CHAPTER- 1 PROLOGUE

1.1

INTRODUCTION

Advertisements is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service one element in corporate strategies to create, organize and where possible control markets, especially for mass produced consumer goods. One element in corporate strategies to create, organize and where possible control markets, especially for mass produced consumer goods. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinvention of the "brand image. Every major medium is used to deliver these messages, including television, radio, cinema, magazines, newspapers, video games, the Internet, carrier bags and billboards. Advertisements played a vital role in buying decision. Through advertisement, Consumers are come to know about the product, its uses, benefits, availability, and brand name of products. At the time of buying a product, they recall the advertisement and then they take their buying decision in many cases.

1.2

CONCEPTUAL FRAMEWORK
2

Consumer behavior is a complex issue and significant in marketing. In general it is associated with psychological status of the consumer in taking or rejecting buying decision. The most important part of consumer behavior is the action that taken by the buyer to accept or reject of an offered product or product available in the market. Buying decision is a critical stage fro m the point of view of both the customer and marketer specifically in case of durable product. while taking a buying decision by a consumer he/she consider many aspects related to a product ,price, warranty etc.refrigerator is a common durable essential house product required by each and every family. It is impossible to think about any family without a refrigerator specifically in the urban counterpart. In selecting house hold products the house maker invariably influences on the buying decision and buying behavior of the head of the family is also affected in many cases. Of course advertisements always work in influencing the customer in taking their buying decision. It is very difficult to measure properly the impact of advertisement in taking buying decision by consumer bit some indication may be find out to know the implication of advertisement through some questions. In our study area advertisement and buying decision of house maker in relating to refrigerator has also been giving us an opportunity to consider the term consumer behavior and decision making process in general. Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and

economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and
3

behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Research suggests that customers go through a five-stage decision-making process in any purchase.

This is summarized in the diagram below:

*Adopted from Consumer Behavior: Buying, Having, and Being, 6th Edition by Michael R. Solomon. This model is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice!) The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a student buying a favourite hamburger would recognize the need (hunger) and go right to the purchase decision, skipping information search and evaluation. However,
6

the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. The buying process starts with need recognition. At this stage, the buyer recognizes a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). An aroused customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer can obtain information from several sources: Personal sources: family, friends, neighbors etc.

Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays. Public sources: newspapers, radio, television, consumer organizations; specialist magazines Experiential sources: handling, examining, using the product The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers value and respect personal sources more than commercial sources (the influence of word of mouth). The challenge for the marketing team is to identify which information sources are most influential in their target markets.
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In the evaluation stage, the customer must choose between the alternative brands, products and services. How does the customer use the information obtained? An important determinant of the extent of evaluation is whether the customer feels involved in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice. Where a purchase is highly involving, the customer is likely to carry out extensive evaluation. High-involvement purchases include those involving high expenditure or personal risk for example buying a house, a car or making investments. Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes. Why should a marketer need to understand the customer evaluation process? The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations. In high-involvement decisions, the marketer needs to provide a good deal of information about the positive consequences of buying. The sales force may need to stress the important attributes of the product, the advantages compared with the competition; and maybe even encourage trial or sampling of the product in the hope of securing the sale.
8

Post-purchase evaluation - Cognitive Dissonance The final stage is the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as cognitive dissonance. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision.

CHAPTER- 2 ABOUT THE STUDY

2.1

OBJECTIVES OF THE STUDY

To understand the impact of advertisement in taking buying decision by consumers of the study area.

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 To study the comparative advantages of advertisements for the respondents, with reference to refrigerator. To study the consumer perception about the advertisement of different brands of refrigerator.
2.2 RESEARCH QUESTIONS

Advertisement has the ability to convert ones decision in buying a particular product. How much it can influence to the homemaker in taking their buying decision relating to the refrigerator or has advertisement any impact on the study area is pertinent to consider here. 2.3 SCOPE OF THE STUDY The scopes of this particular study are:1. The study highlights the impact of advertisement in making purchase decision. 2. The study is conducted amongst the home maker in relating to Refrigerator in

Dibrugarh Town.
3. The study focuses the comparative advantages of advertisements among the home

makers.
4. The study highlights consumer perception towards the advertisement of different

brands of refrigerator.
5. The study focuses to know the significance of advertisements in todays life.

