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A PROJECT ON
A STUDY ON THE INFLUENCE OF BRAND
AWARENESS, BRAND TRUST AND BRAND LIKINGWITH RESPECT TO THE PURCHASE INTENTIONS OF
GOLD LOAN CUSTOMERS
SUBMITTED TO
AMITY UNIVERSITY
IN PARTIAL FULFILLMENT OF
MASTER OF BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF
PROF. ANITHA SURESH
SUBMITTED BY:
SANTY SAJI JOHN
ENROLLEMENT NUMBER: A31101911036
BATCH: 2011-2013
AMITYGLOBALBUSINESSSCHOOL
RAJAJI ROADKOCHI-35
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AMITY GLOBAL BUSINESS SCHOOL
KOCHI
CERTIFICATE
This is to certify that the project entitled A STUDY ON THE INFLUENCE OF BRAND
AWARENESS, BRAND TRUST AND BRAND LIKING WITH RESPECT TO THE
PURCHASE INTENTIONS OF GOLD LOAN CUSTOMERS has been successfully carriedout by Ms. SANTY SAJI JOHN in partial fulfilment of Master of Business Administration
under my guidance during academic year 2011-2013.
Place: Kochi Ms. ANITHA SURESH
Date: (Internal Guide)
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AMITY GLOBAL BUSINESS SCHOOL
KOCHI
CERTIFICATE
This is to certify that the project entitled A STUDY ON THE INFLUENCE OF BRAND
AWARENESS, BRAND TRUST AND BRAND LIKING WITH RESPECT TO THE
PURCHASE INTENTIONS OF GOLD LOAN CUSTOMERS has been successfully carried
out by Ms. SANTY SAJI JOHN in partial fulfilment of Master of Business Administrationunder my guidance during academic year 2011-2013.
Place: Kochi Prof. BIJU VITHAYATHIL
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Date: DIRECTER, AGBS, KOCHI
AMITY GLOBAL BUSINESS SCHOOL
KOCHI
DECLARATION
I, SANTY SAJI JOHN do hereby declare that the project entitled A STUDY ON THE
INFLUENCE OF BRAND AWARENESS, BRAND TRUST AND BRAND LIKING WITH
RESPECT TO THE PURCHASE INTENTIONS OF GOLD LOAN CUSTOMERS is an
original work carried out by me under the guidance of Prof .ANITHA SURESH and has not been
presented earlier for any other university for the award of degree in Master of Business
Administration of Amity University.
Place: Kochi SANTY SAJI JOHN
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Date: Roll No. : A31101911036
ACKNOWLEDGEMENT
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TABLE OF CONTENTS
I. EXECUTIVE SUMMARYII. INTRODUCTION
III. OBJECTIVE OF THE RESEARCHIV. RESEARCH METHDOLOGYV. SAMPLE DEIGN
a. SAMPLE TECHIQUEb. SAMPLE SIZEc. SAMPLE TYPEd. QUESTIONNAIRE
VI.LITERATURE REVIEW
VII.PROBLEM FORMULATION
VIII.DATA ANALYSIS AND INTERPRETATION
IX.FINDINGS
X.RECOMMENDATION
XI.CONCLUSION
XII.BIBLOGRAPHY
XIII.ANNEXURE
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Executive Summary
Gold has long been a valued commodity, particularly in India where it is
considered auspicious, and has been in use for centuries in the form of
jewelry, coins and other assets. Though gold is a highly liquid asset, it wasnt
until recently that consumers leveraged it effectively to meet their liquidity
needs.
Lenders provide loans by securing gold assets as collateral. Compared with
the rest of the world, in India the gold loan market is big business. Until a
decade back, most of the lending was in the unorganized sector through
pawnbrokers and money lenders. However, this scenario changed with the
entrance of organized sector players such as banks and non-banking finance
companies (NBFCs) which now command more than 25% of the market. The
project intends to find out the relationship of the brand awareness, brand
liking and brand trust with the purchase intentions of the gold loan
customers. Furthermore, the study also tries to understand the important
factors that lead to purchase decision of a gold loan.
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CHAPTER 1
INTRODUCTION TO RESEARCH
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INTRODUCTION
Advertising is defined as the art of positioning and creating brands and
persuading consumers to buy them through messages in mass media or
personalized media that is gaining much attention these days. It is also themeans of informing as well as influencing the general public to buy products
or services through visual or oral messages. A product or service is advertised
to create awareness in the minds of potential buyers. Some of the commonly
used media for advertising are T.V., radio, websites, newspapers, magazines,
bill-boards, hoardings etc. As a result of economic liberalization and the
changing social trends advertising industry has shown rapid growth in the last
decade. Advertising is one of the aspects of mass communication. Advertising
is actually brand-building through effective communication and is essentially
a service industry. It helps to create demand, promote marketing system and
boost economic growth. The final cost of advertising for any company includes
creative and agency costs; local branding and marketing efforts; catalogs,
brochures and other printed matter; the creation and maintenance of web
sites and myriad other components, in addition to expenses for media. Thus
advertising forms the basis of marketing.
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OBJECTIVE
To study the relationship of brand awareness and purchaseintentions
To study the relationship of brand trust and purchase intentions To study the relationship of brand liking and purchase intentions To understand the most important factor for choosing a gold loan
SCOPE OF STUDY
The study was conducted among the general public customers within
Cochin.
LIMITATIONS OF STUDY
Time limit Sample size is small Rural or semi urban areas were not covered
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Chapter 2RESEARCH METHODOLOGY
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Research MethodologyThis research consists of primary and secondary research.
Primary Sources
Face-Face interaction with customers (questionnaires).Secondary Sources
BooksInternetArticlesMagazinesNews papers
Sampling techniqueIn this project the target population is the general public of Cochin who are associated withgold loans.The research was carried out through non probability samplingtechnique. Convenience sampling technique in specific out of the non probability samplingtechnique.
Sample sizeIn order to get an clear understanding of customers I opted for a sample size of 30 unitsspread across the city.
Sample Frame
Area Sampling -Cochin
Tools for Data collectionThe questionnaire that has been drafted for this research is a structured questionnaire. It
includes various scaling techniques like numerical scale and constant scale.
TYPE OF RESEARCH
Descriptive hypothesis
DATA ANALYSIS TOOL
SPSS 17.0
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CHAPTER 3LITERATURE REVIEW
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Evolution of advertising industry
There are four very influential inventions that have shaped the media and
thus the advertising industry - the printing press, radio, television and the
Internet. The printing press made the wide dissemination of information with
words on paper possible, mainly advertisements in newspapers and
magazines. Selling material had to be created and advertising agencies were
born. The first advertising agency, Volney B. Palmer, was opened in
Philadelphia in 1841. By 1861 there were 20 advertising agencies in New
York City alone. Among them was J. Walter Thompson, today the oldest
American advertising agency in continuous existence. Radio became a
commercial medium in the 1920s. For the first time, advertising could be
heard, not just seen. Soap operas, music, and serial adventures populated the
new medium, and as radios appeared in virtually every home in America, sales
of products advertised on the air soared.
Advertisers rushed to write infectious advertising jingles, an art form
that still has its place in the advertising repertoire of today. Then television
changed everything. Although TV was invented in the 1920s, it didn't become
a mass commercial medium until the 1950s when the prices of television sets
began to approach affordability. Print and radio had to take a back seat
because, for the first time, commercials were broadcast with sight, sound and
motion. The effect of the television on the advertising industry and the way
products were sold was remarkable. Advertising agencies not only had to
learn how to produce these mini movies in units of 30 and 60 seconds, they
had to learn to effectively segment the audience and deliver the right
commercial message to the right group of consumers. Cable television was the
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next great innovation, offering a greater variety of channels with more specific
program offerings. That allowed advertisers to narrowcast. Before the advent
of cable television, the networks attempted to reach demographics by airing at
different times throughout the broadcast period. Soap operas were broadcast
during the day to reach women, news in the evening to reach an older target
audience. Cable television, on the other hand, brought with it channels like
MTV that catered to young music lovers, ESPN, for (typically) male sports fans,
and the Food Network, for people who love cooking (or at least love to watch
others cook). These new advertising channels were delightful for advertisers
who wished to target certain audiences with specific interests, though less sofor the networks who saw their share of ad revenue dwindle.
