TYBAMMC
ADVERTISING & MARKETING RESEARCH ASSIGNMENT
NAME :- RUSHIKESH PRAMOD SAWANT
ROLL NO :- 32
TOPIC NAME :- The Impact of T.V. Advertisements on
Buying Behaviour of Indian Adults
1
TABLE OF CONTENTS
SR.NO Content Page No
1 Abstract 3
2 Introduction 4
3
2
1. ABSTRACT
Viewers watch television for entertainment and keep themselves abreast
of current happenings. During this period, advertisements are passively
consumed by them. Because of in-depth penetration of televisions, over
other digital and print media, in every nook and corner of the country,
advertisers find it more effective to use television to reach consumers. In
light of this the present study was undertaken to measure the impact of
TV advertisements on consumer buying behaviour. A questionnaire
containing 20 items was prepared to meet out the objective. Responses
were recorded on a 5 – point Likert scale. A sample of 840 respondents
was used. Parametric tests like t- test and ANOVA have been used for
data analysis. The findings revealed that adults strongly believe that the
TV advertisements have considerably influenced their buying process.
Data analysis reveals that rural respondents are found more influenced
by advertisements in their product purchase decisions in comparison to
the urbanites. An interesting finding has been that most of the
respondents are fond of watching TV advertisements, females being
dominant. Another finding of the study is that the adults irrespective of
their gender and area of residence strongly consider that TV
advertisements have impact on their mind and the exposure to TV
advertisements have not only enhanced their involvement in purchasing
but has resulted in increasing their frequency of purchase. Limitations
and recommendations for the future research have also been discussed.
Keywords:- T. V. Commercials, Buying Behaviour, Influence of T. V.
Advertisements.
3
2. Introduction to Advertising
The term advertising originates from Latin word ‘advert’ which means to
turn around. Advertising, thus, denotes the means employed to draw
attention to any object or purpose (Ramaswamy & Namakumari, 2004).
Advertising has been defined as, ‘any paid form of non-personal
presentation and promotion of ideas, goods or services by an identified
sponsor’ (American Marketing Association, 2000). Cheng (1996) has
stated that ‘any human communication intended to persuade or influence
buyers in their purchase decisions’. Advertising is the non-personal
communication of the information usually paid for and persuasive in
nature about products, services or ideas by identified sponsors through
the various media (Bovee & Arens, 1994). Through an advertisement,
the advertiser intends to spread his ideas about his products and
offerings among his customers and prospects. The message is
transmitted through a mass medium like television, radio, newspaper,
magazines, direct mail, or outdoor display. Popularisation of the products
is the basic aim of advertising (Ramaswami & Nama Kumari, 2004).
Advertising is at its best when it is a compelling invitation to inform and
persuade the consumers’ behaviour towards goods, services or ideas. It
is not coercion though sales are definitely key criteria for successful
advertising yet ultimately, it is about building or contributing to successful
brands (Kapoor, 2004). It involves the activities of informing, persuading,
reminding and reinforcing the target audience (Kotler, 2003). Thus, the
basic purpose of an advertising communication is to put customers in a
more receptive form of mind so that they are inclined to purchase a
product (Dubey & Patel, 2004). Advertising stimulates increase in
production, wider distribution, and greater availability of goods and
services and consequently generates more employment
4
(Dhanabhakyam & Geetha, 2006). A survey conducted by The Nielsen
Company on media, the advertising spending in India has soared by 32
percent in the first quarter 2010 which is highest amongst the 12 major
markets in the Asia Pacific region. The present research has been
conducted to explore the influence of TV commercials on the buying
behaviour of consumers in India. The expenditure on TV advertising has
increased substantially in comparison to print media.
Television Viewership in India
In India, television started functioning as a state owned medium in
1959, went commercial in 1976 and transformed into colour in 1982.
Over a longer period of time, the TV set has become a permanent fixture
in all upper and middle class households, and it is not uncommon even
in the poorer society of urban areas and rural households (Shah &
D’Souza, 2008). The physical coverage of television is 82. 5 percent of
the country’s total population. Television programmes reach t nearly 90
percent population of which 500 million Indians (nearly fifty percent of
population) watch television regularly as per statistics of Doordarshan
and other researchers (Saxena, 2005). The television is the source of
product information for 42 percent of Indians, which is highest among all
media devices. Public television channel like Doordarshan in India
reaches more than 90 percent of the country’s population covering all
geographical locations and demographic characteristics.