2.4

RESEARCH METHODOLOGY
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This study has been carried out to know the impact of advertisement in taking buying decision by consumer amongst the home maker in relating to refrigerator in Dibrugarh Town.

Sampling:
1. Method: - The type of research is explorative. The respondents are selected by

adopting a method of random sampling.

2. Size: - The sample size is 100 respondents. 3. Area: - The questionnaires have been distributed among consumers in various area of

Dibrugarh town.

Data collection:
Collection of data is done through primary as well as secondary sources. Primary Data is collected through the structured questionnaires and interviews and Secondary Data are collected through internet and other published information.

Period of study:
The study is conducted over a period of two months. (January and February)

Analysis Techniques:
Analyses have been made on the basis of the responses of the respondents and the results of the interviews.
12

To arrive at the objectives statistical tools is used for analyzing the data and information that are percentage, average, Charts, tables, bar diagram, etc.

2.5

LIMITATIONS OF THE STUDY

1. It was difficult to collect proper data and information because the Home makers

were not giving maximum time to respond. 2. The time period is too small to carry out such a topic and to draw a meaningful conclusion. 3. The study is for limited period of two months and market scenario may change after time so there may be difference in market scenario in future. 4. The information collected and analyzed are limited which may not fully represents the image of the study.

CHAPTER 3
13

ANALYSES OF DATA

ANALYSES OF DATA
As the study is of empirical in nature, the data has been collected from the respondents through structured questionnaires and interviews and these were tabulated and accordingly the analyses were done:
1. How many respondents have Refrigerator

OPTIONS YES NO

IN % 70 30

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Source:Field survey

(Fig.1) From the above figure,it has been observed that 70% of respondents have refrigerator and 30% of respondents donot have refrigerator.

2. Indication of Brand Name

OPTIONS Whirlpool LG Videocon Samsung Other IN % 35 32 20 23 10

Source:Field survey

15

( Fig.2) Above figure shows the indication of brand name given by respondents that 35% have whirlpool refrigerator, 32% have LG, 20% have Videocon, 23% have Samsung and 10% of respondents have other refrigerator brand.

3. Media Of Advertisement

OPTIONS Billboards TV advertisement Newspaper Others Source:Field survey

IN % 10 70 15 5

16

( Fig.3) From the above graph, it has been observed that advertisement is more influenced by TV i.e. 70%, newspaper is 15%, billboards is 10% and other media of advertisement is 5%.

4. Frequently watching of advertisement of refrigerator in a day

OPTIONS Once Twice Thrice Many Times

IN % 15 22 28 35

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From the above graph, it has been observed that 15% of respondents watch advertisement once in a day, 22% respondents watch twice in day, 28% respondents watch thrice times in a day and 35% of respondents watch advertisement many times in a day.

5. Satisfaction with the service of Refrigerator purchased

OPTIONS YES NO
Source:Field survey

IN % 85 15

18

( Fig.5) From the above chart , it is found that 85% of respondents are satisfied with the service of refrigerator purchased by them whereas, 15% refrigerator purchased. are not satisfied with the service of

6. Deviation in between the facilities being advertised and in using the product

OPTIONS YES NO
Source:Field survey

IN % 10 90

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( Fig.6) From the above figure, it has been observed that 90% of respondents said No about the facilities being advertised and in using the product and 10 % of respondents said Yes.

7. Which companys advertisement is more attractive

OPTIONS LG Whirlpool Videocon Samsung Others Source:Field survey

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IN % 32 25 18 20 05

( Fig.7) From the above graph, it is found that 32% of respondents said LGs advertisement is more attractive , 25% said Whirpool, 18% said Videocon, 20% said samsung and 5% said others advertisement is more attractive.

