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Impact of Advertising on Consumer Buying Behavior

In: Business and Management

Submitted By Hasnain110
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Impact of advertising on consumer buying behavior
By
S #. | Name | Reg #. | 1 | Muhammad Hasnain Abbas (Leader) | 23618 | 2 | Haris Memon | 19965 | 3 | Kamran Khan | 20911 | 4 | Zahida Lakhan | 22868 | 5 | Kabir Thakur | 24017 | 6 | Mushtaque Shayan | 24026 |

A Project Report submitted in partial fulfillment of the requirements for the Course of Writing Research Reports to
Miss Sania Usmani at the Iqra University, Main Campus

Karachi, Pakistan.
Dec 26, 2014

ACKNOWLEDGMENT

This report is dedicated to our family, companions, and educators for their backing and support. Initially, we might want to thank Miss Sania Usmani for being a fabulous research supervisory. It implies a ton to us that she ventures up when we required her most and tackled the obligation of managing us in the privilege bearing. Moreover, she pushed us to consider unheard of options and tested us to look past what is directly before us. Without her we would not have possessed the capacity to finish this exploration. Thus and a lot of people more, we will be perpetually appreciative.

ABSTRACT
Advertising has made a great deal of chances for advertisers to associate with their customers and additionally advance their items successfully however not all their customers consider it to be of much vitality. People of Pakistan don’t get influenced by advertisement even if the product is advertised on TV by their favorite celebrity or actor. Advertisements are the source of information for them about a new product but pursuing a new product is may be influenced by other sources but not advertisements. The findings of this research demonstrate that there exists a feeble or no relationship between advertisements with the consumer behavior. The research also shows that customers of social group of students do not spend time to read promotional messages or Emails. People don’t have time to entertain direct marketers and gets irritated when listen to their calls. The data was collected via questionnaire consists of closed ended questions. Data was collected from the no.1 private sector business University of Sindh i.e. Iqra University. The sample was consisted of 90 respondents. The result of data analysis is supported by SPSS software. The T-test was used to test the hypotheses. Key Words: Online advertisement, TV advertisement, Direct marketing, Consumer buying behavior.

CHAPTER1: INTRODUCTION 1.1 Overview
The goal of conducting this research is to determine the relationship between different forms of advertisement to the consumer buying behavior.
Advertisement is defined as: “Advertising is a type of marketing communication used to promote a product, service, or event or publicizing a job vacancy” (Oxford English Dictionary, 2005)
Consumer is a person who purchases goods and services for personal use. The purpose of marketing is to get together and fulfill target customer’s requirements. Television advertising is very effective tool to communicate word to their target spectators as it combines audio and visual communication. Which make people interested in their product. Television advertisement is one of the most reliable way of advertisement. TV advertisement can be used to seek out any type of customers or consumers. (Geeta Sonkusare, 2013)
The coverage and variation of online advertisement has grown dramatically. Organizations are using more on online ad than prior. Understanding online advertisement is very necessary because it has different effects on consumers than TV or radio advertisements. Online advertising is an emerging form of advertisement which will become the future. (Bakshi & Gupta, 2013)
Examples of direct marketing are Email, SMS and One-to-One marketing. In which business sells products and services directly to the public. Direct marketing uproots the center man from the advertising process, as an organization's message is given specifically to a potential client. This sort of advertising is regularly utilized by organizations with small promoting plans, since they can't bear to pay for promotions on TV and frequently don't have the brand distinguishment of bigger org.
Advertising tells the customers about brands and products available in the market. Advertising is for everybody including kids, young and old. Advertising educates people. Advertisement on social issues like smoking, child labor or family planning etc. brings awareness in people’s mind. Advertising plays a vital role in society. This research will study the relationship between advertisement and its effect on consumer buying behavior.
Dependent Variable: * Consumer buying behavior
The methodology by which people look for, select, buy, utilize, and discard products and services, in fulfillment of their needs.
Independent Variable: * TV Advertisement
Television advertising is very effective tool to communicate word to their target spectators as it combines audio and visual communication. Which make people interested in their product. Television advertisement is one of the most reliable ways of advertisement. TV advertisement can be used to seek out any type of customers or consumers. (Geeta Sonkusare, 2013) * Online Advertisement
Online advertising or also known as web advertising or Internet marketing, is a type of advertising and promoting which utilizes the internet to convey promotion messages to buyers. * Direct marketing (Emails and one to one marketing)
Offering products or services to the general public directly or specifically. E.g. via mail request or phone offering, unlike retailers.
Sub-variables:
TV Advertisement * Covert Advertising * Commercial breaks

