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A STUDY ON THE EFFECT OF ADVERTISING ON CONSUMER BUYING

BEHAVIOUR

A PROJECT REPORT

Submitted by

Madhan L

09AA17

In partial fulfilment of the requirements of Anna University for

the award of the degree of

Master of Business Administration

JULY 2010


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TABLE OF CONTENTS

Chapter

NoTITLE Page No

ACKNOWLEDGEMENT I

TABLE OF CONTENTS Ii

LIST OF TABLES Iv

LIST OF FIGURES Vi

LIST OF ABBREVIATIONS Vii

EXECUTIVE SUMMARY Ix

1 INTRODUCTION 1

1.1 Introduction to the Topic 1

1.2 Background of the study 10

2 THEORETICAL FRAME WORK & REVIEW OF LITERATURE

(Sections and Sub-sections to be included) 14

3 RESEARCH METHODOLOGY (Sections and Sub-sections to be

included) 24

4 DATA ANALYSIS AND INFERENCE (Sections and Sub-sections tobe included) 30

5 FINDINGS OF THE STUDY (Sections and Sub-sections to be

included) 69

6 CONCLUSION 74

REFERENCES Xi

APPENDICES Xiv

EXECUTIVE SUMMARY

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Advertising has become the most influencing factor in determining the purchase decision

made by a consumer. Companies promote the advantages and features of their product

through advertising. Therefore it has been important for companies to find the reach of

their advertising strategy in order to make improvements for the further strategies. The

paper focuses on finding the impact of advertising on the buying behaviour of consumer

towards the product, the Counselling Guru.

Counselling Guru, a guide for students appearing for the Tamilnadu engineering

admissions is a product cum service offered by Guru Vinayana Academy. The academy

was formed by a team of alumni from College of engineering, Guindy. The book focuseson providing the necessary information on engineering colleges and trend analysis,

decision making factors required for selecting a college in the engineering counselling.

The product was promoted to people through direct selling and advertising. Though the

book did not make enough sales it made some sales and advertising played a major part

in it. To find the amount of impact advertising has done on sales, a questionnaire was

designed to get the feedback from the people who purchased the books.

The inputs from the questionnaire answered by the consumers were analysed andinterpreted using the SPSS package. Various tests were done on the data and results were

found. The results revealed the reach of advertising and also the powerful medium of

advertising for the book. Also it was found that people preferred more to word-of-mouth

advertising than to any other medium when it comes to the purchase of an education-

related book. Further research and current results may help the company in formulating a

new and efficient advertising strategy to reach the mass customers by using lesser

resources.

INTRODUCTION

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Advertising plays the key role in attracting customers towards a product. Most of the

established companies believe that the customers rely on their products because of the

continued promotions. Companies like Apple, IBM etc., have huge customer yet then

they do not stop their advertising activities because advertising communicates the people

that the company still exists and make products.

Advertising is a form of communication intended to persuade the audience (viewers,

readers or listeners) to purchase or take some action upon products, ideals, or services. It

includes the name of a product or service and how that product or service could benefit

the consumer, to persuade a target market to purchase or to consume that particular

brand.

It all started with Adam and Eve when both advertised each other between themselves.

The invention of paper, media and internet has taken advertising to a new height. The

established companies tie up with leading advertising agencies such as JWT, Ogilvy &

Mather, and Rediffusion for their promotional activities. They want to keep their existing

customers with themselves and add new customers. In 2007, spending on advertising was

estimated at more than $150 billion in the United States and $385 billion worldwide.

Such is the importance of advertising in todays world.

INTRODUCTION TO THE TITLE

When a firm plans to introduce a new product it has to carefully design the promotional

plan to reflect consumers preferences and to develop a well-thought-out marketing

strategy. Advertising is one of the most important marketing activities to accompany the

products introduction. New companies cannot spend much on advertising because it

affects the profits. Hence they have to carefully study the market to find the powerful and

efficient medium and strategy for advertising to reach the mass audience; therebyconverting them to potential customers. The paper studies the impact of advertising on

the purchase decision of the consumer on a new product released by a new organisation.

BACKGROUND OF STUDY

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Types of advertising

Virtually any medium can be used for advertising. Commercial advertising media caninclude Wall Paintings, Billboards, Radio, Cinema, Television adverts, Web Banners,

Newspapers, Internet and many more.

