impact on advertising & offer-toothpaste buying
TRANSCRIPT
Volume:01, Number:05, Sep-2011 Page 11 www.theinternationaljournal.org
IMPACT ON ADVERTISING & OFFER-TOOTHPASTE BUYING
G.Vani
Asst professor
Acharya Institute of Technology,
Solladevanahalli, Bangalore-90.
M.Ganesh Babu
Assistant Manager, ICICI Bank, Bangalore.
129/2,AGBG Layout
Chikkabanavara
Hesaraghatta main road
Bangalore-90
Dr.N.Panchanatham
Professor & Dept Head,
Dept of Business Administration,
Annamalai University,
Chidambaram, Tamilnadu.
ABSTRACT
Purpose – The main purpose of this paper is to examine the advertising and offer impact on
buying toothpaste in Bangalore city.
Design/methodology/approach – The researcher developed a descriptive design for
measuring the advertising media and offer impact in consumer’s purchase intention. The
researchers collected information from 485 respondents in Bangalore city through survey
method with the help of using questionnaire. Frequency analysis and multiple regression
analysis was used to analyse the responses gave by respondents.
Findings –The result found in this study was, television and internet advertisement impact is
high when compare to other medium. In case of offer, the impact is average for all the sales
promotion tools. Demographic factors like age, income, and residence are highly related with
advertisement offer.
Research limitations/implications – The sampling method used in this study was convenience
sample, which is the main limitation of this research. It is difficult to analyse the mind set of
consumers through questionnaire whether they are giving true information or not, and there
was a lack of experimental control for the questionnaire investigation, so the quality of
questionnaire cannot be ensured.
Practical implications – This research should help firms determine the best advertising media
and offer to reach and retain the consumers.
Key words: Advertising, Media, Offer, Sales promotion tools, Toothpaste buying
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INTRODUCTION
Consumer behaviour “is the study of the processes involved when individuals or groups
select, purchase, use, or dispose or products, services, ideas, or experiences to satisfy needs
and desires” (Solomon, 1995, p. 5).
Advertising
Advertising has become a part of our everyday life. Daily however we are seeing many
advertisements in TV, newspaper, magazine, radio, Internet etc. and we are affected by those
advertisement consciously or unconsciously. Today, advertising is a multi-billion industry,
employing hundreds of thousands of people and affecting billions of people’s lives
worldwide. Yet, seeing as advertising clutter has increased tremendously and is more intense
than ever, it is vital that companies differentiate themselves from competitors by creating
even more powerful, entertaining and innovative advertisement messages, as well as
sponsoring different events. Advertising is fascinating and provocative. Advertising creates
customer awareness of the product and builds positive psychological associations that can
enhance the buyer satisfaction. Consumer’s interest is provoked and sustained in the product.
The purpose of advertising is to make potential buyers respond more favourably to the firm’s
offering. Advertising provides information to customers creates and modifies their desires
and provides reasons for preferring a particular product. Captivating and persuasive
advertisements create wants through passive compulsion, which makes the consumers to buy
the product. Advertising creates demand, and thereby, accelerates the growth in the gross
domestic product. It also helps society by improving competition, lowering prices,
encouraging more product choices, supporting the media and providing information.
Advertising seems to go beyond merely selling products or ideas and can shape social trends
and attitudes in powerful ways. However, advertising has been accused of harming society on
the ground that it creates an unnecessary hype for the products and also manifests wants for
superfluous products and services (Ammani, 2008).Selection of advertising media is essential
for understanding the people nature and influencing them to buy a product. An understanding
of consumers’ characteristics and the media they consume most heavily are valuable when
directing selected promotional themes to target markets (Darden & Ashton, 1975).Khan,
Chang & Horridge, 1992) indicated the selection of media is based on the characteristics of
media, the demographics and psychographics of the target market, and the characteristics of
the product.
Sales promotion offer
The greatest challenge ever faced by Companies is holding the Market Share & value and it is
always a strenuous exercise for which most of the time the promotional tools are used. There
is no specific game rule available for usage of tools. The reason is: Each promotional tool has
its own unique characteristics.iSales Promotion is a marketing tool is used as a key ingredient
in marketing campaigns, consists of a diverse collection of incentive tools, mostly short term,
designed to stimulate quicker(or) greater purchase of particular products (or) services by
consumers (or) the trade. iiThe benefit of sales promotion is huge to manufacturers &
marketers. Farris and Quelch cite a number of sales-promotion benefits flowing to
manufacturers and consumers. iii
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Kotler et al (2010), sales promotion main objective is to create product awareness, several
sales promotion techniques are highly effective in exposing customers to products for the first
time and can serve as key promotional components in the early stages of new product
introduction. Additionally ,as part of the effort to build product awareness ,several sales
promotion techniques possess the added advantage of capturing customer information at the
time of exposure to the promotion .In this way sales promotion can act as an effective
customer information gathering tool(i.e. sales lead generation),which can then be used as part
of follow-up marketing efforts.