Online Advertisement * Website marketing * Pop up ads

Direct Marketing * Email * SMS * One to One marketing 1.2 Problem Statement
To find out the influence or impact of advertisement like TV advertisement, online advertisement and direct marketing, its outcomes or effect on the buying behavior of consumers. 1.3 Hypothesis
H1: There is positive impact of TV advertisement on consumer buying behavior.
H2: There is positive impact of online advertisement on consumer buying behavior.
H3: There is positive impact of direct marketing on consumer buying behavior.

1.4 Outline of the study
This research is led to figure out whether consumer behavior is influenced by advertisement. To start with we have made a literature review to bring about a noticeable idea of our research. Also we have demonstrated the hypothesis on which we are studying. At that point we have told our research techniques that how we are getting along research and who are our respondents, so it will make the reader to sum up the issue effortlessly.

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CHAPTER 2: LITERATURE REVIEW
ZU Abideen (2011) studied that advertising is an indication of correspondence anticipated that will convince a gathering of individuals (viewers, perusers or group of onlookers parts) to purchase or make some move upon things, information, or organizations etc. This paper scrutinizes the relationship between autonomous variables which are ecological reaction and enthusiastic reaction with attitudinal and behavioral part of buyer purchasing conduct, by tapping the responses of 200 respondents using telecom organizations from Rawalpindi, Islamabad, and Lahore (urban territories of Pakistan). The genuine disclosures of the study demonstrate a general conventional relationship between the variables yet all around examination found that eager response of purchaser purchase behavior is the variable that results into strong association with the customer acquiring behavior. The truth of the matter is that people purchase those brands with which they are genuinely joined. This study reports new verifications in the field of purchaser acquiring behavior of buyers identifying with the area markets of these urban regions of Pakistan.
Commercial is most the successful instruments of facilitated advertising communication to emotionally motivate purchasers to buy the things. It moreover has robust connection with stimulation and the expansion of media has smeared the perceiving lines between the commercials and amusement. (Moore, 2004).
Adelaar et al. (2003) headed study on online Cds shopping behavior of client through emotional ads. Promoting is a non-individual and paid structure where considerations, thoughts, things or organizations, and information, are progressed through media (visual, verbal, and content) by a perceived supporter to impact or effect conduct.
The consequences of research study plainly demonstrate that there is a weak association between emotional advertisements with the consumer buying behavior. (ZU Abideen, 2011)
It is built from the research that purchasers buy items in the zones of 3 focused cities (Islamabad, Rawalpindi and Lahore) through emotional advertisement, instead of environmental advertisement. The environmental advertisement of the buying partners these purchasers with unexpected or drive purchasing yet in this examination customer buy those items from which buyer are sensitively connected. Furthermore, these connections are made through promotion as sound, feature and content structure, which requests him or her. (ZU Abideen, 2011)
TV advertising is an astoundingly fruitful instruments of bestowing message to its proposed vested party as it can join visual & sound correspondence and thusly this makes ads is a fundamental medium to make people aware of any things. There are differing things which the women purchasers used, in that the FMCG things they pick in the wake of getting information about those particular things. This paper presents the outcomes of a study planned to test the Impact of TV publicizing and on women clients' buying behavior.
Unlike past studies, regardless, the effects of such correspondence structures on women's' are evaluated in the association of family unit decision making however in this examination paper the item is to study on different components which affected on buying lead, their satisfaction with advancing strategies in FMCG things, their month to month utilize etc. The Primary data has been assembled from 30 respondents from Chandrapur City. A Structured overview has been encompassed contained 10 request which has been asked to women clients. The discretionary data has been accumulated from books, destinations, articles, TV et cetera. Finally some Finding, imperatives, conclusions & proposal has been formed in this paper. Regardless of the way that the different media spread care however TV publicizing accept a basic part in buying behavior of women purchasers. (Geeta Sonkusare, 2013)