5
Consumer Behaviour and Television Advertising
Consumer behaviour refers to the behaviour that consumers display in
searching for, purchasing, using, evaluating and disposing of products
and services that would satisfy their needs (Schiffman & Kanuk, 1996).
Their buying behaviour is influenced by various economic factors like the
price of a product, family income, size of the family, disposable personal
income etc. and by various non-economic factors like age, education,
occupation, personality, life style, area of residence etc. Consumers
consist of children, teenagers, adults and aged people. Almost every
child and teenager in India is a regular viewer of television. They spend
most of their free time in front of television watching programmes/
channels of their choice. They also watch family programmes along with
other family members during peak time i.e. from 7 pm to 10 pm and
during weekends and on holidays ( Dubey & Patel, 2004).
3.literature review
6
Influence of TV Advertisements on Children
Children make a substantial market segment for consumption of
products for their personal needs and wants like chocolates, ice-creams,
clothes, toys, entertainers and stationary items and they also influence
the purchase of their parents. The average child watches television for 3.
6 hours a day, or about of 25 hours a week, of which just over 3 hours,
conservatively, are devoted to commercials ( Adler, 1977; Leonhard &
Kerwin, 1970; Rossiter, 1979; Massey, 2006). These young consumers
spend billions of dollars on their own (Geary, 1999). They also exert a
substantial influence on their parents’ decision making and spending
(Hawkins et.al., 2001). Advertisers target children because of their high
disposable income, their influence on parental purchases, their early
establishments of loyalty to certain brands, and a conventional wisdom
that they buy products on impulse (Chan & Mc Neal, 2004). John (1999)
viewed socialization of children through three stages, namely perception
stage (3- 7 years), analytical stage (7-11 years) and the reflective stage
(11-16 years). Kotwal et al. (2008) studied the impact of media on
lifestyle of adolescents in the age groups 12-18 years of ages and found
that television and satellite channels certainly affected the lifestyle of
individuals.
Influence of TV Advertisements on Teenagers
TV advertising is a fleeting medium; messages flash and vanish so it
requires more exposures. Moreover, in TV there is fragmentation of
viewership because of variety of channels/ programme options
(Ramaswami & Namakumari, 2004). Adolescent learn consumer skills
primarily from parents and secondarily from media contacts (Brand &
7
Greenberg, 1994). By watching television, teens may gain information
about products, brands, stores and shopping as well as information
about as to how products are used and fit with certain lifestyle (Moschis,
1978). As regards liking products such as cold drinks, cigarettes,
movies, sports shoes, pens, garments, shaving creams, soaps,
shampoos, deodorants, automobiles, mobile phones and computers is
very much direct influence of TV commercials. The female counterparts
show interest in products such as cosmetics, jewellery, soap, shampoos,
sanitary napkins, footwear, clothes, chocolates, food products, perfumes
and watches. It is found that girls viewed TV advertisements with interest
and found them entertaining and informative (Kotwal et. el., 2008).
Moreover, in double – income families, where both husband and wife are
earning, some purchase chores and decisions are handed over to
youngsters in the family (Dubey & Patel, 2004).
Influence of TV Advertisements on Adults
Television is viewed on for an average of more than 8 hours per day,
and public policy officials have viewed concern about the impact of such
heavy viewing (Morgan, 1984). Indian adults, spare most of their free
time in watching TV. They switch on TV and decide programme of their
interest. During this span TV advertisements are passively accepted by
them. They watch TV to relax. Women in India view television for longer
hours. They make up over two-third of the adult viewing audience on
weekday afternoons, the programme that traditionally include soap
operas. Prime time evening audiences are more evenly divided, but
women viewers still out numbered men. As a result, most
advertisements carefully purchase time for their commercials during
programmes watched by the particular ‘target’ audience they consider
8
most likely to buy (Kavitha, 2006). Advertisers often believe that the
most desirable market for their products are young married professionals
and managers who live in urban or sub-urban areas (Patti & Frazer,
1988).
9
4. Research Methodology
Objective The main objective of the research was to study the impact of
TV advertisements on the buying behaviour of consumers.
4.1 Sample and Sampling Technique
A stratified random sampling method was adopted. 1000 questionnaires
(500 each for rural and urban areas) were circulated in Haryana state. In
total responses of 840,425 were from rural area and 415 were from
urban area were found fit for the study.