8. Which companys advertisement seen in recent days

OPTIONS LG Whirlpool Videocon Samsung Others

Source:Field survey

IN % 25 30 15 20 10

21

( Fig.8) Above figure shows that, which companys advertisement seen in recent days, 25% of respondents said LG, 30% said Whirlpool, 15% said Videocon, 20% said Samsung and 10% said about other companys advertisement.

9. Which companys advertisement is most memorable

OPTIONS
LG Whirlpool Videocon Samsung Others Source:Field survey

IN %
28 40 12 15 5

22

( Fig.9) From the above graph, it has been observed that 40% of respondents said Whirlpools advertisement is most memorable whereas, LGs is 28%, Videocons is 12%, Samsungs is 15% and other companys advertisement is only 5%. 10. Which companys advertisement respondents can rely upon and take purchase decision

OPTIONS
LG Whirlpool Videocon Samsung Others Source:Field survey

IN %
28 40 12 15 5

23

( Fig.10) From the above figure, it is found that 40% respondents can rely upon the Whirlpools advertisement,28% can rely upon LG, 12% can rely upon Videocon, 15% can rely upon Samsung and 5% can rely upon other refrigerators advertisement.

11. Reasons for selecting a brand

OPTIONS
Service Availability of parts Design All the above Source:Field survey

IN %
20 20 30 30

24

( Fig.11) Above graph shows the reasons for selecting a brand, 20% of respondents select brand for service, 20% respondents for availability of parts, 30% respondents for design and 30% respondents are for all the above.

12. Advertisement is helpful to become familiar with the brand

OPTIONS
YES NO Source:Field survey

IN %
90 10

25

( Fig.12)

From the above figure , it has been observed that 90% of respondents said the advertisement is helpful to become familiar with the brand whereas, 10% of respondents said No.

13.

Advertisement is substantially help in increasing the number of customers

OPTIONS YES NO No Idea

Source:Field survey
26

IN % 80 15 5

( Fig.13)

From the above figure, it is found that 80% of respondents said advertisement is substantially help in increasing the number the customers, 15% said No and 5% said No idea.

14. Which companys service and advertisement is differ

OPTIONS LG Whirlpool Videocon Samsung Others

Source:Field survey
27

IN % 15 10 30 20 25

( Fig.14) From the above figure, it has been observed that 15% of respondents said about LG, 10% said about Whirlpool, 30% said about Videocon, 21% said about Samsung and 25% of respondents said about Other brands.

15. Purchase decision relying on which companys advertisement

OPTIONS LG Whirlpool Videocon Samsung Others

Source:Field survey

IN % 28 25 22 20 5

28

( Fig.15) Above graph shows the purchase decision of respondents relying on different companys advertisement, 28% of respondents rely on LGs advertisement, 25% of advertisement rely on whirlpool, 22% of respondents rely on Videocon, 20% rely on Samsung and 5% of respondents rely on Other brands advertisement.

CHAPTER- 4
29

INTERPRETATION OF DATA

INTERPRETATION OF DATA

1. From the survey, it has been observed that 70% of respondents have refrigerator and

30% of respondents donot have refrigerator.

2. The study shows the indication of brand name given by respondents that 35% have

whirlpool refrigerator, 32% have LG, 20% have Videocon, 23% have Samsung and 10% of respondents have other refrigerator brand.
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3. From the study, it has been observed that TV advertisement is more influencial on

respondence i.e. 70%, newspaper is 15%, billboards is 10% and other media of advertisement is 5%.

4. From the survey, it has been observed that 15% of respondents watch advertisement

once in a day, 22% respondents watch twice in day, 28% respondents watch thrice times in a day and 35% of respondents watch advertisement many times in a day.
5. From the survey , it has been found that 85% of respondents are satisfied with the

service of refrigerator purchased by them whereas, 15% are not satisfied with the service of refrigerator purchased.