Television advertising / Music in advertising

Infomercials

Radio advertising

Online advertising

Product placements Press advertising

Mobile billboard advertising

In-store advertising

Celebrity branding and many more.

About the Industry

Printing is losing to television and the Internet in other countries whereas in India the

print media industry is huge and expected to grow at a 13% cumulative annual growth

rate over the next five years.With readership (222 million adult readers) growing at a fast

pace, the industry is estimated to almost double from its current size of US$ 3.2 billion to

US$ 5.80 billion by 2011. This growth is being attributed to two distinct factors; Indian

government liberalizing laws pertaining to foreign investment in Indian publishing

companies and the Indian economys fast growth in English-educated middle-class

citizens with increased disposable incomes.

Global media companies are now eyeing the Indian market and are actively seeking entry

through collaborations and joint ventures. A number of Indian versions of international

5
http://en.wikipedia.org/wiki/Muralhttp://en.wikipedia.org/wiki/Muralhttp://en.wikipedia.org/wiki/Billboardshttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Television_advertisementhttp://en.wikipedia.org/wiki/Television_advertisementhttp://en.wikipedia.org/wiki/Music_in_advertisinghttp://en.wikipedia.org/wiki/Infomercialhttp://en.wikipedia.org/wiki/Infomercialhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Online_advertisinghttp://en.wikipedia.org/wiki/Online_advertisinghttp://en.wikipedia.org/wiki/Product_placementhttp://en.wikipedia.org/wiki/Product_placementhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Celebrity_brandinghttp://en.wikipedia.org/wiki/Celebrity_brandinghttp://en.wikipedia.org/wiki/Billboardshttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Television_advertisementhttp://en.wikipedia.org/wiki/Music_in_advertisinghttp://en.wikipedia.org/wiki/Infomercialhttp://en.wikipedia.org/wiki/Radio_advertisementhttp://en.wikipedia.org/wiki/Online_advertisinghttp://en.wikipedia.org/wiki/Product_placementhttp://en.wikipedia.org/wiki/Mobile_billboardhttp://en.wikipedia.org/wiki/Celebrity_brandinghttp://en.wikipedia.org/wiki/Mural


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publications (franchises of the original) have entered the Indian market, including Elle,

Cosmopolitan, Scientific American, Good Housekeeping and Maxim.

Growth in Indias print and publishing sector is assured in the years to come due to the

growth in the literacy levels in both urban and rural India. Laws to protect intellectual

property (IP) rights are also now in place in India. Although enforcement of the laws at

local levels needs drastic improvements, IP theft in India is much lower as compared to

other emerging markets.

Market Demand

The vibrant Indian print industry, comprised of newspaper and magazine publishing,

generates a turnover of around US$ 3.20 billion annually and ranks third in the world in

number of English publications per year (after the United States and United Kingdom).

According to estimates in a report published by the Federation of Indian Chambers of

Commerce & Industry (FICCI) and PricewaterhouseCoopers, this industry is projected to

grow from its present size to around US$ 5.80 billion by 2011.

Including several new publications released in recent years, both the newspaper and

magazine industries are expected to show a healthy growth rate as provided in the tablebelow.

Newspaper Magazine Total print media

Reach (# of readers) 204 million 68 million 222 million

Size current (2006)

in US$

2.79 billion 0.32 billion 3.20 billion

Size estimated

(2011) in US$

5.04 billion 0.76 billion 5.80 billion

Market Data

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The National Readership Study 2006 (NRS 2006), conducted annually in India by the

National Readership Studies Council, is the largest survey of its kind in the world.

The reach of the press medium (dailies and magazines combined) has increased

from 216 million to 222 million between 2005 and 2006.

As a proportion, however, press reach has stabilized in urban India at 45

percent and in rural India at 19 percent.

Dailies have driven growth in the press medium, with their reach increasing

when measured as a proportion of all individuals aged 12 years and above.

Magazines have declined in reach from 9 percent to 8 percent over the last one

year.

Time spent reading has increased in urban India (from 41 to 44 minutes daily)

and decreased slightly in rural India (from 36 to 35 minutes daily).

Literacy as measured in the NRS 2006 has risen slightly to 71 percent, giving

an additional small boost to publishers.

Press (dailies and magazines combined) added 7 million readers over the last

year.

Apart from news and politics, sports is the topic of most interest among

readers, and is followed by coverage of films and television soap operas.

