in the USA and France by analyzing a real data sample

with more than 1.2 million transactions using partial least squares and

structural equation modelling. It was found that on-demand channels have a

stronger effect on short- term success than push-channels and that this effect

is strongly moderated by the culture. It is recommended that spending and

efforts in the various advertising channels be adjusted to reflect the product

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 offered and the customers to whom it is offered, as customers in both

countries should be targeted by advertising in different ways.

Peter J. Danaher and Guy W. Mullarkey have published their research article

entitled Factors Affecting Advertising Recall : A Study of Students. In this

research he examine factors that might impact on web advertising recall and

recognition. These factors include the viewing mode, duration of page

viewing, and web page context factors, including text and page background

complexity and the style of the banner advertisement. It was found that the

longer a person is exposed to a web page containing a banner advertisement,

the more likely they are to remember that banner advertisement. We also find

that recognition scores are much higher than both unaided and aided recall

scores.
Novak and Hoffman (1996) empirical evidence suggests that consumers

respond to much of the advertising on the Internet in the same ways as they

respond to advertising in traditional media, at least with respect to

traditional measures of advertising effectiveness. Internet and other

interactive media like television have been more powerful, responsive, and

customizable than traditional media (Port, 1999).

Drze and Hussherr (1999) found response to the advertising on the internet

to be similar to response to advertising in other media, except that

advertising on the internet appeared to be easier to ignore. By Caroline

Cartellieri et.al. The Internet has as big impact on advertising as radio and
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 television, it is just another emerging niche medium with some peculiar

creative capabilities and constraints.

Similarly, Lynch and Ariely (2000) found that consumers are less price

sensitive when providers on the internet offer different rather than identical

products, a finding that directly parallels findings in more traditional retail

settings.
Dreze (1998) considered internet advertising as a viable alternative to

traditional media, reach and frequency are used as the standard measures for

advertisement effectiveness.
Consumers have direct control over web based advertisements on what ads,

when, where, and how long they would like to see them (Gallagher et. al.,

2001). Strangelove (1994) documented several ad formats, including

electronic mailing lists, usenet newsgroups, signature files, free electronic

newsletters, software samples, electronic brochures, and storefronts on the

web. Bush and Harris (1998) continue to show that the number one barrier to

advertising continues to be no proof of ROI or other measure of

effectiveness.
Palanisamy and Wong (2003) found a positive relationship between online

consumer expectations and web- based banner ad effectiveness. Advertising

can be an effective branding vehicle that could provide marketers with

powerful communication tools the web can present information in

numerous ways including text, images, videos, and sound and therefore, is

a flexible medium. The marketplace is changing and it has been shifting

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 towards online shopping, and virtual market businesses. Due to the changes

in the environmental trend, the online business has to focus more on web-

based advertisement.
Qimei Chen and William D. Wells (1999) develop and present a reliable and

valid scale that measures attitude toward a website. They then develop and

present additional scales that provide more detailed information Laurent

Flores (2007), highlighted his findings in the light of internet advertising

consumer model to understand the value of different formats (such as

banners, banners with daughter window, shared real estates, and interstitials)

of sponsorship and broadband advertising.

According to Preston (1985), the perfect advertising effectiveness measure

should be related to the actual behavior. Most concrete measure of

interactivity is looking at users actual behavior of interactions, e.g.,

clicking, searching, book marking, etc.

Briggs and Stipp (2000), share learning accumulated on the effectiveness of

different types of ad formats. internet advertising is a commercial

communication intended to generate a response over time. A better

understanding of the function of Internet advertising will not only help

the development and use of various Internet advertising formats but also

assist the effective integration of both traditional and internet advertising in

marketing campaigns.
Rodgers and Thorson (2000) draw a similar distinction in their Internet

Advertising Model. A primary element of their model designed is to explain

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 the communication process consumers follow in relation to messages on the

internet, is that some of these processes are advertiser- controlled, while

others are consumer- controlled. According Pavlov and Stewart (2000),

the measurement of advertising effectiveness can be thought of in terms of

two distinct aspects one Process Control and another was Results. These

two sets can be thought of as different but also complementary in their focus.

Control process measures concern primarily media choice, information

search, and the attention. Results measures concern the outcomes of

consumers having been exposed to messages. Advertising effectiveness is

a large part of any marketing campaign; and the marketers need to know

if their advertisements have affected their target audience. If the

campaign can actually reached the targeted audience then the benefits would

be immense.
Anandam P. Kavoori and Kalyani Chadha (2001) studied the future of the

internet in the developing world by exploring the discourse of advertising.

On the basis of a visual analysis from records of New Delhi and newspapers

and magazines, the study concluded that a rethinking is required for online

advertising in developing word. It argues that the advertisement themes used

in online advertisement used a vision of the future of internet which defies

the issues of linguistic hegemony, technological innovations, a consumerist

culture, support of sexism and class. The study suggests that the future of

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internet technology in the developing world is intimately connected with the

issues of global capitalism and cultural hegemony.