6. From the study, it has been observed that 90% of respondents said No about the

facilities being advertised and in using the product and 10 % of respondents said Yes.

7. From the survey, it has been found that 32% of respondents said LGs advertisement

is more attractive , 25% said Whirpool, 18% said Videocon, 20% said samsung and 5% said others advertisement is more attractive.

31

8. The study shows that, which companys advertisement seen in recent days, 25% of

respondents said LG, 30% said Whirlpool, 15% said Videocon, 20% said Samsung and 10% said about other companys advertisement.

9. From the survey, it has been observed that 40% of respondents said Whirlpools

advertisement is most memorable whereas, LGs is 28%, Videocons is 12%, Samsungs is 15% and other companys advertisement is only 5%.

10. From the study, it has been found that 40% respondents can rely upon the

Whirlpools advertisement,28% can rely upon LG, 12% can rely upon Videocon, 15% can rely upon Samsung and 5% can rely upon other refrigerators advertisement.

11. The study shows the reasons for selecting a brand, 20% of respondents select brand

for service, 20% respondents for availability of parts, 30% respondents for design and 30% respondents are for all the above.

12. From the survey, it has been observed that 90% of respondents said the

advertisement is helpful to become familiar with the brand whereas, 10% of respondents said No.
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13. From the survey, it has been found that 80% of respondents said advertisement is

substantially help in increasing the number the customers, 15% said No and 5% said No idea.

14. From the study, it has been observed that 15% of respondents said about LG, 10%

said about Whirlpool, 30% said about Videocon, 21% said about Samsung and 25% of respondents said about Other brands.

15. The study shows the purchase decision of respondents relying on different

companys advertisement, 28% of respondents rely on LGs advertisement, 25% of advertisement rely on whirlpool, 22% of respondents rely on Videocon, 20% rely on Samsung and 5% of respondents rely on Other brands advertisement.

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CHAPTER- 5 EPILOGUE

5.1

OVERVIEW OF THE PROJECT

The study is carried out to identified the impact of advertisements in taking buying decision by consumer. Buying of product is not an easy task, the consumer should have proper knowledge and idea about the product. In taking buying decision advertisement can influence the buyer at different level with different results. More over advertisement can highlight the facility,benifit, quality of a brand infront of the prospects which ultimately help them to be a customer.

34

The present study is an attempt to understand the impact of advertisement on the home maker and run with five chapter.The chapter one deals with Introduction &Conceptual framework, Chapter two deals with Objectives, Research question, Scope, Research methodology and limitation of the study, Chapter three deals with Analysis of data and Chapter four deals with the Interpretation of data. From the study we get some indication on the impact of advertisent on the respondence of the study area and they can be listed on the following findings.

5.2

FINDINGS

1. From the study, it has been observed that 70% of respondents have refrigerator and

30% of respondents donot have refrigerator.

2. From the study, it has been found that most of the respondents are using Whirlpool

and LG refrigerator brand in comparision of other brands like Samsung and Videocon.

35

3. In this study, it is indicated that T.V advertisement is more influential than other

media of advertisements.

4. From the study, it is found that most of the respondents are satisfied with the service

of refrigerator purchased .

5. From the study, it has been observed that most of the respondents are satisfied with

the facilities being advertised and in using the product.

6. From the study, it is found that LGs and Whirlpools advertisement is more

attractive than the other brand.

7. From the study, it has been observed that more advertisements of LG and Whirlpool

have seen in recent days.

8. From the study, it has been observed that Whirlpools and LGs advertisement is

most memorable than other brand.

9. From the study, it is found that most of the respondents can rely upon the

Whirlpools and LGs advertisement.

10. From the study, it has been observed that some of the respondents select brand

according to the design, some respondents select for service, some respondents select for availability of parts and some respondents select for all these features .

11. From the study, it has been observed that advertisement is helpful to become familiar

with the brand and also advertisement is substantially help in increasing the number of customers.

36

12. From the study, it has been observed that Videocons and Other brands service and

advertisement is differ in comparision of LG, Whirlpool and Samsung.