Growth Drivers

Various factors were contributing to the growth of industry and the major factors which

include;

Higher literacy levels- At present, Indian print industry have its reach to over 220m

people, whereas newspaper is read only by 27% of people of India, as compared to the

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average 50% globally. In India, the rate of literacy has increased to 71.1% in 2006, as

compared to 69.9% in 2005. Where literacy rate in rural segment has touched 64.8%,

urban literacy has increased to 85.3%.

Lower cover prices - Newspaper had higher cover charges earlier but cut-throat

competition has led the companies to reduce their cover prices so as to popularize their

sales. Therefore, the companies have started selling out dailies, including popular English

ones, for as low as Re1 or Rs 2 to experience growth in their sales.

Higher ad spends- Print industry accounts for 48% of the total Rs 137.5 bn advertising

industry and plays a crucial role in it. In spite of being a vital industry, the ad spend in

India is just 0.4% of GDP, where as in China, it is about 0.5% and 1.3% in the US.

Nonetheless, factors such as growing interest of international brands in domestic markets

and rising consumerism has made it contribute more in the ad segment.

"As a matter of fact, there is no single newspaper circulated nationally. However, India

has entitled as the second largest platform for newspapers with 88.9 m copies sold out

each day, next to China which makes sale of nearly 98.7 m copies/day.

ForeignInvestment

A big number of Indian print players is confined to their local regions and would likely to

refrain from entering new territories due to lack of funds. The relaxation in foreign

investment regulations in 2002 has given the industry a leverage to expand further.

Currently, newspapers and periodicals are permitted for 26% foreign direct investment

(FDI) and non-news publications have permission of 100% foreign.

Indian Print Industry's Current Status

Nearly 160,000 Printing Presses are being operated across the country.

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Employees more than 1.6 million work force.

Printing academic bodies include 18 Printing Engineering Colleges, Several diploma

schools and many print training institutions.

Produce over 2000 graduates in printing every year.

Figure 1: Revenue of printing and publishing industry over the years 2003-2010

Future of the Industry

The factors such as increasing literacy, entering global brands in the country, increasing

consumerism and sector's opening to foreign investors would lead to further growth in

print media. Also, widening newspaper companies and their spreading across newer

segments would have a positive impact on its growth.

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About the company

The research was carried out for a product of Guru Vinayana Academy, a newly formed

organisation established by a team of alumni from college of engineering, Guindy.

Guru Vinayana Academy is a non-profit motive institute run by Guru Vinayana

Educational Trust [GVET] (Registered under Indian Trust Act). This institute is

functioning at Vedasandur, Dindigul District, Tamilnadu from October 2009, with motive

of empowering the rural students in the field of education.

The academy aims to help deserving and poor students reach their career goals in their

pursuit to become the better citizens of the country. The academy also offers excellent

training programmes, high quality educational consultation & services customized for the

needs or rural students.

As a mass scale rural upliftment initiative, one of the wings of the academy works on theEngineering Awareness Programme for budding engineering students and their parents

all over Tamilnadu.

Company Offerings

Guru Vinayana Academy offers the following Programmes/Services

Engineering Awareness Programme

Personal Development Programme for Rural Students

Career Guidance & Scholarship Programme for Higher Secondary Rural

Students

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Computer Training Programme for Rural Youth & Women

Internet & Advanced Communications Services

About the product

Counselling Guru is basically a guide for aspirants of Tamilnadu engineering admissions

commonly called as TNEA.

In the recent years, the interest towards engineering has increased among student

community in Tamilnadu. Also in the last 10 years, the number of engineering colleges

has increased approximately from 300 to 650+. In this scenario finding information about

all the colleges and selecting the right branch in right college has become a tough task for

any engineering aspirant. It is not easy, to come up with a right decision for one's career,

based on the vast amount of information available in the internet and through other

sources.

The book provides complete information about different engineering branches, colleges,

and the counselling process followed in Tamilnadu Engineering Admissions. The book

has been written without any commercial interest & to help only the student community.