Geeta Sonkusare (2013) concluded that TV advertising have uncommon impact on obtaining behavior of women customers. Before gaining anything customers/ clients accumulates information for their real purchasing decision making activities along these lines publicizing is generally gotten to get information about FMCG things. There are different variables influenced on acquiring behavior of women buyers in that it has been watched that Social and individual components have more affected. Most prominent women clients get influenced by verbal trade in chandrapur city. It has been also induced that Maximum no. of women purchasers are pulled in towards the showcasing method through advancing and Maximum no. of buyers from Chandrapur city utilizes month to month more than 2000 rupees on acquiring FMCG things. Along these lines Television publicizing accept a critical part in buying behavior of women buyer in Chandrapur city.
From the beginning of 20th century efforts have been done to make web ads more like TV ads. In fact now they are trying it to bring about a noticeable improvement than TV advertising. For this reason they want to make internet advertising more attractive and more demanding to customers. (Srivastava Priyanka 2012)
Different types of internet marketing are being used to attract customers like presentation advertising, web search advertising, website search improvement, online networking showcasing, email showcasing, referral promoting and substance promoting. (Srivastava Priyanka 2012)
Email marketing is one of the most useful and most successful types of advertising because it targets directly to the person whom we want to target. Email marketing is also used to retain consumers or to build loyalty among consumers. (Srivastava Priyanka 2012)
Consumer usually use internet to get information about the products and to evaluate the alternatives as shown in previous researches. Internet is widely used to evaluate different alternatives, although online advertising are entertaining but usually it is not considered credible and reliable among masses and even many people call it irritating. Because now a days trick banners, pop ups and pop under are used to advertise the product, It is becoming more complex and more non reliable. Spam advertisements have also affected the reliability of online advertisements but online advertisements and online marketing is improving day by day and eventually it will be the most used advertising type. (Srivastava Priyanka 2012)
As showed by the late research on buyer conduct on the Internet customers, there are four diverse customer clusters with unique suggestions and motivations: * Investigation * Entertaining * Shopping * Information
(Cotte, Chowdhury, Ratenshwar & Ricci, 2006)
All around in a study on impact of web ads on buyer conduct, the conclusions which began from the survey which is coordinated over the 100 number of people from Lucknow (Raja ji Puram & Alambagh) city. (Srivastava Priyanka 2012)
G. Bakshi and Dr. Gupta (2003) conducted research on web promoting and its effect on buyer purchasing conduct. Their study is focused around the degree and mixed bag of online promotion which is developing significantly. Organizations are using more on online commercial than some time recently. Understanding the elements that impact online ad viability is indispensable. This study looks to investigate the variables that help the adequacy of online notices and influence purchaser obtaining aim.
Online advertisement has become quickly in the most recent decade. By 2000 web promoting using in the US arrived at $8.2 billion. (Hollis, 2005).
Now a day's people spend most of their time on internet or social websites. However, the becoming reliance on web as a definitive source data and correspondence, make it a main ad stage, also later internet promoting developed to turn into a key element in which organizations attain reasonable returns for their items and administrations. Internet advertising is a sort of bulk correspondence which is focused around customary type of promoting yet creates its correspondence methods in connection with the new specialized and medium centered prerequisites. Comprehensively, internet advertisement is about conveying ads to Internet/online clients through Web locales, email, and promotion backed programming and Internet-empowered advanced mobile phones. (G. Bakshi and Dr. Gupta, 2003)
G. Bakshi and Dr. Gupta (2003) concluded that with the expanded selection promotion splitting of the Internet, World Wide Web is getting to be step by step a standard ad stage. Data and interchanges of new innovations, has made the insights group and development this group has set a specific situations confronting the crowd. Business promoting Brokers are attempting adjacent to utilization of the images, shades mix, with attention on standards and practices of web publicizing to utilization of the most recent correspondence and media advances for items present, to pull in the group of onlookers tends thana item or administration. They are attempting to speak with a more extensive crowd that, acquainted with their most loved through diverse ways and at present are attempting to publicize items with this working. Essential variable in fruitful advertising and promoting methodologies is an understanding of shopper conduct. (Gilaninia, Taleghani, & Karimi, 2013)
Advertising is a vital segment of advertising, particularly e-marketing. (Strauss 2001)
Advertising is carried out: 1. Offline Advertising or customary media (Like Newspapers, FM Radio, Magazine, TV) 2. Internet Advertising (Like pop ups and Emails). (Solomon 1996)