13. From the study, it has been found that purchase decision of respondents relying on

different companys advertisement like some respondents rely on LGs advertisement, some respondents rely on whirlpool, some respondents rely on Videocon, some respondents rely on Samsung and some respondents rely on Other brands advertisement.

5.3

CONCLUSION
37

The results of this research study clearly indicate that there is an impact of advertisement in taking buying decision by consumer of Dibrugarh town regarding the refrigerator. Consumers buying decision depends upon the brand name, attractive overview of advertisements, facilities and uses of the refrigerator. The consumers select their brand according to the facilities, availability of parts, design and for good services. An advertisement can definitely helps to take the buying decision regarding any product because from advertisement they learn about the utility, its features and brand image. Advertisements are closely linked to the consumer behavior. So it affects the personality to the consumers, his concept of self, his attitudes beliefs and opinions, his life-cycle and lifestyle etc. An advertisement makes it possible for the manufacturer to introduce new ideas and new products. Had it not been for the advertising the consumers would not have accepted many products. Advertising expands markets, builds up volumes, and gives a market share and profitability and it is more influenced by TV. So, the consumers easily take buying decision by relying upon their choosing brand and the advertisements helps them to become more familiar with the brands of refrigerators. The consumers of Dibrugarh town prefer the Whirlpool and LG brands refrigerator in large volume. From the study, it is concluded that there is an impact of advertisements in taking buying decision by consumer amongst the home maker in relating to Refrigerator in Dibrugarh town.

38

ANNEXURE

Questions asked to the consumers of Dibrugarh town

Dear Sir,
39

I am a student of MBA (Marketing), 09-11 batch of NIS Academy in technical collaboration with Annamalai University. I get a topic to study about an impact of advertisements in taking buying decision by consumer of Dibrugarh town. On the basis of my topic. I prepared a few question for getting the information. So, please provide the correct information as per your experience & Convenience.

Thanking You

Alok kr. Roy MBA 2nd Year NIS Academy, Dibrugarh

QUESTIONNAIRE
Name: ___________________________ Age: ____________________
40

Sex: Male

Female

Income Status: Below Rs. 3000 Rs. 3000 to Rs 5000 Rs. 5000 to Rs. 10000 Rs. 10000 to Rs. 20000 Above Rs. 20000 1. Do you have refrigerator? Yes No a) If yes, please indicate the brand from the given below: i) Whirlpool ii) LG iii) Videocon iv) Samsung v) Others 2. Do you believe advertisement can influence buyer in buying decision? Yes No 3. Which media of advertisement have influenced you to purchase this product? a) Billboards b) TV advertisement c) Newspaper d) Others 4. How many times in a day have you seen the advertisement of refrigerator? a) Once b) Twice c) Thrice d) Many times 5. Are you satisfied with the service of refrigerator you purchased? Yes No 6. Do you experience with any deviation in between the facilities being advertised and in using? Yes No 7. Which companys advertisement is more attractive to you? a) LG b) Whirlpool c) Videocon d) Samsung e) Others 8. Which companys refrigerator advertisement you have seen in recent days? a) LG b) Whirlpool c) Videocon d) Samsung e) Others 9. Which companys advertisement is most memorable? a) LG b) Whirlpool c) Videocon d) Samsung e) Others

41

10. On which companys advertisement you can rely upon and take purchase decision? a) LG b) Whirlpool c) Videocon d) Samsung e) Others 11. What reasons influence you in selecting a brand? a) Service b) Availability of parts c) Design

d) All the above

12. Do you think that advertisement is helpful in making you familiar with a brand of Refrigerator? Yes No
13. Do you believe that advertisement can substantially help in increasing number

of Customers? Yes No

No idea

14. Which companys service and advertisement differ? a) LG b) Whirlpool c) Videocon d) Samsung e) Others 15. You can take purchase decision relying on which companys advertisement? a) LG b) Whirlpool c) Videocon d) Samsung e) Others

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