4.2 Tools Used
The study is based on primary data collected through pre-tested
structured questionnaires. The questionnaire was developed with a view
to seek information on buying behaviour of consumers with respect to
impact of TV advertisements. The questionnaire was divided into two
parts, the first part that contained 25 items was associated with the
impact of TV advertisements on the buying behaviour dimensions and
the second part was related to the general information of the
respondents. All the responses on the variable related to this study were
obtained on 5-point likert scale (point 5 signifies strongly agree and point
1 signifies strongly disagree). According to Burns and Bush (1998), the
value of likert scale format lies in the fact that respondents are asked to
indicate how much they agree or disagree with statements regarding the
possible influence of television advertising on their buying behaviour.
The scale, therefore, captures the intensity of their feelings toward
television advertisements.
10
4.3 Statistical Techniques
The data was analysed using t-test and analysis of variance (ANOVA).
ANOVA was used for examining the differences in the mean values of
the dependent and independent variables. The data was analysed
through SPSS 20.0.
5. Hypotheses
Five hypotheses were framed which are as follows:
H1 : The influence of TV advertisements varies significantly on the basis
of gender of the respondents i. e. male and female.
H2 : The influence of TV advertisements varies significantly on the basis
of are of residence of the respondents i. e. rural and urban.
H3 : The influence of TV advertisements varies significantly on the basis
of age groups of the respondents i.e., d” 40, 41-50 and > 50.
H4 : The influence of TV advertisements varies significantly on the basis
of annual household income of the respondents i. e., below Rs. 1, 00,
000; Rs. 1, 00, 000-3, 00, 000 and above Rs. 3, 00, 000.
H5 : The influence of TV advertisements varies significantly on the basis
of educational standard of the respondents i. e. d”10, d”12, graduate and
post graduate.
11
6. Analysis and Interpretation
Profile of Respondents Distribution of the respondents on the basis of
demographic factors is given in table 1. Gender is an important factor
influencing consumers’ buying behaviour. In present study 420 male and
420 female adult respondents constitute the sample. This gives equal
representation to both the gender group (Table 1). Residential
background of adults is assumed to have significant bearing on their
buying behaviour. Therefore, 425 rural representatives have been
selected which constituted 50.6% of the total sample, whereas, 415
urban adults have been given representation in the survey which is 49.
4% of the total adult sample (Table 1). The sample has been divided into
three age groups (Table 1). Adults falling in the age group of d” 40 years
were 37.4% of the sample and the category from 41 – 50 years have
represented 45. 4%. Adults of above 50 years of age were given 17.3%
of total adult sample. The sample was also drawn on the basis of
household income. 30% respondents were in the income group d” 1, 00,
12
00; 39. 9% respondents were in the income group 1, 00, 000 – 3, 00, 00;
and rest of the respondents (30. 1%) were in the income group e” 3, 00,
000 (Table 1). The sample has been divided into four academic groups.
Most of the respondents were graduate that comprised 40. 4%) of the
total sample (Table 1).
The influence of TV advertisements on the basis of gender of the
respondents
Results based on t – test and mean scores of the dependent variable
buying behaviour are shown in Table 2. The statistical value of t – test is
– 2.54 which is significant at 0.05 level of significance. It is also evident
from the variation in mean scores of the gender group. However, female
respondents (mean score 3.13) feels more influenced by TV
advertisements than the male respondents (mean score 2.94) (Table 2).
Thus the hypothesis H1 that the influence of TV advertisements varies
significantly on the basis of gender of the respondents i.e. male and
female is accepted.
13
Influence of TV Advertisements on the Basis of Area of
Residence of the Respondents
The perusal of results reveals that the t – statistical value for area of
residence is 2.09, which is significant at 0.05 level of significance (Table
4.2). It conveys that adults of rural and urban areas have varying views
towards TV advertisements. Rural adults (mean score 3.11) seem to be
more in favour of TV advertisements in comparison to their urban (mean
score 2.95) counterparts. Therefore the hypothesis H2 that the influence
of TV advertisements varies significantly on the basis of are of residence
of the respondents i. e. rural and urban is accepted.
Influence of TV Advertisements on the Basis of Age of the
Respondents
With the objective to test the hypotheses H3 , H4 and H5 , analysis of
variance (ANOVA) has been performed. Table 4.4 summarises the
14
results of ANOVA. The statistical value of F – ratio with regard to age
effect is 0.72 that do not signify at 0. 05 level (p > 0.05). Hence, the
hypothesis H3 is rejected. It is also evident from the mean values of
different age groups which show slight variation, however, the
decreasing order of mean score (Table 3) suggests that inclination
towards TV advertisement decreases with the increase in age of the
respondents. The value of F – ratio with respect to annual household
income is 0.76 which is not significant at 0.05 level (p > 0.05) (Table 3).