It has information about

1. Brief description about different engineering branches

2. Complete detail about all the engineering colleges in TN

3. Branch wise and overall engineering college rankings

4. For ones rank, data about seat availability in different engineering colleges

5. Educational loan and other useful information

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NEED FOR THE STUDY

The career counselling institutes find it difficult to promote their brand names and in

India there is no popular brand in the field of career guidance. Specifically, the book

selling is done only at the level of personal selling and is still has to reach the level of

advertising. The evaluation of advertisement tools used for advertising a book will

provide a right mix of advertisement mediums. It will be helpful for the institutes to

know the various tools of advertisement and that they can plan their strategies

accordingly. The research result can indicate the areas the companies should focus to

advertise their products, which is a book in the study. The book publishers are eager to

know the level of reach of their products, the books for the process of further

improvement.

SCOPE OF THE STUDY

Further this analysis helps the book publishing industry and the career guidance institutes

The knowledge of consumer about the brand selections

Understanding the factors that influence the buying behaviour of the products

The right marketing mix

OBJECTIVES OF THE STUDY

To study the effect of advertising on the buying behaviour of consumers

To find the perception of students towards the advertisements by book industries

and career guidance institutes

To find out the significant medium of advertising to reach the students or the

targets of book publishers and career guidance institutes.

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To find out the factors influencing the purchase decision

LIMITATIONS

The sample size of 50 for the product consumers is very small and it demands

further research before generalizing the results.

The research has been limited to the career guidance institutes and not to the

entire printing and publishing industry or the entire educational institutes.

Though we examine consumer buying behaviour towards the advertised

products we focus only on a particular product, the counselling guru.

The target group was limited to few places and it could be extended.

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LITERATURE REVIEW

The review of literature identified several articles discussing and clarifying about the

advertising and consumer purchase behaviour.

Cotton and Babb (1978) reported results from a study that measured the response of

consumers to promotional deals on dairy products. The percentage increase in

consumption during a period was applied as the standard to measure the responsiveness.

Different types of sales promotion were considered. They found that promotional deals

resulted in substantial increases in the level of purchase.

The study performed on advertising and consumer brand selection by Jothi(2010) explain

how advertising create awareness on a product or brand. The study was based on a survey

of 200 randomly selected consumers of tooth paste in Chennai, India. It examined the

role played by advertising in influencing consumers selection for Colgate tooth paste.

The results revealed that various socio-economic factors of the respondents were not

equally influenced by advertising in their preference for the brand, further it revealed that

their brand awareness were influenced by the advertisement, particularly in TV

advertisement. Almost 80% of the respondents were aware of the product due to

advertisements. The result further added that the major reasons advanced for preference

are its affluent quality and fascinating advertisement.

Marketing and Research team (MART) did a study on the use of folk media for effective

communication and advertising. The research found that the use of folk media has been

useful in several ways. The famous campaign on family planning could be easily

described through folk theatres, street shows and puppet shows. It also found that there is

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increasing acceptance of new means of advertising and is showing signs of change in

advertising mix used by companies to advertise in rural areas.

The findings of Media Guide 2008 provide useful information on rural market

communication:

TV is the most widespread medium of communication even in rural India, but

still it is accessible only to 40% of this population.

People in rural India prefer radio (20%) to media. Tamilnadu tops among the

states with the maximum reach (40%) while Andhra Pradesh has the lowest

(3%).

Print media reaches to 15% of the rural population. Print media is the most

effective communication tool in Kerala as it touches 62% of rural population

while it is least effective in Madhya Pradesh (4%).

Cinema has the low reach in rural areas for advertisement purposes. It reaches

only 5% of the rural population. On a state-wise check, it is the highest in Andhra

Pradesh while lowest (1%) in Haryana, Gujarat, Bihar, Chattisgarh, Orissa, Uttar

Pradesh and West Bengal.

Subramaniam(2002) in his article Thinking Ads in local lingo explained the importance

of advertising in regional language. According to Shripad Nadkarni, VP-Marketing,

Coca-Cola India-By communicating through the regional language, a marketer can not

only establish immediate connect with his target customer, but also relate to his cultural

sensibilities. Language advertising is based on regional insights. Given the diversity of

country, it is important connect locally to ensure that we do full justice to communicating

the brands message to the customer.

The research on effect of advertising on the price sensitivity of consumer by Comanor

and Wilson (1974) clears that advertising leads to product differentiation which in turn

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leads to price sensitivity. Nelson (1974) extended the research and found that advertising

increases competition among companies since it provides information to consumers

which make them price-sensitive.