In the 1880s a new era of advertising began: New methods of
manufacturing led to greatly increased outputs and decreased costs for the
producers of consumer goods. The products at that time could be packaged at
the plant itself. Moreover, the telegraph network came into existence and a
network of rail - roads, had also crisscrossed the continent. All these were the
factors, which allowed a nation-wide distribution and nation-wide
advertising. Advertising plays a significant role in today's highly competitive
world. Whether its brands, companies, personalities or even voluntary or
religious organizations, all of them use some form of advertising in order to be
able to communicate with the target audience.
Broadly speaking the history of advertising might be divided into six
periods or stages as follows:
a) Pre-printing period, prior to the Fifteenth century.b) . Early printing period from the Fifteenth century to about 1840.
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c) Period of expansion, from 1840 to 1900.d) Period of consolidation from 1900 to 1925.e) Period of scientific development, from 1925 to 1945.f) Period of business and social integration from 1945 to the present.
a)Pre-Printing Period:The 'Town crier' was the first means of supplementing sign advertising
during the Pre-printing period. The 'criers' had charters from the
Government and were often organized in a sort of union. Their numbers
were usually restricted. In the province of Berry, in France, in the year 1141,
twelve 'criers' organized a company and obtained a charter from Louis VII
giving them the exclusive privileges of town crying in the province. The Power
of commercial criers grew until they were able in some instances to obtain an
edict from the ruler of the land forcing shopkeepers to employ a 'crier'
b). Early Printing Period:
The invention of the printing press and the revival of learning meant much to
business. It had led to the production of advertisements in large
quantities for wide distribution. The first printed English advertisement was
a 'handbill' or poster announcement written by William Caxton in 1472.
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c). Period of Expansion:
This period includes, roughly, the sixty years between 1840 and' 1900. It was
during these six decades that the great changes, which had a vital influence on
the business of advertising, were witnessed in the United States. By 1840,
railroads in the United States were recognized as an efficient means of
transportation. This had led to the broadening of markets and had resulted in
an increase in the number of advertisements in magazines, which served large
territories. The growth in the numbers and the circulation of magazines were
mainly due to the development of rapid and long distance transportation. This
parallel movement is rather striking, while it does not prove a casual
relationship between the growth of long distance transportation and
advertising media, it is logical to believe that the increase of
transportation facilities did have a definite influence on the rapid rise in
the number of publications. In fact, the increased revenue from the sale of
advertising space encouraged a growth in the number of publications and
their wider circulations. Advertisements during that period were mostly trade
advertisements in nature, announcing the arrival of shipments of Coffee, Tea,
Silk cloth, etc.
Advertisements at that time were also designed specially for dealers in
consumer goods as well as grocery or dry goods. Advertisements were mostly
handled by printers and publishers of newspapers, who used to sell
advertisement space to procure necessary finances for their survival and
growth. In 7893 more than half of over a hundred firms spending more than
fifty thousand dollars annually on advertising were patent medicine
manufacturers. But only 20 years later, many of these firms were not
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patent medicine manufacturers anymore but manufacturers of food, soap,
cosmetics and automobiles. These firms began to market their packaged
goods under various brand names. Some of the first brands were of the firms
like Ivory, Colgate, Wrigley and Coca Cola, etc. Previously household products
of daily use like milk, sugar, soap, rice and candles had been sold in the
neighborhood shops in bulk packages. Emergence of consumer market during
mid Nineteenth century gave rise to the modern marketing system, which had
led to the emergence of consumer advertisements on the scene in late
nineteenth century.
d). Period of Consolidation:
This period stretches over a period of 25 years from 1900 to 1925.1n 1911
a crusade against the ranker types of untruthfulness in advertising was
launched in the united states". Printers Ink. Inc., the Curtis Publishing
Company and other organizations led the fight to reduce or eliminate the use
of gross exaggeration, false testimonials and other forms of misleading and
untruthful advertising1'. It was also during this period that trust - busting,
expose and reform programs became popular. It is not surprising that
advertising was caught up in this clean up movement. The Associated
Advertising clubs of America helped in launching a campaign to promote
truthful and ethical advertising. Consequently, several codes for truth in
advertising were devised. Probabh the most famous was the Printers Ink.
Statute, published in 1911. It was a model that indicated the types of activities
that were considered ethical, unethical and questionable.
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The establishment of the Audit Bureau of Circulations in 1914 was
another move for fewer untruths in the field. This Bureau sewed to validate
the circulation statements made by publishers. This was a measure for self
preservation but it sewed to consolidate the gains made in the heyday of
publication and advertising growth. By the end of this period many
advertisers had established their own market and consumer research
departments and specialized research firms had been organized to make
independent and unbiased investigations for advertisers and media. This
increased the quality of advertising strategy and the performance as well as
benefits rendered to consumers. The advent of Radio in 1920 marked aremarkable development in the advertising world. The initial stages excluded
the use of radio for advertising; only to be included two years later with the
W.E.A.F. broadcasting station in New York selling radio time to producers.
Thus during 1920s advertisers and their agents had come to realize the
possibilities of radios as a means for attracting the prospective consumers of
various products and services. With its drama and immediacy, radio could
convey their messages directly to the consumers who would not need to
purchase a publication or even need to be literates. By the mid 1920bs,
advertisers' sponsored programmes on Radio were a common feature in the
US. Only to be joined by T.V.
e). Period of Scientific Development:
This period saw the application of the scientific methods to resolve the
problems of advertising. Knowledge was systematized to a much greater
degree than before; and facts were observed, recorded and classified through
the application of various scientific devices. There were a few "radical"
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advertising men who were so bold as to suggest that advertising be subjected
to tests to prove or disprove its ability to work the wonders claimed for it. Not
until the depression, starting in 1929, did these men get much of a hearing.
But with advertising appropriations receiving liberal cuts, both professional
advertising men and advertisers set out to test the effectiveness of advertising
as a selling tool. Consequently, emphasis began to be placed on consumer
research with a view to making advertisements more meaningful and ethical.
Efforts in this direction include the Audience Research Institute formed by
A.C. Nielson and George Gallup in order to evaluate the advertisements on
psychological basis, which had enabled the businessmen in improvingconsiderably the quality of advertisements. During this period of scientific
development serious attention was given by many agencies and organizations
to various methods for testing the sales effectiveness of advertising strategy,
media and copy. This was a new philosophy in the sense that it had meant
subjecting the work of the creative man, the artist, the person who
depended upon his own insights and intuition to some kind of performance
yardsticks.
f. Period of Business and Social Integration:
The post war years were characterized by prosperity in advertising. In the
1950s came television which developed fast to the advertising-media .The
growing popularity of T.V as an important media of mass communication and
recreation had contributed greatly in bringing about this situation and had
also provided the much needed momentum to the advertising business. This,
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in its turn, had led to a host of American companies to start sponsoring
T.V programmes. These advertisers could demonstrate the use of their
products and services and present well-known figures to praise such products
and services. They also could arrange emotions through television. With the
passage of time, advertising assumed an important position as a means of
mass communication in Industrial societies. It not only generated greater
sales but also had played an active role in boosting the images of companies.
The increased recognition which the advertising organizations attained as
a part of the total fabric of the society had enabled such organizations all
over the world to establish themselves as an integral factor in thedissemination of vital information pertaining to various products and
services beneficial to the society. Advertisements also have become a
common medium through which churches, political parties, labour groups,
trade associations and the ordinary people communicate their ideologies,
ideas and concepts to many of the publics making up the total society.
Advertising has also become an institution of persuasion to promote such
social and economic values as safety, health, education benevolence. Liberty,
democracy, free enterprise and tolerance. The salary structure in advertising
is quite high and if you have the knack for it one can reach the top. It is an
ideal profession for a creative individual who can handle work-pressure.
Today, new areas are emerging within advertising like event management,
image management, internet marketing etc. Event management is wherein
events are marketed; Image management is wherein a particular profile of an
individual or an organization is projected. Internet marketing has also
brought about a lot of changes in advertising as Internet means that one is
catering to a select group of audience rather than a mass audience.