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 Research Methodology
The research methodology followed here is primary in nature based on

customer response.
The present study is based on primary data and information collected from a

variety of sources. An attempt has been made in the present study to make a

systematic analysis of changes in the size and structure of Indian retail market

over last few years. This analysis is useful to understand the expected future

changes in the Indian retail market and the implications of recent policy

changes adopted by Government of India. Collecting and compiling data and

information from various available sources, relevant ratios and percentages

have been calculated and analysed.

The study is based on published sources of data collected from various

sources. This research is descriptive in nature analysing the previous year

trends and schemes that have been implemented in India.

This aim of the study is to measuring the effectiveness of advertisement.
Research Design:
Types of Research: Descriptive
Sources of Data: Primary data
Sample Design:
Population: Individuals those shops at departmental store.
Type of sampling: Convenience
Sampling unit: Individual Customer
Sampling element: Individuals
Data collection method: Survey using structured questionnaire administered in

person or by mail.

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 Findings

Data Analysis & Interpretation

1 How often do you visit this store?

More than once in a week 30

Once a week 20

Once a month 10

Only on offer days (Big days, Wednesday bazaar) 20

Very rarely 20

Chart Title
More than once in a week
Once a week
Once a month
Only on offer days (Big days, Wednesday bazaar)
Very rarely

20%
30%

20%
10%20%

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2 How do you come to know about new product arrival in
the store?

Through Display of the product 25

Through offers 25

Through announcements 20

By enquiring salesperson 20

You will search by your own 10

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 Chart Title
Through Display of the product
Through offers
Through announcements
By enquiring salesperson
You will search by your own

10%
25%
20%

20% 25%

3)
Do the way of product arrangement & display in
the store attract you?

Always 30

Mostly 20

Sometimes 20

Rarely 15

Never 15

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 Chart Title
Always Mostly Sometimes
Rarely Never

15%
30%
15%

20% 20%

Did customer often come to the store after seeing the

advertisement ?

Yes 70
No 30

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Chart Title
YES NO

30%

70%

5) After seeing the add customer go for that particular

thing.
Yes 85
No 15

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 Chart Title
YES No

15%

85%

The various recall advertising factors as well as socio-demographic variables

such as age, gender and income. These questions in the survey were weighted as a

four-point scale (strongly disagree, agree, disagree, and strongly agree) as well as a

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five-point scale (very important, important, moderately important, not so important,

and unimportant. The following Table No. 1 shows that the majority of the

participants who purchased a product or service were significantly influenced by

the advertisement. Applying data-driven and quantitative approach, the data was

collected from participants and tabulated as it is shown in the following table 1.

For preparing the demographic profile of the respondents, the questionnaire

was queried for the participants age, gender, income, marital status, education level

and occupation. The given table shows that the most active group are in the age

group of Up to 20 -30 years followed by 41 to 50 years. The survey indicates that

majority of the respondents are male category. Out of 431 respondents surveyed

percentage of Married respondents were 54.3% and Unmarried respondents were

45.7%. In terms of educations qualification of the online buyers it was found that

Up to Intermediate were 29% followed by Up to matric, Up to graduation and Post

graduate and other qualification. All in all Education Qualification frequency

distribution is averaging 25% as evident from the above table. Maximum

respondents were recorded from group whose income were Up to Rs 15000 pm

averaging 34.1% followed by 27.8% respondents whose salary was between 15000

to 25000 pm and 13.9% respondents were under 25000 to 35000 pm and lastly

7.7% respondents having income above 50000 pm. Out of 43 respondents surveyed

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students were the maximum with 46.2% followed by service class aggregating

31.3% and professionals, business and others scoring 10.9, 6.5 and 5.1 percent

respectively.

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 Table No. 1. Demographic Profile of the
Respondents

Category Count Percentage
upto 20 Years
4 9.
20 to30 Years 0 3
Ag 31to 40 years
15 36.
e 41 to 8 7
50 years

9
Male 9 23.

Female 34 80.
Ge 8 7
Unmarried

Married
19 45.
Ma 7 7
rital

Status Upto Matric

E Upto Intermediate
ducati 10 24.
on Upto Graduation
level 6 6
Post
Graduate and 12 29.
Upto Rs15000PM 5 0
14 34.
Rs.150000 to 7 1
Rs25000PM

Inc Rs.25000PM to 12 27.
Rs.35000 PM 0 8
ome
Students

19 46.
9 2
Bus
iness
Occ 2 6.
Service 8 5
upation Professi
onals

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Table No. 2. Recall of

Advertisement

Freque Perc Valid Cumulativ
ncy ent Percent e Percent
Y 8
V

Recall of Advertisement was an important question in our research and the

results were quite satisfactory as upper limit of Yes criteria outshined the No

criteria as evident from the above table out of 431 respondents 82.6%

respondents said Yes and only 17.4% said No to Recall of Online

Advertisement.