Thus the hypothesis H4 i.e. the influence of TV advertisements varies
significantly on the basis of annual household income of the respondents
i.e., below Rs. 1,00,000; Rs. 1,00,000-3,00,000 and above Rs. 3,00,000,
is rejected. Thus there are no variations in the views of consumers as far
as their income is concerned. It is also exhibited from the decrease in
mean scores with minor variations. The result of ANOVA regarding
education level effect reveals the value of F is 3.06 which is significant at
0.05 level. It connotes that there are divergent opinions among
respondents across the four education groups on the issue. The extent
and direction can be well observed from the mean scores where it is
noticeable that the adults in the education group 10 to 12 have highest
impact of TV advertisement, whereas, the post graduate adults are
minimally influenced by TV advertisements (Table 3).
15
7.Conclusion
In this study an attempt has been made to understand the impact of TV
advertisements on the buying behaviour of adult consumers on the basis
of certain demographic factors. The efforts have also been made to
provide workable suggestions to the advertisers and the marketers in
this regard. The study reveals that adults strongly believe that the TV
advertisements have considerably influenced their buying process.
However, they do not favour the idea of buying products just on the
basis of TV advertised products. The research connotes that rural
respondents are found more influenced by the advertisements in their
product purchase decisions in comparison to the urbanites. An
interesting finding has been that most of the respondents are fond of
watching TV advertisements, females being dominant. The liking for the
TV advertisements in on the lower side among respondents of higher
education level. Another finding of the study is that the adults
irrespective of their gender and area of residence strongly consider that
TV advertisements have impact on their mind and the exposure to TV
advertisements have not only enhanced their involvement in purchasing
but has resulted in increasing their frequency of purchase.
16
8.Limitations and Recommendations
Research studies which involve sampling techniques have inherent
weaknesses as such studies do not give direct representation to the
population rather their findings are dependent on indirect representation
which may or may not represent the population truly. This study is also
not free from limitations. The first limitation is that the present study is
confined to measure the impact of TV advertisements on adults ignoring
the fact that these days’ children play significant role in purchasing
decisions. The second limitation may be the sample size. The sample
size is 840, which is small. Thus the findings of this study may not be
generalized. Third limitation of the study is that the data collected in the
present study may not be free from the errors particularly with respect to
respondents’ poor knowledge of the subject mainly in case of rural and
illiterate consumers. Fourth limitation of this study is that there may be
certain biases on social and personal grounds. Also the buying
behaviour of consumers based on TV advertisements has only been
considered ignoring other medias of advertisements. Despite of the
aforesaid limitations, the study throws a spotlight to the untapped yet
highly significant area of impact of TV commercials on the buying
behaviour of consumers. This will work as foundation for marketers and
advertisers in channelizing their thinking process and providing new
dimensions to their marketing efforts. This study will work as a basis and
pave ways for future research.
17
References
• Bovee, C. L. & Arens, W. F. (1994). Contemporary Advertising, 5th
Edition, Irwin Professional Publishing.
• Brand, J. E., & Greenberg, B. S., (1994). Commercials in the
classroom: the impact of channel one advertising. Journal of Advertising
Research, 34, No. 1
• Chan, K. & McNeal, J. U. (2004). Chinese children’s attitudes towards
television advertising: truthfulness and liking. International Journal of
Advertising, 23, No. 3, pp. 337-359.
• Cheng, H. (1996). Advertising in China: A Socialist Experiment. In
Frith, K. (Edition) Advertising Asia, Ames: Lowa State University Press.
• Dhanabhakyam, M. & Geetha, S. (2006). Ethics in advertisements and
its impact. Indian Journal of Marketing, 36, No. 8, pp. 22-39.
• Dubey, J. & Patel, R. P. (2004). Ads that work with youth. Indian
Management, 43, No. 10, pp. 68-74.
• Geary, J. (1999). Childhood’s end? Time, August 2, pp. 50-52. • John,
D. R. (1999). Consumer socialization of children: a retrospective look at
25 years of research. Journal of Advertising Research, 26, No. 3, pp.
183-237.
• Kapoor, D. C. (2004). Marketing and Sales Management, 1st Ed. New
Delhi: S. Chand & Company Ltd.
• Kavitha, G. (2006). A study on the effectiveness of the advertising
techniques used in the personal care segment of women consumers.
Indian Journal of Marketing, 36, No. 8, pp. 12-16.