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International scenario
The world advertising industry is characterized by a large number of small
and medium sized advertising agencies that operate primarily in one country
and by a small number of very large advertising agencies with operations in
many countries. These agencies have developed extensive networks of offices
throughout the world in order to coordinate the advertising process in all the
countries where their clients do business. These networks often include both
wholly-owned subsidiaries and formal relationships with local advertising
agencies to establish a presence in new markets, particularly in emerging
markets.
The advertising industry enjoyed a rebound in 2010-11, as significant
economic growth boosted emerging nations, and the U.S. and other mature
nations found themselves on firmer ground. Analysts at Magna estimated
global advertising revenues at $427 billion in 2011 and $449 billion for 2012
(an increase of about 5%). Media-buying firms, TV broadcasters and radio and
billboard companies are making positive noises about the future. Print
advertising looks more promising and several US magazines saw ad pages
increase quite dramatically. Worldwide over $400 billion is spent on
advertising. Approximately half of that amount is spent in the US and the
other half outside the US. The bulk of expenditure outside the US takes place
in Europe and Japan, although Brazil, Canada, Mexico, and Australia are also
important advertising markets. Outside of these markets, China is the next
largest advertising market and is also growing rapidly. The future of the
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advertising industry is not in doubt, things will get better, but only companies
that have positioned themselves correctly will be able to capitalize on the
upswing.
To do this, many firms are looking toward technology as the point of
departure for huge returns. The convergence of the Internet with television,
the growth of wireless communication, and the increasing use of digital video
recorders all offer new avenues and challenges for advertisers. Further
consolidation across national borders is also expected as advertising firms try
to deliver global capabilities in an increasingly competitive market. In
international market the process of communicating to a target audience is
more complex because communication takes place across multiple contexts,
which differ in terms of language, literacy, and other cultural factors. In
addition, media differ in their effectiveness in carrying different appeals. A
message may, therefore, not get through to the audience because of people's
inability to understand it (due to literacy problems), because they
misinterpret the message by attaching different meanings to the words or
symbols used, or because they do not respond to the message due to a lack of
income to purchase the advertised product. Media limitations also play a role
in the failure of a communication to reach its intended audience.
The world advertising industry is characterized by a large number of
small and medium sized advertising agencies that operate primarily in one
country and by a small number of very large advertising agencies with
operations in many countries. These agencies have developed extensive
networks of offices throughout the world in order to coordinate the
advertising process in all the countries where their clients do business. These
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networks often include both wholly-owned subsidiaries and formal
relationships with local advertising agencies to establish a presence in new
markets, particularly in emerging markets. In an effort to establish greater
control over their advertising, many major advertisers are consolidating all
their advertising with one agency. For some major advertisers such as IBM
and Citibank, this represents annual advertising expenditures in excess of
$500 million worldwide. The majority of these large advertising agencies are
headquartered in the US. Of the ten largest advertising agency groups, seven
are headquartered in the US, and one each in the UK, France and Japan,
although WPP, the British agency holding company, is made up of two largeUS-based agencies. With the exception of Dentsu, the Japanese agency, most
other agency networks generate the majority of their revenues outside their
home country.
The largest agency group, Omnicom, places over $37 billion of
advertising for its clients around the world and derives half its revenue from
outside the US. Omnicom has 891 offices in over 85 countries and employs
35,600 persons worldwide (57 percent work outside the US). US-based
advertising agencies and their subsidiaries are responsible for most of the
advertising throughout the world. Worldwide over $400 billion is spent on
advertising. Approximately half of that amount is spent in the US and the
other half outside the US. The bulk of expenditure outside the US takes place
in Europe and Japan, although Brazil, Canada, Mexico, and Australia are also
important advertising markets. Outside of these markets, China is the next
largest advertising market and is also growing rapidly.In the view of the
advertiser the primary objective of advertising is to sell products or services.
In achieving this primary goal, there are often profound secondary
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consequences. Advertising exerts a formative influence whose character is
both persuasive and pervasive. Through the selective reinforcement of certain
social roles, language and values, it acts as an important force fashioning the
cognitions and attitudes that underlie behavior not only in the market place,
but also in all aspects of life. In an international setting, advertising has an
important social influence in a number of ways. First, much international
advertising is designed to promote and introduce new products from one
society into another. Often this results in radical change in life-styles, behavior
patterns of a society, stimulating for example the adoption of fast food, casual
attire or hygiene and beauty products. International advertising alsoencourages desire for products from other countries, it creates expectations
about " the good life", and establishes new models of consumption.
Advertising is thus a potent force for change, while selectively reinforcing
certain values, life-styles and role models. Often the symbols, ideals and mores
that international advertising portrays and promotes are those of Western
society and culture. Through the reach of advertising, brands such as Levi's,
Nike, Marlboro and McDonalds are known by and have become objects of
desire for teens and young adults throughout the world. Similarly, images and
scenes depicted in much international advertising are either Western in origin
or reflect Western consumption behavior and values. Even where adapted to
local scenarios and role models, those shown often come from sectors of
society, such as the upwardly mobile urban middle class, which embrace or
are receptive to Western values and mores.
At the same time, international advertising also acts as an integrating
force across national boundaries. It disseminates messages using universal
symbols and slogans, and establishes a common mode of communication
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among target audiences in different parts of the world. At the same time,
multicultural values are reinforced by advertisers, who adopt images
incorporating peoples of different nations and diverse cultural backgrounds,
as, for example, the Colors of Benetton campaign or the British Airways
"Peoples of the World" campaign. The impact of such campaigns is further
reinforced by the growth of global media such as Star TV, CNN, MTV or print
media that target global audiences worldwide. Consequently, while, on the
one hand, international advertising can be viewed as a colonizing force
propagating Western values and mores throughout the world, it is also an
important force integrating societies and establishing common bonds,universal symbols and models of communication among peoples in different
parts of the globe.
The top five advertising companies in the world are: -
a) Omnicom Group:b)
WPP Group
c) Interpublic Groupd)Publicis Groupe) Dentsu Group
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Indian scenario
The Indian advertising industry is talking business today. It has evolved
from being a small-scale business to a full-fledged industry. It has emerged as
one of the major industries and tertiary sectors and has broadened its
horizons be it the creative aspect, the capital employed or the number of
personnel involved. Indian advertising industry in very little time has carved a
niche for itself and placed itself on the global map. Advertising industry is a
rapidly growing industry and determines to a considerable extent the gross
domestic product of any country. The advertising industry besides functioning
as an intermediate between the manufacturers and the customers plays an
important role in the economy of the country. This industry necessitates
investment for funding different resources. One cannot measure the degree of
development by interpretation of inputs in the economy which yields some
production. In the event when consumption levels far exceed than what is
reckoned, this is not a means of triggering or bringing about transformation in
the culture, society or development in human resources or economy. What the
time demands is optimum and efficient execution of advertising projects by
involving appropriate technology along scientific lines.
Indian advertising industry with an estimated value of RS 13, 200-crore
has made jaws drop and set eyeballs gazing with some astonishing pieces of
work that it has given in the recent past. The creative minds that the Indian
advertising industry incorporates have come up with some mind-boggling
concepts and work that can be termed as masterpieces in the field of
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advertising. Indian advertising industry is well recognized all over the world
for its creative output and high quality advertisements. The performance of
Indian agencies and advertisements and marketing campaigns has been well
noted and awarded at various global stages such as Cannes Lions. The
industry is continually evolving to give better returns to clients and
memorable ads for the target audience. What the Indian ad industry has
managed to achieve become more significant if you realize the challenges
before it. The industry caters to a really huge populace, though the real
challenge lies in addressing the stunning diversity. The ads have to cater to
the different tastes and preferences of hundreds of languages, dozens ofreligions, diversity of regions, age groups and castes, and churn out
advertisements that appeal to all of them, without offending any of them.
Perhaps it is because of this reason that Indian oriented campaigns of even
giant MNCs are handled separately by India based agencies and have largely
localized content. Indian advertising industry with an estimated value of
13,200 cores has made jaws drop and set eyeballs gazing with some
astonishing pieces of work that it has given in the recent past. The creative
minds that the Indian advertising industry incorporates have come up with
some mind- boggling concepts and work that can be termed as masterpieces
in the field of advertising.