There is a huge market for consumers and there is always a great demand for large

variety of goods and services, especially as consumers differ from one another in that of

age, gender, income, education level, and tastes. Moreover, the relationships between

different consumers, as well as their contact with other elements of the world

surroundings, affect their choice of products, services, and companies (Kotler et al.

2005).The reason why consumers buy what they do is often deeply rooted in their minds,

consequently consumers do not truly know what affects their purchases as ninety-five

percent of the thought, emotion, and learning [that drive our purchases] occur in the

unconscious mind- that is without our awareness (Armstrong et al. 2005, p. 143).

Marketers are targeting their ads primarily at teenagers. In order to gain teenagers

attention more effectively, advertising campaigns must be honest, have clear messages,

and use humor. Moreover, teenagers are likely to switch brand preference quicker than

any other age group, as they have a high need to be accepted by their friends (Blackwell

et al. 2001). Finally, teenagers are easier targets, because they have grown up in a

culture of pure consumerism. Because of this, they are way more tuned into media

because there is so much more media to be tuned into(Bush et al. 2004, p. 109).

Traditional hierarchy-of-effects models of advertising state that advertising exposure

leads to cognitions, such as memory about the ad, the product and/or the brand; which in

turn leads to attitudes, such as product liking and attitude toward possible purchase;

which in the end leads to behaviours, such as buying the advertised product (Albion &

Farris, 1981).

The study on new products done by Eskin and Baron (1977) examined the impact of

advertising and suggested that more advertising might attract additional consumers to

new products. Mansfield (1961), Bass (1969) and many others have proposed models for

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new product advertising. These models were based on the concept that the diffusion of

the new product is not within the control of the firm and is mostly generated by word-of-

mouth and social pressure to adopt the new product.

RESEARCH METHODOLOGY

Research Design

The research design is descriptive in nature.

Method of Data Collection

Questionnaire method is used for primary data collection. Each respondent (investor) is

given a questionnaire to be filled up.

Secondary data was gathered from books, journals and websites for review of literature.

Sampling Method

Simple Random Sampling method is used for this study.

Sample Size

The sample size is restricted to just 100 respondents

Tools of Analysis

SPSS is the software package used for analysis and interpretation of the variables.

The tests performed were: Frequency Analysis, Chi Square and ANOVA.

Chi-Square Test:

X2 = (O-E) 2

E

Where O indicates the observed frequency

E indicates the expected frequency

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The formula to calculate the expected frequency is,

Ei = Row total i x Column total i

Grand total

DATA ANALYSIS AND INTERPRETATION

The questionnaire was given to 50 people to respond for various questions. The

respondents were the people who bought the book. The data from the questionnaire is

analyzed using various tests to find out the impact of advertising.

Frequency Analysis

i) Age of the respondents:

The frequency analysis of the variable age indicates that most of the respondents were of

the age less than 20. 60% of the respondents were below age 20 because they were

supposed to be the students who bought the book. About 16% of the respondents werebetween the age of 20 and 40 and the remaining 24% were above 40 years of age.

ii) Place:

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Of the respondents 54% were from urban and 46% were from semi-urban

areas. The respondents of the urban and semi-urban areas were from

Coimbatore, Chennai, Erode and Namakkal. Only 10% of the respondents

were from rural areas.

iii) Awareness of the product:

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The bar chart clearly indicates that 78% of the respondents were highly influenced by the

advertisements to purchase the book. Around 14% were neither influenced and the

remaining 8% were influenced little. The purchase decision of the 90% of consumers is

very much influenced by the advertisements.

v) First saw the advertisement:

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The pie chart clearly explains that around 44% of the consumers have seen the

advertisement first in the television ads and scrolls. 26% of the respondents have seen it

first in internet and 22% have seen the advertisements first in paper insert. Only 8% saw

the advertisements in notices.

vi) Information in the book:

It is evident from the chart that 60% of the respondents totally agree that they prefer the

book for the information available in the nook. 36% agree that they like the information

and remaining 4% neither agree nor disagree.

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Crosstab Analysis

i) Age of the respondent * Influence of ads on the purchase decision:

Count

Influence of ads on the purchase decision

Very much A lot Neither Little Total

Age of the respondent less than 20 7 17 5 1 30

between 20 and 40 2 5 1 0 8

greater than 30 3 5 3 1 12

Total 12 27 9 2 50

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Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 1.906a 6 .928

Likelihood Ratio 2.097 6 .911

Linear-by-LinearAssociation

.265 1 .607

N of Valid Cases 50

a. 8 cells (66.7%) have expected count less than 5. The minimum

expected count is .32.