18
• Kotwal, N., Gupta, N. & Devi, A. (2008). Impact of T.V. advertisements
on buying pattern of adolescent girls. Journal of Social Science, 16, No.
1, pp. 51-55.
• Kotler, P. (2003). Marketing Management. 11th Ed. Pearson. New
Delhi.
• Leonhardt, D. & Kathleen, K. (June, 1997). Hey kid, buy this! Business
Week, pp. 62-67.
• Massey, J. (2005). The impact of advertising on teenagers. Retrieved
January 19, 2006 from GJUS & T University, Hisar. http://www. tip. sas.
upenn. edu/curriculum/units/2006/02/06.02.05pdf
• Morgan, M. (1984). Heavy television viewing & perceived quality of life.
Journalism Quaterly, 61, No. 3, pp. 499-504.
• Moschis, George, P. (1978). Teenagers’ responses to retailing stimuli.
Journal of Retailing, 54, No. 4, pp. 80-93. • Patti, C. H. & Frazer, C. H.
(1988). Advertising: A Decision Making Approach, Chicago: Dryden.
• Ramaswamy, V. S. & Namakumari, S. (2004). Marketing Management,
3rd Ed. MacMillan, India Ltd.
• Rossiter, J. R. (1979). Does TV advertising affect children? Journal of
Advertising Research, 19, No. 1, pp. 49-53.
• Saxena, R. (2005). Marketing Management. 2nd Edition, New Delhi:
Tata Mc Graw Hill • Schiffman, L. G. & Kanuk, L. L. (1996). Consumer
Behaviour. 5th Edition, New Delhi: Prentice Hall.
• Shah, K. & D’Souza, A. (2008). Advertising and Promotion: An IMC
Perspective. New Delhi. Tata Mc Graw Hill Companies.
19
Questionnaire
1. Name _________
2. Gender
1) Male 2) Female 3) Prefer not to Say
3. Age
1) Less than or equal to 15 2) 16 to 30
3) 31 to 45 4) 45 to 60 5) 60 to above
4. Income (Annually)
1) 3 less than 3LPA 2) 3.1 to 5LPA 3) 5.1 to 10LPA
4) 10.1 to 20LPA 5) 20.1 to above
5. Education
1) Less than Class 10 2) Class 10 to 12 3) Graduation
4) Post Graduation 5) Diploma
6. Designation
1) Student 2) Employee 3) Businessman
4) House wife 5) Other
7. When do you usually buy Apparel?
1) Regular 2) Occasional 3)Offer 4)Others
20
8. How often do you go for shopping?
1) Once a week 2) Once a month
3) Once every in 3 months 4) Once a Year
9. Where do you like to go for Shopping?
1) Mall 2) Traditional Shop 3) Outlet 4) Online Shopping
10. Why do you purchase from here?
1) Convenient Place 2) Dealer Acquaintance 3) Discounts
11. What is Your expected price range of your apparel?
1) 0 to 1000 2) 1001 to 2000 3) 2001 to 3000 4) 3001 to above
12. How many Apparel do you buy while shopping at one time?
1) 1 2) 2 3) 3 4) 4 or more
13. Is Price Factors affecting your purchase decision?
1) Strongly agree 2) Agree 3) Neither Disagree or agree
4) Disagree 5) Strongly disagree
14. Is Quality Factors affecting your purchase decision?
1) Strongly agree 2) Agree 3) Neither Disagree or agree
4) Disagree 5) Strongly disagree
21
15. Is Design Factors affecting your purchase decision?
1) Strongly agree 2) Agree 3) Neither Disagree or agree
4) Disagree 5) Strongly disagree
16. Is Material Factors affecting your purchase decision?
1) Strongly agree 2) Agree 3) Neither Disagree or agree
4) Disagree 5) Strongly disagree
17. Is Comfort Factors affecting your purchase decision?
1) Strongly agree 2) Agree 3) Neither Disagree or agree
4) Disagree 5) Strongly disagree
18. Is Location Factors affecting your purchase decision?
1) Strongly agree 2) Agree 3) Neither Disagree or agree
4) Disagree 5) Strongly disagree
19. Is Brand name of the Company Factors affecting your purchase
decision?
1) Strongly agree 2) Agree 3) Neither Disagree or agree
4) Disagree 5) Strongly disagree
22
20. Would presentation of the TV advertisement of Product help
pressurized you in your purchase decision?
1) Strongly agree 2) Agree 3) Neither Disagree or agree
4) Disagree 5) Strongly disagree
21.
23