Advertising agencies in the country too have taken a leap. They have
come a long way from being small and medium sized industries to become
well-known brands in the business. Mudra, Ogilvy and Mather are some of the
top agencies of the country. Indian economy is on a boom and the market is on
a continuous trail of expansion. With the market gaining grounds Indian
advertising has every reason to celebrate. Businesses are looking up to
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advertising as a tool to cash in on lucrative business opportunities. Growth in
business has led to a consecutive boom in the advertising industry as well.
The Indian advertising handles both national and international projects. This
is primarily because of the reason that the industry offers a host of functions
to its clients that include everything from start to finish that include client
servicing, media planning, media buying, creative conceptualization, pre and
post campaign analysis, market research, branding and public relation
services.
Indian advertising has had many changing faces. The pre independence
advertisements were mostly about ladies goods, gents' clothes, travelling,
restaurants and hotels and entertainments for the British people in India.
Motor cars, electricity and lifts in houses were considered to be the items of
luxuries in those periods. Many of the early advertisements were about hotels
,four wheelers, tea, gramophones, cotton goods, tailoring shops, etc., and As
against 14 Advertising agencies in 1914, there were 45agencies in 1944,
indicating over a threefold increase in the number of agencies. However,
the gross annual media billing was just Rs. 5 core. This indicates that the
initial stages were marked by a slow growth in advertising agencies in the
country. Among the reasons cited for such a sluggish growth were the
unfavorable attitudes of companies towards advertising, limited market, slow
pace of industrialization and lack of competition. Their target audiences were
the British people in India, the princely families and the people from the upper
strata of the society. It is only after independence and the abolition of the
princely order that a new -born middle class received attention of advertisers.
The Indian market is also unique in the sense that TV advertising is actually
increasing and set to overtake print advertising over the coming years.
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Leading ad planners believe that the Indian audience still loves watching TV,
and is very receptive to TV ads. In addition, the TV ads are very audio visual in
nature, and can easily overcome any barriers of illiteracy, which is a major
impediment for print ads in India. Another notable trend on a global level that
still evades the Indian advertising industry is the mass migration of ad
spending to online and digital media. In highly developed ad markets such as
US and UK, the ad spending on digital and online media has increased
exponentially, and has actually exceeded ad spending on print advertising.
Now online ad spending constitutes almost 15% of overall ad spending in
these markets.
In India, online advertising are still to take off. This trend will continue
for at least the medium term, unless something on the lines on the mobile
phone revolution happens, and more Indian get access to reliable internet
access. Advertising agencies in the country too have taken a leap. They have
come a long way from being small and medium sized industries to becoming
well known brands in the business. Mudra, Ogilvy and Mathew (O&M),
Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top agencies of
the country. Keeping in mind the current pace at which the Indian advertising
industry is moving, the industry is expected to witness a major boom in the
times ahead. With all this, there is definitely no looking back for the Indian
advertising industry that is all set to win accolades form the world over.
Indian economy is on a boom and the market is on a continuous trail of
expansion. With the market gaining grounds Indian advertising has every
reason to celebrate. Businesses are looking up to advertising as a tool to cash
in on lucrative business opportunities. Growth in business has lead to a
consecutive boom in the advertising industry as well.
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The Indian advertising today handles both national and international
projects. This is primarily because of the reason that the industry offers a host
of functions to its clients that include everything from start to finish that
include client servicing, media planning, media buying, creative
conceptualization, pre and post campaign analysis, market research,
marketing, branding, and public relation services. Keeping in mind the current
pace at which the Indian advertising industry is moving the industry is
expected to witness a major boom in the times ahead. If the experts are to be
believed then the industry in the coming times will form a major contribution
to the GDP. With all this there is definitely no looking back for the Indianadvertising industry that is all set to win accolades from the world over.
Therefore for more information on Indian advertising, advertising agencies,
marketing and advertising.
The top 5 advertising companies in India are:-
a) Ogilvy and Mather Limitedb)J Walter Thompson Indiac) Mudra Communication Pvt. Ltdd)FCB-Ulka Advertising Ltde) Rediffusion-DY&R
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State scenario
Before 1890, Advertisements in this region were mainly in the forms of
Government notifications. During that period the people were informed of
such notifications put by the authorities through the beating of drums. In
addition to the Government notifications and the proclamations of the king,
advertisements of Pharmaceuticals, Watches, Religious books, Electric
galvanic rings and lockets had appeared in the newspapers. Dailies were not
popular during that period and the newspapers at that time had been brought
out without any regular periodicity. Rates of advertisements, both the rates
per insertion and for a long duration, were also published in these
newspapers. Advertisements appeared in the newspapers during that period
were also in the form of descriptive write ups.
Majority of the advertisements appeared in the newspapers between
1901-1910 were concerned with Ayurvedic medicines, Silver and Nickel
Watches, Fountain pens, Chitty Companies and Rubber companies, which had
a significant influence on society at that time. Advertisements of medicines
concentrated mainly on diseases that were common to little children,
Medicines for the health of pregnant women, purgatives and medicines that
can improve one's facial glow Advertisements on various types of watches
and fountain pens had usually appeared in newspapers along with their
pictures. Details regarding the issue of share of companies like Travancore
Brotherhood Company, Kollam were also put as advertisements in
newspapers in 1920. In this advertisement there was reference to the total
number of shares, its face value, how the amount would be collected.
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Imported seeds, optical, Harmoniums, Violins, Bicycle, Alarm clocks and
Time pieces, Second hand Type writers, etc., where the main items that
covered a substantial part of the advertisement spaces of the newspapers
during the period 1921-1928. By this time advertisements on films also
began to appear in the newspapers and magazines published from the State
Advertisements of Jewelers, like the Unniyattil Kuttanmenon Jewellers,
Trichur, Eswaramenon Jewelers, Kozhikode and Trissur also came up during
this time. Many of the advertisements during 1931-1940 were either
descriptive or informative type Advertisements about Hotels advertisements
making awareness to the public such as the advertisements of insuranceCompanies like Star of Travancore Life Assurance Co. Ltd, Thiruvalla
Associated insurance bank Co. Ltd, Kottayam Pioneer Insurance and banking
Co. Ltd and those inculcating the habit of saving among the people such as
State bank ,
Nedugadi Bank, Pala Central bank were the main categories of advertisements
capturing the attention of the readers of the newspapers and magazines
during this period. Besides these, advertisements of Jewelers, Furniture
marts, Bookstall, Studios, Toilet soaps and Vegetable oils like Dalda and the
producers of Ayurvedic medicines like Kotackal Arya Vaidyasala and
Dhanvanthary Vaidyasala had appeared frequently in newspapers and
magazines during this period. In addition to the advertisements mentioned
above, during 1941-50 advertisements of some of the newly emerged bankssuch as the Pala Commercial Bank, Catholic Bank of India Ltd and South
Indian Bank Ltd. Allopathic Medical shops , Malayalam Dictionary, Science
books , Watch dealers, Radios (Philips and Murphy), Lamps (Ever shine
Lamps ), Hindustan Umbrella factory, Automobile Workshops, Printing Press,
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Fertilizers, Cameras, Textile shops. Washing soaps (Swan 58 soaps), Toilet
soaps (Pears, Lux, Lifebuoy, sunlight, Rexona. Godrej etc.),Tea, Foot
wares(Bata), Advertising agency ( Associated Advertisers, Kottayam) , FACT,
National saving scheme( National Defense Savings Certificates) , Films ( like
Sasidharan ) .
Instead of giving long sentences and elaborate statements, advertisers
during this period used to advertise their products and services wit big
pictures, catchy words and captions. Advertisers of consumer non-durables
especially Toilet soaps (like Lux Toilet soap) had started giving
advertisements portraying beautiful ladies besides offering rare, vivid photos
highlighting the dressing patterns of Punjabi, Madrasi, Malayalee, Bengali,
Marwari and Marathi women with a view to motivate the female
households to buy this product Several companies had adapted these
similar styles and strategies during that period while advertising their
products in the print media.