H0: Age of the respondent and influence of ads on the purchase decision are

not related

H1: Age of the respondent and influence of ads on the purchase decision are

related

The Pearson chi square significance value is greater than 0.05. Hence null hypothesis is

accepted. Age of the respondent and influence of ads on the purchase decision are not

related.

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The chart indicates that people of all ages were influenced very much by the

advertisements for the purchase decision. Since most of the respondents were of the age

less than 20 the chart shows that they were highly influenced compared to the

respondents of other ages.

ii) Age of the respondent * information in the book:

H0: Age of the respondent and information in the book are not related

H1: Age of the respondent and information in the book are related

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Count

Information in the book

neither Agree Agree totally Total

Age of the respondent less than 20 2 9 19 30

between 20 and 40 0 5 3 8

greater than 30 0 4 8 12

Total 2 18 30 50

Chi-Square Tests

Value df Asymp. Sig. (2-sided)



Linear-by-Linear

Association

.099 1 .754

N of Valid Cases 50

a. 6 cells (66.7%) have expected count less than 5. Theminimum expected count is .32.

The Pearson chi square significance value is greater than 0.05. Hence null hypothesis is

accepted. Age of the respondent and information in the book are not related.

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The chart explains that regardless of the age of the respondents the book was preferred by

most of the consumers for the information available in the book. The consumers preferred

the book for the vast amount of information based on the engineering colleges, the trend

analysis and the deciding factors available in the book. The respondents of all ages liked

the content of the book.

iii) Place where the respondent resides * Noticing TV ads

H0: Place where the respondent resides and noticing TV ads are not related

H1: Place where the respondent resides and noticing TV ads are related

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Count

Noticing Tv ads

very much Much neither Total

Place where therespondent resides

Rural 2 3 0 5

Semi-Urban 9 5 3 17

Urban 12 15 1 28

Total 23 23 4 50

Chi-Square Tests

Value df Asymp. Sig. (2-sided)



Linear-by-LinearAssociation

.007 1 .931

N of Valid Cases 50

a. 5 cells (55.6%) have expected count less than 5. The minimumexpected count is .40.

The Pearson chi square significance value is greater than 0.05(0.296). Hence null

hypothesis is accepted. Place where the respondent resides in and noticing TV ads are not

related.

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The chart indicates that regardless of the place where they reside in, either it be urban or

semi-urban or rural the noticing of television advertisements is very common among the

consumers. The respondents from different places gave more importance to watching ads

such as TV commercials or scrolls in the television compared to other medium of

advertising.

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iv) Place where the respondent resides * noticing e-advertising:

H0: Place where the respondent resides and noticing e-advertising are not

related

H1: Place where the respondent resides and noticing e-advertising are related

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Count

Noticing e-advertising

very much much neither Little

Place where the respondentresides

Rural 1 0 0 3

Semi-Urban 2 6 4 5

Urban 4 12 8 3

Total 7 18 12 11

Count


very little Total


Rural 1 5

Semi-Urban 0 17

Urban 1 28

Total 2 50

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)



Linear-by-Linear 3.825 1 .051

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Count




Rural 1 0 0 3

Semi-Urban 2 6 4 5

Urban 4 12 8 3

Total 7 18 12 11

Count


very little Total


Rural 1 5

Semi-Urban 0 17

Urban 1 28

Total 2 50

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)



N of Valid Cases 50

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Count




Rural 1 0 0 3

Semi-Urban 2 6 4 5

Urban 4 12 8 3

Total 7 18 12 11

Count


very little Total


Rural 1 5

Semi-Urban 0 17

Urban 1 28

Total 2 50

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)



a. 11 cells (73.3%) have expected count less than 5. The minimum

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The Pearson chi square significance value is greater than 0.05(0.111). Hence null

hypothesis is accepted. Place where the respondent resides in and noticing e-

advertisements are not related. Though there is no much significance in the chi-square

significant value there seem to be little relation between the place and noticing e-

advertisements.

The bar chart explains that most of the urban respondents notice advertisements in the

internet and e-mails and in semi-urban cities also there is good noticing of internet

advertisements. The respondents from rural areas have very little exposure to internet and

so there is less noticing of e-advertising.