STATEMENT OF THE PROBLEM
The organizations are facing problem with selecting advertising media and offer to reach the
consumer successfully. Selecting the right media to target the right customer is an essential
step in advertising. When compare to developed countries the awareness and usage of
toothpaste is less in India. So creating the awareness is an essential step to increase the
consumption of toothpaste. Advertising play a vital role in creating awareness, but the firm
have to understand the demographic, psychographic, cultural, technical, economic and
political factors for choosing the right media. Sales promotion is an essential tool to increase
the consumption, awareness, new product launch, brand switching etc. The firm select the
sales promotion tool based on the above said reason. Selecting the right offer at right time
(for example seasonable offer) is an important task to reach the consumer. So this study is
helpful to choose the right media and offer to attract the toothpaste buyers.
LITERATURE REVIEW
This chapter reviewed major contributions of the existing literature. The objective of this
chapter was to provide readers an overview of previous scholars who directly and indirectly
related to the advertising and offer impact on toothpaste buying.
Vani,Ganesh babu & Dr.Panchanatham(2011),conducted a study on Toothpaste buying
behaviour in Bangalore city .Based on this study majority of the respondents influenced by
advertisement for buying toothpaste.
Double click’s July 2005 study was conducted with an Internet panel of consumers to assess
media influences on buying. The researcher selected 2,110 adults who were asked about their
purchasing habits regarding ten categories of products: automotive, consumer electronics,
credit cards and banking, home improvement products, investments and mortgages, movies,
personal care / home care, prescription drugs, telecom services, and travel. The result found
was, Corporate Web sites for the purchase of autos, travel, telecom services, credit cards,
electronics, home products, and mortgages; TV advertising for the choice of movies; and
Print advertising for personal care / home care products.
Narayan, Obregon, and Uppal (1998) used a laboratory setting to assess the recall and
recognition of online text advertisement versus the same advertisement in a newspaper. The
online and print ads were both embedded in news stories. While no difference in recollection
appeared for the news stories in each medium, people who were exposed to the printed
newspaper ad had higher recognition scores for its advertising content than those who
received the online version.
In measuring the affective impact of a magazine ad, Calder and Malthouse at Northwestern’s
Media Management Centre created metrics to assess a reader’s experience with printed media
(Calder & Malthouse, 2004).They developed measures to assess the media user’s qualitative
experience with magazines and whether this experience related to the advertising in it. For
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example, Calder and Malthouse found that people regard time spent reading magazines as a
luxury, and they read magazines both for personal quiet time and to learn about new things.
Kim Vasey (2004), Media edge recently won media-weeks media plan of the year award for
best use of radio” for a weather –triggered effort on behalf of Campbell’s chicken noodle
soup. A three week radio campaign heightened awareness of impending weather and “spoke”
to the consumer about the benefit of Campbell’s. The campaign resulted in a significant lift in
sales volume. The resonance of the ad copy clearly indicates that radio has the ability to
target and reach specific consumer segments and influence purchasing behaviour.
Krugman (1965) proved to be a catalyst in the advertisement of the low-involvement
perspective. He discussed the television advertising is a low involvement medium because
consumers are not actively engaged in television and the content of television advertising is
trivial. In contrast, print media is more involving. The pace of exposure is within the readers
control and the reader has more opportunity to reflect on the advertising and to make
connections between products or brands in the advertisement and his or her own beliefs and
values. He concluded that beliefs about a brand changed and led to purchase decision without
very little thought and deliberation in low-involvement cases (i.e. television advertising).
The most important characteristic of the Internet was that it supports a whole new channel for
the exchange of information and knowledge. It showed that sellers and customers could
benefit from an exchange of information and knowledge (Kambin and Van Heck,
1998).Recently the survey conducted by XMOS to analyse the advertising impact on Colgate
Total toothpaste. The XMOS study measured online advertising alongside offline advertising
.The objective of this campaign was to increase purchase intent. Colgate's data showed that it
cost 23% more to encourage consumer purchase using TV alone compared to using TV in
combination with online.