During 1948-1950, Malayalam magazines and periodicals like
'Naradan', "Vikatan, were flooded with a variety of advertisements ranging
from the advertisements of stationary shop, Gingally oil. Health tonics to Gems
and Jewels Advertisements of Ayurvedic Pharmacies, Ayurvedic medicines,
Book stalls, Textiles. Ayurvedtc toilet soaps (like Chandrika and Sasindra)
,Other Toilet soaps (such as Pears, Lux, Lifebuoy, Rexona, Godrej Pyary),
Watches (Omega) , Coffee houses, Vegetable Oils (Dalda, Crown mark
gingerly oil .etc.). Lamps (ever shine lamps). Tea. Banks(such as the
Catholic Syrian Bank, South Indian Bank), Radio sets, Jeweleries, Hotels,
Films, Dairy products, Studios, Advertising Agencies and Electro plating
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works assumed prominence among the advertisements that had appeared in
the news papers and journals between 1951 -1960 .There had also been a
significant increase in the number of advertisements during this period when
compared to the earlier periods. Some of the advertisements had also started
appearing in the newspapers in multi colours. A large number of Cine
exhibitors had emerged in Kerala in the 1960s necessitating wide
advertisements for films in various forms to attract more and more one
viewers to the cinema theatres. This had led to the emergence of certain
categories of artists and specialists well versed in the designing and
publication of Cine Advertisements.
In certain regions of the State the Cine Advertisements were exhibited
by displaying such advertisements in the night on square boxes with
hurricane lamps / petromaxes put inside the boxes .People were usually
hired for carrying the same on head loads to exhibit the same in public
places and at places where people were gathered during ceremonial
occasions. Handcarts decorated with big cinema posters on either side of the
carts were usually pulled on the roads in various residential areas with the
help of hired labour to attract the attention of the people from each locality
People were informed of the arrival of a new film by means of Wall Posters
notices and beating of the drums. Persons deployed by the advertisers and
cine exhibitors to advertise the same also carried posters mounted on frames
affixed with wooden poles, accompanied by drumbeaters. Film advertising,extending for a short time span of two to three minutes also became popular
in Kerala by the end of this period.
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Advertisements of Malayalam films released in the beginning of 1960s
had in had any technological superiority when compared to the present day
advertisements. The art of advertisement assumed a new dimension due to
the gradual advancement in the spheres of processing, printing, lithography,
off set printing and photography, Entering of new artists, especially in the
field of Malayalam film advertisements had made spectacular strides in the
Malayalam advertisement scenario. Pioneer in this field was Sri.S.Appukuttan
Nair (known as S.A). The advertisements which he designed for the
Malayalam film Chemmeen had elevated him as an international fame for the
same'". He was the person who had designed the maximum number of cineadvertisements in Kerala during that period. Later, artists like Salam, Kurian,
etc., had followed his style in designing the cine advertisements. By 1971-
1980 in addition to the advertisements mentioned above, advertisement of
biscuits, health drinks, baby soaps, ayurvedic toilet Soap like Radhas and
Medimix ayurvedic soaps, paints, etc , had started appearing , During 1980s
cosmetic items had attracted the attention of the women folk through the
wide publicity given by the manufacturers of such items in the women's
magazines like Vanitha,Grehalakshmi,Women's Era, Femina and other
Malayalam magazines like Manorajyam, Manorama, Mathrubhoorn Mangalam,
Nana. Keralasabdam, Kalakaumudi and Kurnkumarn, which had been gaining
wide popularity among the households of Kerala during that period. Educated
women of Kerala who had been going through these magazines had been
tempted to buy many of the cosmetic items appeared in these magazines.
The advertisements of these products have been able to create a wide
publicity and increased consumption of these products in the State. During
1988 Video cassette recorders have started becoming popular in Kerala. Later,
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Video parlours had mushroomed in different park of the State. Consequently,
video cassette shops and video cassette recording studios
Had also emerged to cater to the needs of the people. Viewing of video
cassettes during leisure time has become one of important entertainments of
the households of Kerala during this period. There was also a high demand for
video cassettes in Kerala at that time. Several advertisers had started
exhibiting the advertisements of these products through this media along with
the video films and songs. The development in the field of Agriculture and
Industry, improved infrastructural facilities, the coming up of new educational
institutions,
Development of Banks (Branch expansion), the revival of the co-operative
sector, growth of head Centers, high rates of remittances by Keralities
working abroad the nuclear family system, etc. have made the State's
economy to a consumerism economy. The improvement in the economic
status and the aspiration for attaining a high standard of living have
necessitated the purchase of severa costly consumer non durables and
items of luxuries by a majority of the households in Kerala. The emergence
of banks and other financial institutions offering various credit schemes at
low rates of interest and easy methods of
Remittances have further increased the consumption propensity of the people
of Kerala to a great extent. All these have led to a growth in the sales of new
products, which were widely advertised through newspapers, journals, radio
and TV.
A stage has come in Kerala whereby it is realized that establishments
and products have existence only through advertisements. Consequently, cut
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throat competition among advertisers, advertising agencies and among
various media for their survival. Advertising agencies and print and electronic
media had started canvassing advertisements even without enquiring the
genuineness of advertisements and integrity of the advertisers. It had
resulted in the frequent appearance of misleading advertisements of Teak,
Manjium, and Goatl Sheep Investment Schemes. Real Estates - inside and
outside Kerala, Blade companies, etc.
During that period, a large number of individuals, craving for huge
returns for the investments, got attracted by such misleading advertisements
of innovative business ventures had lost their savings in. The various rules
and regulations formulated by the Government proved to be a failure in
safeguarding the interests of the investors in this regard. Due to the progress
in the IT sector during 1998-99, several companies and firms in Kerala,
especially those in the fields of Tourism, Ayurvedic medicines, Education,
Banking, etc., had come out with Internet based advertisements. Increase in
the circulation of newspapers, increase in the number of advertisers, the
opportunities provided by electronic media, competition due to
globalization, channel wars, added importance given to the consumers, etc.,
had enhanced the pace of developments in the advertising industry of
Kerala during that period, During 2003 several small, medium and large-
scale firms and companies started introducing various innovative advertising
strategies. These include supplying of calendars to the pilgrims with thepictures of Gods and Goddesses; offering a product of the company at free of
cost to the consumers while purchasing another product of the same
company; sponsoring of festivals; supplying beautiful cards with the
advertisement of products on the one side and with the picture of God /
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Goddess on the reverse side; sponsoring of bus tickets ;sponsoring a full
programme in TV; arranging many gift schemes in co-operation with the
leading Malayalarn dailies; arranging many gift schemes by conducting Quiz
Programmes: offering gold sovereigns and gift packages sponsored by
advertisers to the winners of different programmes on the Malayalam TV
channels; supplying fans made of papers in alluring colours and designs with
the advertisements; Advertisernent Tags, containing general financial and
personal loan schemes of private financial institutions, put or) parking
Vehicles to attract the personal attention of prospective consumers;
sponsoring and exhibiting banners and posters; etc.
Another remarkable trend in the advertising arena of Kerala, during this
period, is the publication of two issues of the same dailies and periodicals of
the two prominent Malayalam newspaper groups namely, 'Malayala
Manorama' and 'Mathrubhumi. With different contents, due to the flooding of
advertisements. These newspaper groups have brought out many more novel
strategies in their attempts in grabbing more advertisements and for
enhancing their circulation. The subscribers of Malayala Manorama' daily has
been trying their level best to attract the readers by presenting a game called
'Manorama Swarna Thambola'. The game is sponsored by Joy Alukkas Group
of Jewelers. Those who win the game are offered with gold coins and several
other items. On the other hand, the 'Mathrubhumi' daily has also been trying
their level best as a counter retaliatory measures with the same objectiveby offering a 'rain of prizes' like residential flats, cars, bikes, gold coins, silk
sarees, etc. These prizes are sponsored by Kalayan Silks, Southern
investments, V-Guard Industries, BPL, Cuticura Talcum Powder, etc.
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Top 5 advertising companies in Kerala are: -
a) Idea teams 4 adsb)Wheel-ur-adsc) Adview advertisersd)Liberty mediae) Matre advertising
As the state is developing the advertising industry will witness a steady
growth in the coming future and more innovative mediums of advertisings
would be witnessed in the near future.