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Preferred Medium of Advertising

The one sample t-test performed on the different mediums preferred for advertising

provided the mean rank for the variables.

One-Sample Test

Test Value = 0

T df Sig. (2-tailed) Mean Difference

Wall Painting 44.954 49 .000 7.880

TV ads and TV scrolls 15.000 49 .000 1.500

FM Radio Ads 23.764 49 .000 5.240

Poster Advertisements 26.476 49 .000 5.860

Newspaper Ads 11.822 49 .000 2.740

Paper inserts 22.207 49 .000 4.740

Banner ads 28.424 49 .000 5.620

Advertisement in internet 9.361 49 .000 3.020

Ads on buses/media vehicle 51.770 49 .000 8.080

According to the table the preferred rank from 1 to 9 (1 as most preferred and 9 as least

preferred) for the different mediums are

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1. TV ads/Scrolls

2. Newspaper Ads

3. Internet advertisements

4. Paper inserts

5. FM radio ads

6. Banner ads

7. Poster advertisements

8. Wall Paintings

9. Advertisement in vehicles

From the results of the t-test it is evident that the advertisements in television are the

most preferred medium by the consumers. Newspaper and internet medium is the second

and third most preferred respectively. Wall paintings and advertisements on buses and

other media vehicles are the least preferred medium of advertising.

Preference Factor in the book:

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Mean Difference

Information in the book 1.560

Price of the book 3.429

Company that owns the book 2.420

Advertisement about the book 3.700

Authors who prepared the book 2.200

Referred vby circle of friends 3.060

The above table provides the factors that consumers prefer in a book when they purchase.

For the product, Counselling guru the respondents preferred the information in the book

as the most likely and the authors who wrote the book as the second most preferred.

FINDINGS OF THE STUDY

The analysis of the data from the questionnaire led to the following findings:

Consumers believe equally to the word-of-mouth for purchase of the book as that

of advertising. Students seem to refer their friends and relatives before purchase

of books. They are influenced easily towards purchase when someone gives a

good opinion about a book.

The advertisements play a vital role in influencing the purchase decision of the

consumer. Attractive advertisements tend to make people buy the books.

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The advertisement for the Counselling Guru was seen mostly in the television

and internet. The consumers were aware of the product through the

advertisements that appeared as scrolls in TV. The internet advertisements have

also attracted customers to the product.

More than 80% of the customers preferred the book because of the information

available in the book.

The advertisements have greater influence on the purchase decision of the people

regardless of the age. Also the preference of book based on the information was

regardless of age factor.

The noticing of television advertisements was similar in the rural, semi-urban and

urban areas. Also the internet advertisements were noticed equally among the

urban and rural areas but this is because of the fewer respondents from rural

areas. Hence, the noticing of internet advertisements is more in the urban and

semi-urban areas and very low in the rural areas.

Television is the most preferred medium of advertising for a book.

Newspaper and internet are the second and third most preferred medium foradvertising a book respectively.

The advertisements of books through wall paintings and media vehicles are not

preferred.

Paper inserts and advertisements in FM can attract few customers towards the

product.

The most influencing factor in a book to be purchased was found to be the

information available and also the authors who wrote it.

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CONCLUSION

The findings have clearly stated that advertising has lot of impact in making the purchase

decision. Advertisements have the power to attract customers towards the product by

explaining the advantages of the product. Any company has to focus on advertising to

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attract customers in case of new product and to improve sales in case of established

companies.

Companies have to focus on the planning of the strategy and proper market study before

advertising a product. In this case, television advertisements were the most preferred and

the advertisements of the book were first viewed in the television. So, low cost

advertisements such as TV scrolls and very few commercial ads can educate good

amount of audience and attract potential customers towards the product.

When advertising a book, the company and the advertising agency has to mainly focus on

explaining the information available in the book and the authors who prepared the book.

Customers look for these two factors more than price of the book. Preferred advertising

mediums can be selected to attract the target customers rather than focusing on all the

possible mediums and wasting the resources. The book attracted almost 90% of the

customers only through television and internet. So by avoiding the least preferred or least

noticed mediums advertisements can efficiently reach the customers through fewer ways.

Word-of-mouth played a key role in equally attracting the customers to the product.

Around 50% of the customers were aware of the book through others references and

their opinions have even influenced people to buy the books. For advertising a book, the

company has to focus equally on word-of-mouth advertising.

effect on sales

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