Table No. 3. Impact of advertisement in

purchase

Fre Pe Valid Cumula
quency rcent Percent tive Percent
To a great extent 1
To some extent 2 4
To a 02 1
46. 6.9
2 63.
considerable
extent
To a little extent 01
23. 3.4
87.2

Not at all 32
7.4
7.4 94.
10
V Total 23 4
5.3 10
5.31 0.0
31 0.0 00.0

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 Impact of advertisement in purchase showed that 46.9% respondents said To

some extent followed by 23.4% respondents answered To a considerable extent

and 16.9% said To a great extent and 7.4% answered To a little extent and finally

5.3% said Not at all to the question.

Table No. 4. Advertisement making more

recalling

Freq Pe Valid Cumula
uency rcent Percent tive Percent


Animated 1 4
advertisement 77 41. 1.1 41.

V Total 4 10 1
31 0.0 00.0

This was an important question for the research as it aims to bring out which

technique will be most important for online recalling for a product or service and

the result were as follows there was a close association between Animated

advertisement and Banner plain text followed by Floating Advertisement Pop up

Advertisement and Embedded video.

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Conclusion and Suggestions

It can be concluded that Advertising if implemented properly can be an

effective tool. The new technologies have paved the way to a new era of interactivity

and creativity. There are a variety of factors to be considered for Internet advertising

that one can use to drive a potential customer to the website. The factors like

consumers, products, technology and media are to be given utmost importance. The

motivating factors which affect decision making for purchase can be analysed

through the collected data. The study looked into the most effective factors which

played an important role customer addition. The important factors found were the

usefulness of the product as majority of the respondent recall the advertisement

because of its necessity and usefulness. Prices of the product displayed online also

influence a lot of customer to recall the advertisement. Analysis indicates that there

was a close association between a nimated advertisement and Banner plain text

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followed by Floating Advertisement Pop up Advertisement and Embedded video. It is

also significant to note that advertisement is considered important to majority of the

respondents and majority of the respondents are of the opinion that they recall the

product by seeing the advertising of the product. The study also found that there are

several factors that motivate consumers ability to recall advertisements. The study

showed sufficient evidence that the respondents agreed that embedded video

advertisement has high recollection ability. The study is concluded with the finding

that advertisers need to advertise their product or service on the basis of the needs

and wants of the consumers. Among the various modes of online advertisement viz.,

Banner advertisement, floating advertisement, pop-up advertisement, and music

advertisements are not as effective as embedded video advertisement.

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53 | P a g e
 Appendices

Hi! Hope you enjoyed the shopping. It would be really great if you can help me
(MBA Student of UPES, DEHRADUN) in understanding a few things that would
make shopping effective and entertaining. Please help me by filling out this
questionnaire and be a part of my Marketing Research project.

Name of the Store: Shoppers Stop Location:

Ahmedabad

1. How often do you visit this store?

More than once in a week 30

Once a week 20

Once a month 10

Only on offer days (Big days, Wednesday bazaar) 20

Very rarely 20

2. How do you come to know about new product arrival in the store?

Through Display of the product 25

Through offers / Advertisement 25

Through announcements 20

By enquiring salesperson 20

54 | P a g e
 You will search by your own 10

55 | P a g e
 3. Do the way of product arrangement & display in the store attract you?

Always 30

Mostly 20

Sometimes 20

Rarely 15

Never 15

4. Did customer often come to the store after seeing the advertisement ?

Yes 70

No 30

5. After seeing the ad customer go for that particular thing.

Yes 85

No 15

6. While shopping, how do you come to know about the offers for the day in
the store?

(Tick only one option which is most relevant)

Sign boards / drop downs

Promo areas (Melas, Celebrations)

Sales People

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 Pamphlets / Advertisement

Announcements in the store

7. If you have bought some products other than what you came to buy, which of the
following factors made you buy more? (Tick as many as applies)

Attractive display of the product.

dvertisement

Information provided by salesperson

When I see a good deal, I tend to buy more than that I intended to buy.

No specific reason, I just bought because I liked the Product

I did not buy anything out of list

8. Can you recall one product based on the advertisement which was prominently
promoted in the store?


Please specify__________

9. Generally I follow the advertisement to find a product.

Strongly Agree.

Agree

Neither agree nor disagree

Disagree

Strongly Disagree

10. On the whole how was your shopping experience with Shoppers Stop?

Highly satisfied

Satisfied

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 Neither satisfied nor dissatisfied

Dissatisfied

Highly dissatisfied

Any suggestions to improve the quality in the store_________________________.

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Demographics

1. Name: ______________________________________________

2. Gender: Male / Female

3. Age: 10-20 / 20-30 / 30-40 / 40-50 /50 & above

4. Education:

5. Occupation: Student/ Employee /Business /any other (please specify)

_________________

6. Income range: 4k-10k / 10k-20k / 20k-30k /30k-40k/40k & above

7. Contact no:

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