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Key Features of Gold Loans
The key features of gold loans in the Indian context are described in Figure
5. With easy disbursals, few limits on cash usage, high LTVs and flexibility,
it is easy to see why gold loans are becoming more and more popular.
Figure 1
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Why NBFCs Are Growing ?
By virtue of their business model, NBFCs have grown rapidly over the last few
years as evidenced by their increase in market share. A comparison of gold
loan features across key players is highlighted in Figure 2. The key
differentiators for the NBFCs as compared to the banks and cooperatives are:
Quick loan approvals and disbursals, with minimal documentation.
Multitude of loan options with higher LTVs.
Greater accessibility due to better penetration.
Non-bankable customers are also served.
Better operating cost structure vis--vis banks.
Convenient hours of operation.
Flexibility: Provision of very small and very large loan amounts.
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Figure 2
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Loan Rate Comparison Across Categories
A comparison of interest rates charged by lenders across loan
categories is shown in Figure 7. The comparison of interest rates shows that
gold loans fetch banks higher rates as compared to home loans and car loans.
Hence, this category is being targeted aggressively by banks. However, NBFCs
have a much greater focus on gold loans and continue to provide attractive
loan features which enable them to charge higher rates, generate higher
profits and grow rapidly in a singular direction.
Figure 3
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Risks to Borrowers and Lenders
Since lenders take possession of the gold assets in a loan transaction, in case
of a theft they may not have sufficient funds to compensate all the borrowers
for their loss in its entirety. This is more important for loans placed in the
unorganized sector; banks/NBFCs usually have better security and insurance
coverage. Furthermore, financial packages cannot compensate for the
personal attachment a borrower has with the gold assets.Moreover, a sharp
decline in gold prices increases the original LTV. A lender may require an
immediate recovery of any amount that exceeds the original LTV ratio, but the
borrower may be unable to pay this amount. Restructuring of the loan may berequired in these cases. Additionally, if the value of the pledged asset declines,
a borrower may be more willing to default on the loan. This poses a serious
concentration risk to the lender, especially to the NBFCs that have a high
exposure to gold loans and lend at high LTV ratios.The increase in gold prices
over the last few years, coupled with the surge in gold loan borrowings during
this period, could create a gold bubble which could burst in the event of a
significant correction in gold prices. Banks/NBFCs with significant exposure
to gold loans could face widespread defaults, which could adversely impactthe economy.The organized sector today manages these risks through various
methods such as enhanced security, insurance cover, buying gold futures, etc.
Regulatory Environment
While there are no means of controlling the unorganized sector, the organized
sector of banks and NBFCs come under the purview of the Reserve Bank of
India (RBI) which has norms to regulate the gold loan market.NBFCs had been
traditionally disbursing gold loans through funds received from banks underpriority lending for the agricultural sector. The loans under this category
enjoy an interest rate discount of approximately 200 bps over the normal
interest rates charged by banks. But to reduce the risk in the system, the RBI
ruled in February 2011 that bank credit to NBFCs for lending against gold
jewelry will not be treated as exposure to the agricultural sector. The resulting
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higher interest rate for funds is expected to promote better lending practices
by NBFCs to creditworthy borrowers. With the continued rapid growth of the
gold loan market in India, RBI has started examininglenders, especially NBFCs,
for possible concentration risks (i.e., risks due to a sharp decline in the prices
of gold for a lender with a large exposure to gold assets pledged against theloans).All lenders are required to adhere to the KYC norms. NBFCs allegedly
have not strictly followed this regulation and hence have been under the RBIs
scanner for some time now.Currently, NBFCs gold loans are regulated by RBI.
However, some state governments require compliance with relevant state
money lending statutes. If the state governments succeed in enforcing this
regulation, the profit margin of NBFCs would be further squeezed.There have
been recent complaints regarding high interest rates and penalty rates
charged by NBFCs. This has caught the attention of regulators; any regulatorymove in this regard would impact the profit margin of NBFCs.
General terms used:
a. Brand Awareness
Brand awareness is the consumers ability to identify the brand under
different conditions as reflected by their brand recognition or recall
performance. Brand awareness measured as the consumers subjective
perception-level of the brand. High levels of brand-name recognition are those
that present the brand with a high degree of brand awareness. Brand
awareness is the first and prerequisite dimension of the entire brand
knowledge system in consumers minds, reflecting their ability to identify the
brand under different conditions: the likelihood that a brand name will come
to mind and the ease with which it does so. Brand awareness can be depicted
into brand recognition (consumers ability to confirm prior exposure to the
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brand when given the brand as cue) and brand recall (consumers ability to
retrieve the brand when given the product category, the needs fulfilled by the
category, or some other cues).Brand awareness is an important way
of promoting commodity-related products. This is because for these products,
there are very few factors that differentiate one product from its competitors.
Therefore, the product that maintains the highest brand awareness compared
to its competitors will usually get the most sales.
b. Brand Trust
Trust is an important variable affecting human relationships at all
levels (Rotter 1980). Therefore, whether concepts and theories from research
on
interpersonal relationships are used to characterize and evaluate consumer-brand
relationships, trust should be analyzed as another facet of the bond between
consumers and brands. brand trust is rooted in the result of past experience
with the brand .Deutsch (1973) defines trust as the confidence that one will
find what is desired from another, rather than what is feared. Feeling of
security held by the consumer in his/her interaction with the brand, that it isbased on the perceptions that the brand is reliable and responsible for the
interests and welfare of the consumer. This definition is consistent with the
relevant components of prior research on trust. First, brand trust involves a
willingness to put oneself at risk, be it through reliance on the promise of
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value that the brand represents. Second, it is defined by feelings of confidence
and security. Third, brand trust involves a general expectancy because it
cannot exist without some possibility of being in error. Fourth, it is related to
positive or non-negative outcomes. Fifth, it requires to make dispositional
attributions to the brand such that it is regarded as reliable, dependable, and
so on. Trust on the brand is impact based, that refers to a touch which is the
result of public interaction associated with brand (Esch et al., 2006). . Since
interactions are relationship over time. Therefore one more construct has
been included that indicates this interdependence: attachment towards the
brand. Only if a brands outcome is a satisfied customer and is trusted by thecustomer then there will be attachment that can beobservable (Berry, 2000)
c. Brand Liking
Brand liking is defined as an overall positive evaluation of a brand. In a
branding context, liking refers to the positive attitudes consumers hold in
memory towards a brand (Arnould, Price, & Zinkhan, 2005). The attitude,
which can be positive or negative, is determinant of the brand evaluation and
decision making (Aaker, 1991, 1996;Keller, 1993). Therefore, liking is crucial
in influencing consumer behavior. The claim is further supported by a study
conducted by the Advertising Research Foundation. Brand liking is a
competitive advantage since it is not connected to a specific feature of the
brand but instead represents the overall feelings towards the brand (Aaker,
1991). Studies have shown a positive relationship between the number of
brand associations and brand liking (Ibid). Therefore it is favorable to have a
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large number of brand associations in memory because it makes it easier for
the consumer to recall a particular brand node (Krishnan, 1996, p. 392). In a
cognitive neuroscience perspective liking is a sign of an underlying
emotional state (Gordon, 2001). Pioneering neurologistsBechara and Damasio
(2005) term emotions as somatic markers. Somatic markers are unconscious
emotions but can sometimes lead to consciously experienced feelings. Thus,
these somatic markers will guide peoples emotions and feelings and may
sometimes lead to unconsciously driven decision making (Ibid). The kind of
decision making where both unconscious emotions and conscious reason are
involved is termed as affective (Arnould, Price, & Zinkhan, 2005). Thisimplies that consumers make decisions based on what feels right or on a gut
feeling. This gut feeling can be identified as the aforementioned somatic
marker. That is an unconscious and embodied attitude (liking) surfacing to
consumers consciousness via a feeling that may direct liking and decision
making. This affective type of decision making shares strong similarities to
Nobel laureate Daniel Kahnemans (2006) proposed generic mode intuitive
thinking and deciding. Intuitive thinking is identified as spontaneous,
effortless and without conscious thought or computation. Further, Kahneman
and professor Amos Tverskys (1981) work mapped out bounded rationality.