Web publicizing from 1994, has suggested truly and specialists additionally know watch it as upheaval in promoting from the approach of TV. (Sun, 2010)
Done methodology of procurement through web which can be called online buying. Web buy is carried out as an approach to spare time buy than that of customary buy. (Gilaninia, 2013)

Gilaninia, Taleghani, & Karimi (2013) reasoned that including preferences of web promoting can be refered to two-route correspondence with the gathering of people, moderately minimal effort, widespread and sheets access. Web publicizing is productive on purchaser conduct in procedure of items buy.
SMS advertisement makes a great deal of chances for the advertisers in advancing their items successfully. SMS is an instrument through which the advertisers line on the way to the clients and influence them to buy. SMS advertisement is additionally utilized to investigate the clients’ want and buying behavior. (Aamir, W. Ikram, Syed M Ali, S. Amjad Hasnu, & Khalid Zaman, 2013)
Judgment of client behavior matters in light of the fact that spontaneous commercials may prompt customers' disappointment and unanticipated results. (Barnes, S. and E. Scornavacca, 2003)

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CHAPTER 3: RESEARCH METHODS
3.1 Method of Data Collection
Survey Questionnaire used as the method of data collections from the respondents. The data has been collected from the students of Iqra University Main Campus located in Karachi, Pakistan, the no.1 private sector business University of Sindh. and giving them the questionnaire to fill it out.
3.2 Sampling Technique
Random sampling technique has been used to collect the data. We have been asked the question randomly from the students to reveal their perceptions.
3.3 Sample Size
A sample sizes of 90 respondents comprising of general consumers.
3.4 Instrument of Data Collection
We have used close ended questionnaire for this research as an instrument for data collection. The questionnaire consists of close ended questions. Many questions that are given are based upon the perception of the customers. They reveal their perception about the impact of advertising on consumer buying behavior.
3.4.1 Validity and reliability test
Our test is reliable and valid. Reliability analysis has been performed using SPSS and Cronbach's Alpha found is 0.649 which indicates acceptable reliability. It has been tested on the population and it will give the same result on retest.

3.5 Research Model Developed
Consumer buying behavior

TV Advertisement * Covert Advertising * Commercial breaks

Online Advertisement * Website ads * Pop up ads
Direct Marketing * Email * SMS * One to One marketing-
Consumer buying behavior

TV Advertisement * Covert Advertising * Commercial breaks

Online Advertisement * Website ads * Pop up ads
Direct Marketing * Email * SMS * One to One marketing-

3.6 Statistical Technique
In this research SPSS has been used to identify the result. T-Test has been used to interpret the findings and to see the hypothesis that was given were confirmed or rejected in the process.

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CHAPTER 4: RESULTS 4.1 Findings and Interpretation of the Results

Case Processing Summary | | | N | % | Cases | Valid | 90 | 100.0 | | Excludeda | 0 | .0 | | Total | 90 | 100.0 | a. Listwise deletion based on all variables in the procedure. |

Reliability Statistics | Cronbach's Alpha | N of Items | .649 | 14 |

A commonly-accepted rule of thumb is that an alpha of 0.7 (some say 0.6) indicates acceptable reliability.
The alpha coefficient for the 14 items is .649, so we can say that the items have acceptable internal consistency.

Scale Statistics Mean | Variance | Std. Deviation | N of Items | 34.89 | 20.167 | 4.491 | 14 |

Group Statistics | | Gender of the respondent | N | Mean | Std. Deviation | Std. Error Mean | TV | Male | 73 | 2.5452 | .51882 | .06072 | | Female | 17 | 2.5412 | .42875 | .10399 | DM | Male | 73 | 2.5918 | .50381 | .05897 | | Female | 17 | 2.5059 | .40693 | .09869 | OA | Male | 73 | 2.3048 | .47369 | .05544 | | Female | 17 | 2.3971 | .38587 | .09359 |

The means are very important. They show us the magnitude of the difference between genders and we can see which group has a higher or equal mean. For example, we can see that the mean for Males is almost equal that of females in all three variables. We can see that male participants gives nearly equal consideration to all three variables when compared to Female participants.