Cognitive neuroscience scholars Berridge & Winkielman (2003) take this a
step further and argue that positive affective reactions can be elicited
unconsciously without a persons subjective awareness of it. Further, they
suggest that subliminally induced liking can influence later consumption
behavior (Ibid). This claim indicates the existence of completely unconscious
liking that may drive decisions which we are unaware of and suggest that
many decisions are emotionally biased and people make rather irrational
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choices. Nonetheless, studies on patients with brain damage reveal poor
decision making when conscious reasoning systems are damaged, but
unconscious emotional systems still are intact. The same occurs if emotional
systems are damaged, but reasoning systems are intact. Thus the separation
of emotion and reason is misleading. Instead of two separate systems they
should be seen as a partnership (Zaltman, 2003).
d. Purchase intentions :
Purchase intention is a plan to purchase a particular good or service in the
future.
It can be defined as a measure of the claimed level of future consumption of a
product or service by target customers who almost invariably overstate their
subsequent purchase behavior. A consumers attitude and assessment and
external factors construct consumer purchase intention, and it is a critical
factor to predict consumer behavior (Fishbein & Ajzen, 1975). Purchase
intention can measure the possibility of a consumer to buy a product, and the
higher the purchase intention is, the higher a consumers willingness is to buy
a product (Dodds, et al., 1991; Schiffman & Kanuk, 2000). Purchase intention
indicates that consumers will follow their experience, preference and externalenvironment to collect information, evaluate alternatives, and make purchase
decision (Zeithaml, 1988; Dodds et al., 1991; Schiffman & Kanuk, 2000; Yang,
2009). Chi, et al., (2009) proposed that an advertising endorsers popularity,
expertise, and attractiveness can appeal consumers eyesight in a short time
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and increase purchase intention. Anand, Holbrook, and Stephens (1988), and
Laroche, et al. (1996) also testified that advertising endorsers exposure rate
can change consumer preference and attitude and promote purchase
intention. Advertising endorser can utilize TV commercials or Newspaper or
magazine advertisings to enforce a products exposure rate and consumers
brand attitude and knowledge to elevate purchase intention (Miciak &
Shanklin, 1994). MacInnis, et al. (2002) considered that endorser marketing
can give an endorsed product a brand new image and advance consumer
purchase intention. Moreover, consumers brand attitude and purchase
intention will be higher when a product has high preference image and
familiarity (Kamins & Marks, 1991; Laroche, et al., 1996). Wang (2006) used
brand image as independent variable, product category as moderator, and
purchase intention as dependent variable and found that the higher the brand
image is, the higher the purchase intention is. Fournier (1998) discovered that
if a brand provides product functions that meet consumers need, consumers
will produce psychological associations and an irreplaceable relation with the
brand which they will subjectively maintain interaction with the brand and
raise their purchase intention accordingly. Furthermore, consumer purchase
intention comes from consumers perception on benefits and values
acquisition, and it is a important key to predict consumer purchase behavior.
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PROBLEM FORMULATION
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i. Title of the studyA study on the influence of Brand awareness, Brand trust and Brand liking
with respect to the purchase intentions of Gold Loan customers.
ii. Background of the study
Gold has long been a valued commodity, particularly in India where it isconsidered auspicious. Indian households typically have an emotional
attachment and sense of personal belonging to the gold they own, which is
usually in the form of jewelry, coins or bars. Thus, gold owned by Indian
families is rarely liquidated unless in extreme financial need consequently,
monetary value of a gold investment is rarely realized. Though gold is a
highly liquid asset, it wasnt until recently that consumers leveraged it
effectively to meet their liquidity needs. Lenders provide loans by securing
gold assets as collateral. Until a decade back, most of the lending was in the
unorganized sector through pawnbrokers and money lenders. However, this
scenario changed with the entrance of organized sector players such as banks
and non-banking finance companies (NBFCs) which now command more
than 25% of the market. But, pledging gold ornaments and other gold assets
to local pawnbrokers and money lenders to avail loans has been prevalent in
the Indian society for many decades. To add on to this, the appreciation in
value of gold has led to an explosion in the gold loan market. With everyone
wanting a piece of this action, the organized sector is challenging the large
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unorganized gold loan market dominated by pawnbrokers and
moneylenders.
iii. Significance of the studyIn recent times, the increase of buyer awareness has made buyers want to pay
for their recognizable and constructive brand. Thus, it is important for
businesses to create attraction in their brands to be in better position than
their competitors. This is evident that the consumers disseminate and always
willing to acquire a product, so here the brand awareness is always a vital
factor to manipulate the buying decisions and purchase intensions. Where
brand awareness is necessary for the purchase of the brand, the trust in the
brand is guarantee of purchase. Brand trust plays a vital role in purchase,
repurchase and switching behavior. Brand liking represents an overall liking
towards the brand. Therefore these three factors are important to a
customers purchase intentions. The study tries to understand the
relationship of these factors to the purchase intentions. Apart from this, A
study was also conducted to find the most important factor that leads to a
purchase decision among all the other standards in the gold market.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
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HYPOTHESIS AND ITS VARIABLES
Variables:
Dependent variable : Purchase intentions Independent variable : Brand awareness
Brand Trust
Brand Liking
Hypothesis:
H1 : Brand awareness is positively related to purchase intentions
H2 : Brand Trust is positively related to purchase intentions
H3 : Brand Liking is positively related to purchase intentions
BRAND AWARENESS
BRAND LIKING
BRAND TRUST
PURCHASE INTENTIONS
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Correlation Analysis
1) Brand awareness and Purchase intentions
Correlations
BA PIN
BA PearsonCorrelation
1 .649
Sig. (2-tailed) .000
N 150 150
PIN PearsonCorrelation
.649 1
Sig. (2-tailed) .000
N 150 150
Above Fig shows the simple Bivariate correlation between Purchase Intention
and Brand Awareness. The correlation analysis shows that the variable Brand
Awareness have significant and positive association (r=0.649) with Purchase
intention.
The result of the correlation analysis provides full support to hypothesis H1at
a 0.01 level of significance. The significance value i.e. (.000) indicates a high
significance level in the correlation between the variables, which means that
the variable Brand Awareness is highly correlated to Purchase Intention.
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2) Brand trust and Purchase intentions
Correlations
BT PIN
BT PearsonCorrelation
1 .578
Sig. (2-tailed) .000
N 150 150
PIN PearsonCorrelation
.578 1
Sig. (2-tailed) .000
N 150 150
Above fig shows the simple Bivariate correlation between Purchase Intention
and Brand Trust. The correlation analysis shows that the variable Brand Trust
have significant and positive association (r=0.578) with Purchase intention.
The result of the correlation analysis provides full support to hypothesis H2
at a 0.01 level of significance. The significance value i.e. (.000) indicates a high
significance level in the correlation between the variables, which means that
the variable Brand trust is highly correlated to Purchase intentions.
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3) Brand liking and Purchase Intentions
Correlations
BL PIN
BL PearsonCorrelation
1 .475**
Sig. (2-tailed) .000
N 150 150
PIN PearsonCorrelation
.475** 1
Sig. (2-tailed) .000
N 150 150
**. Correlation is significant at the 0.01level (2-tailed).
Above fig shows the simple bivariate correlation between Purchase intention
and Brand Liking. The correlation analysis shows that the variable. Brand
Liking have significant and positive association (r=0.475) with Purchase
intention.
The result of the correlation analysis provides full support to hypothesis H3at a 0.01 level of significance. The significance value i.e. (.000) indicates a high
significance level in the correlation between the variables, which means that
the variable Brand Liking is highly correlated to Purchase intentions.
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Regression
I. Effect of Brand awareness on purchase intentions
Model Summary
Model R
RSquare
Adjusted RSquare
Std. Errorof the
Estimate
1 .649a 421. .418 .70500
a. Predictors: (Constant), BA
Interpretation:
The R square value of 0.421 shown in the above table shows that only 42.1 %
of the variation in dependent variable Purchase intention is explained by the
variation in the dependent variable Brand awareness.