Independent Samples Test | | | Levene's Test for Equality of Variances | t-test for Equality of Means | | | | | 95% Confidence Interval of the Difference | | | F | Sig. | t | df | Sig. (2-tailed) | Mean Difference | Std. Error Difference | Lower | Upper | TV | Equal variances assumed | 1.001 | .320 | .030 | 88 | .976 | .00403 | .13563 | -.26551 | .27357 | | Equal variances not assumed | | | .033 | 28.048 | .974 | .00403 | .12042 | -.24262 | .25068 | DM | Equal variances assumed | 1.010 | .318 | .654 | 88 | .515 | .08590 | .13132 | -.17507 | .34686 | | Equal variances not assumed | | | .747 | 28.650 | .461 | .08590 | .11497 | -.14936 | .32116 | OA | Equal variances assumed | .286 | .594 | -.746 | 88 | .457 | -.09226 | .12360 | -.33790 | .15337 | | Equal variances not assumed | | | -.848 | 28.423 | .403 | -.09226 | .10878 | -.31493 | .13041 |

Since the Sig (2-Tailed) value of all variables i.e. TV advertisement (TV), Direct Marketing (DM) and Online advertisement (OA) is greater than 0.05, we can conclude that there is no statistically significant difference between the mean number of variable for the male and female conditions. 4.2 Hypotheses Assessment Summary S.NO. | Hypotheses | T | SIG.2-tailed | Empirical Conclusion | H1 | TV advertisement | 0.030 | 0.976 | Rejected | H2 | Online advertisement | -0.746 | 0.457 | Rejected | H3 | Direct marketing | 0.654 | 0.515 | Rejected | ............................................................................................................ CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion There is no impact of TV advertising on consumer buying behavior. There is no impact of Online advertising on consumer buying behavior. There is no impact of direct marketing on consumer buying behavior.
5.2 Discussions From our results we concluded that people of Pakistan don't get influenced by advertisement even if the product is advertised on TV by their favorite celebrity or actor. TV advertisements are the source of information for them about a new product but pursuing a new product is may be influenced by other sources but not TV advertisements. They don’t switch or pursue a product too often As per researches, Pakistan has a low rate of early adopters along these lines our hypothesis has been rejected and people of Pakistan demonstrated that they don't get influenced by TV advertisements and change their brands and they are brand steadfast.
The finding of this research shows that there exists a feeble relationship between online advertisements with the consumer buying behavior. Online advertisement has even worst situation as compared to TV advertisement. There is an uncertainty among people about online ads so they don’t take interest in online ads and simply ignore them.
The work demonstrates that the items advertised through direct marketing like SMS or Emails have once in a while any importance to the client's specific needs. The research also shows that customers of social group of students do not spend time to read promotional messages or Emails. People don’t have time to entertain direct marketers and gets irritated when listen to their calls.

5.3 Implications and Recommendations
Characterize Communication i.e. their objective ought to be to concentrate on a solitary advantage. In attempting to convey an excess of things, the customer will just get confused.
Like any promoting communications web ads needs to be dictated by a set of advertising objectives. Going hand in hand is possible communication objectives that an affiliation may need to accomplish through its communication:
• Build brand loyalty
• Increase website traffic
• Generate sales
• Build a social media following
• Improve customer convenience

5.4 Future Research
This research has been conducted students, thus aggregate up this finding, it is recommended for future researchs to do this research by using distinctive gatherings.

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...they want to be, it all depends on their personality if they will be fool or not by such an impressive kind of art that can really convinced the consumers every time they watch or hear about a spectacular advertisements. Advertising is a form of communication for marketing that is used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. Of all the Marketing weapons, advertising is renowned for its long lasting impact on viewer’s mind, as its exposure is much broader (Katke, 2007). Advertising reaches us through a channel of communication referred to as a medium. Through all the mediums advertising influence audiences, but television is one of the strongest medium of advertising. Advertising is the best way to communicate and convince the customers to buy a new or an existing product. It can influence the buying behavior of the consumers by how effective the advertisement was. This paper studies about the influences of advertising on consumer buying behavior, on how it affects the preferences of the consumers in buying a product. The advertising affects the everyday activities of the economy in the lives of people. It influences people through education, reassurance and persuasion. The major aim of advertising is to impact on buying behavior. No company can become a market leader unless they invest lots of their investment in promotional purposes (Hussainy et al.,......

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