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II. Effect of Brand trust on purchase intentionsModel Summary
Model R R SquareAdjusted R
SquareStd. Error ofthe Estimate
1 .578a .334 .330 .73923
a. Predictors: (Constant), BT
Interpretation:
The R square value of 0.334 shown in the above table shows that only 33.4 %
of the variations in dependent variable purchase intention is explained by the
variation in the independent variable brand trust.
III. Effect of Brand liking on purchase intentions :
Model Summary
Mode
l R
R
Square
Adjusted R
Square
Std. Errorof the
Estimate1 .475 a .226 .222 .72618
a. Predictors: (Constant), BL
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Interpretation:
The R square value of 0.226 shown in the above table shows that only 22.6 %
of the variation in dependent variable purchase intention is explained by the
variation in the independent variable brand liking.
Multiple regression of Brand liking, Brand trust, Brand awareness
and Purchase intentions
Interpretation
The R square value of 0.280 shown in the above table shows that only 28.0 %
of the variation in dependent variable purchase intention is explained by the
variation in the independent variables brand liking , brand trust , brand
awareness.
Model Summary
Model R
RSquare
Adjusted RSquare
Std. Errorof the
Estimate
1 .523a .280 .278 .45963
a. Predictors: (Constant), BL, BT, BA
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ANOVAb
ModelSum of
Squares dfMean
Square F Sig.
1 Regression86.362
3 28.787 129.630 .000a
Residual 25.761 146 .222
Total 112.124 149
a. Predictors: (Constant), BL, BT, BA
b. Dependent Variable: PURCHASE INTENTION
Interpretation
ANOVA assesses the overall significance of the model. As p
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Attributes ranked in the order of importance for taking a gold
loan
Another objective of the study was to find out the most important
attribute that led the customers to choose an NBFC while taking a gold
loan. The questionnaire included 8 standard industrial attributes for
measuring the same. The results after conducting data analysis are:
Attribute Weighted mean
Disbursal time of 3
minutes
7.04
Minimum loan amount 6.7
Rate of interest 6.493
Repayment time limit 4.786
Security 4.18
Documents to be
submitted 3.1
Loan-to-value of gold
ratio 1.86
Maximum loan amount 1.56
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Interpretation:
From the above table it is verified that the loan disbursal time of
3 minutes has the highest weighted mean 7.04. Therefore it is the most
important attribute that the customers consider while taking a gold
loan. This is followed by Minimum Loan amount with a weighted mean
of 6.7.
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FINDINGS AND
RECOMMENDATIONS
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Findings:
Brand Awareness have significant and positive association(r=0.649) with Purchase intention. Hypothesis H1 (a) is therefore
accepted. Brand awareness is positively related to purchase
intentions.
Brand Trust have significant and positive association (r=0.578)with Purchase intention. Hypothesis H2 (a) is therefore accepted.
Brand trust is therefore positively related to purchase intentions.
Brand Liking have significant and positive association (r=0.475)with Purchase intention. Hypothesis H3 (a) is therefore accepted.Brand liking is therefore positively related to purchase intentions.
For Brand awareness the R square value is 0.421 which means42.1% of the variation in dependent variable Purchase intention
is explained by the variation in the dependent variable Brandawareness. Brand awareness is therefore positively related to
purchase intentions.
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For Brand trust the R square value is 0.334 which means that33.4% of the variation in dependent variable Purchase intention
is explained by the variation in the dependent variable Brand
trust.
For Brand liking the R square value is 0.226 which means that22.6% of the variation in dependent variable Purchase intention
is explained by the variation in the dependent variable Brand
liking.
The attribute loan disbursal time of 3 minutes ranks as the mostimportant attribute that the customers consider while taking a
gold loan . This is followed by the attribute Minimum loan
amount.
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Recommendations:
From the study it was found out that Brand awarenesshighly influenced the customers purchase decisions.The
more visible you are, greater is the brand awareness
.Therefore the companies can take steps to make its brand
more visible through options like In-branch branding.
It was also found that Brand liking is also positivelyassociated with future purchase decisions . Therefore the
companies can take steps to improvise on the factors that
contribute to brand liking Brand actions and self brand
similarity. Pleasant personal interaction of the employees
can contribute to a large extend in this case. The loan disbursal time of 3 minutes is the unique selling
proposition of Muthoot Fincorp. This is the main reason
why customers are attracted to thecompany. With this the
company can penetrate into regional markets where pawn
brokers dominate the gold loan market.
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CONCLUSION
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Conclusion
Gold loans are among the newest class of assets which have seen rapid
growth in securitization. Gold loans have become a basis for creation of
new financial products such as loans for purchase of gold wherein gold
is purchased on the date of the loan and held as a pledge until the
equated monthly instalments are paid. This study investigates the
relationship between brand awareness, brand trust and brand liking
with the purchase intentions of the customers. This study notes that the
brand awareness strongly influences the purchase intentions of the
customers. Higher the brand awareness stronger is the purchase
intentions. The study also brings light into the most important
attributes that influence the purchase intentions. Since more than 75%of the gold loan market is still with the unorganized segment , the
organized segment has a huge potential for growth through
cannibalization of the unorganized segment.
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Bibliography :
1. Naresh K. Malhotra and Satyabhushan Dash, Marketing Research: AnApplied Orientation, Seventh Edition, Pearson Education.
2. Philip Kotler, Kevin Keller, Abraham Koshy and Mithileshwar,Marketing Management, Thirteeenth Edition, Pearson Publication.
3. Kothari C. R, Research Methodology- Methods and Techniques, NewDelhi, by New Age International Publishers Ltd.
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www.scholar.google.com
www.ebsco.com www.marketingresearch.com www.jiimsjournal.org www.group-edge.comhttp://articles.economictimes.indiatimes.com/2011-06-
03/personal-finance/29617389_1_gold-loan-goldprices-loan-size
http://www.neytri.com/gold-loans-what-you-must-know/http://thegoldwatcher.blogspot.com/2011/05/indian-gold-loan-
market-expanding.html
http://www.scholar.google.com/http://www.ebsco.com/http://www.marketingresearch.com/http://www.jiimsjournal.org/http://www.group-edge.com/http://www.group-edge.com/http://www.jiimsjournal.org/http://www.marketingresearch.com/http://www.ebsco.com/http://www.scholar.google.com/ -
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http://articles.economictimes.indiatimes.com/2011-09-06/personal-finance/30119263_1_gold-loans-nbfcs-personal-
loan
http://www.thehindu.com/business/Economy/article2376650.ecehttp://www.muthootfinance.com/services/gold-loan.htmlhttp://www.statebankoftravancore.com/Interest_Rate_Loan.htmhttp://www.southindianbank.com/interestRate/interestRateDetail
s.aspx?irtID=7
http://www.southindianbank.com/interestRate/interestRateDetails.aspx?irtID=8
http://www.iob.in/Rates_at_a_glance.aspxhttp://indian-bank.com/rate_loan_personal_base.phphttp://indian-bank.com/rate_loan_agri_base.phphttp://www.muthootfincorp.com/faq_goldloan.htmlhttp://www.muthootfincorp.com/faq_smartplus.htmlhttp://www.zerohedge.com/news/russian-central-bank-offer-
gold-backed-loans-or-why-spam-standardcoming-end
http://www.thehindubusinessline.com/industry-and-economy/banking/article2711896.ece
http://www.thehindubusinessline.com/industry-and-economy/banking/article2711896.ecehttp://www.thehindubusinessline.com/industry-and-economy/banking/article2711896.ecehttp://www.thehindubusinessline.com/industry-and-economy/banking/article2711896.ecehttp://www.thehindubusinessline.com/industry-and-economy/banking/article2711896.ecehttp://www.thehindubusinessline.com/industry-and-economy/banking/article2711896.ecehttp://www.thehindubusinessline.com/industry-and-economy/banking/article2711896.ece -
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ANNEXURE
QUESTIONNAIRE
Strongly
DisagreeDisagree Neutral Agree
Strongly
Agree
1I am aware about the benefits of takinga gold loan
2
The first name that comes to my mindwhile hearing gold loan is your goldloan provider
3I know about my gold loan providerthrough Advertisements
4Compared to its competitors, Iappreciate my gol