According to Shimp (2003), sales promotion refers to any incentive used by a manufacturer
to induce the trade (wholesalers, retailers, or other channel members) and/or consumers to
buy a brand and to encourage the sales force to aggressively sell it. Retailers also use
promotional incentives to encourage desired behaviors’ from consumers. Sales promotion is
more short-term oriented and capable of influencing behavior. Totten & Block (1994) stated
that the term sales promotion refers to many kinds of selling incentives and techniques
intended to produce immediate or short-term sales effects. Typical sales promotion includes
coupons, samples, in-pack premiums, and price-offs, displays, and so on.
Bonus pack offer creating awareness in some condition. Factory bonus pack according to Lee
(1963) is used to increase consumer trial of the brand. Larger package size and accompanying
advertising of the offer tended to make the promotion noticeable (Gardener & Trivedi 1998).
Purchasing a product based on discount offer is based on the depth of the discount offer. For
many packaged groceries shapers form expectations about the depth-of-discounts (Winer
1986; Latin and Bucklin 1989).These expectations originate from historically observed
discounting patterns and are used as a yardstick to evaluate the attractiveness of promotion
activities actually observed in the store environment. The better the observed depth-of-
discount is relative to the anticipated deal, the more purchases will be accelerated by the
consumer.
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Coupon offer is useful for the consumers to try the product in a first time. Coupons have been
used to produce trial (Robinson & Carmack 1997). According to Cook (2003), coupons are
easily understood by the consumer and can be highly useful for trial purchase. Gilbert and
Jackaria (2002) concurring to the popularity of coupon reported that coupon is ranked last as
the promotional least widely used by consumers and least influence on product trial.
G.vani,Ganesh ,Dr.N.Panchanatham(2010),discussed the different offers including saver pack
offer. Colgate having the number one position in the toothpaste market, for maintaining the
same position, the company providing different offers to the customers. Saver pack offer is
important tool in toothpaste market. Free gift offer is influencing more in buying toothpaste
when compare to other sales promotion tool. G.vani, Ganesh, Dr.N.Panchanatham (2010),
conducted a study on toothpaste buying behaviour in Bangalore city. Based on this study
most of the respondents influenced by free gift offer then extra quantity then discount. So free
gift offer influencing more for decision making. G.vani,Ganesh
,Dr.N.Panchanatham(2009),discussed the promotion methods used by companies for
targeting children. Rasna conducted slogan contest for the kids between the age group of 4-10
years. This is one of the sales promotion methods to increase sales.
SCOPE OF THE STUDY
This study analysing the impact of different media like print, audio and audio visual media,
different offer like saver pack, free extra quantity, price discount, coupon, free gift and
contest impact in buying toothpaste. In case of low involvement goods (toothpaste) which
medium and offer is suitable to communicate the information and attract the consumer? .This
study providing answer to the above question. It is also helpful for the companies to
understand the consumers. This study is also useful for the researchers for further study.
OBJECTIVES OF THE STUDY
Primary objective
The main purpose of this study is to analyse the impact of advertising on toothpaste buying
To analyse the impact of offer in buying toothpaste
Secondary objectivs
To find out the magazine, radio, television and internet advertisement impact on buying
toothpaste
To analyse the impact of free extra quantity, price discount, coupon, saver pack, free gift and
contest offer in buying toothpaste
RESEARCH METHODOLOGY
The research design adopted in this study is descriptive design. The study aims to explore all
dimensions of advertising impact on buying toothpaste. The researcher selected 485
respondents from Bangalore city based on their convenience. Questionnaire method was used
by the researchers for collecting information from respondents. The researchers used both
primary (questionnaire) and secondary (journals, magazine, books and website) sources for
collecting data. The tools used here was Frequency analysis, and multiple regression analysis.
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ANALYSIS
Table 1: Frequency analysis-Demographic factors
Demographic Factors Frequency No of Respondents (N) Percentage (%)
Sex Male 236 48.7
Female 249 51.3
Total 485 100.0
Age Group Below 20 yrs 24 4.9
21 to 25 yrs 231 47.6
26 to 30 yrs 68 14.0
31-35 yrs 38 7.8
36 -40 yrs 77 15.9
41&above 47 9.8
Total 485 100.0
Education Illiterate 6 1.2
Primary education 64 13.2
Graduation 141 29.1
Post graduate 274 56.5
Total 485 100.0
Marital Status
Married 240 49.5
Unmarried 236 48.7
Widower 6 1.2
Others 3 0.6
Total 485 100.0
Nature of job Private employee 158 32.6
Government employee 15 3.1
Own business 63 13.0
Agriculture 2 0.4
Student 144 29.7
Home maker 97 20.0
Job seekers 6 1.2
Total 485 100.0
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Based on the above table 48.7% of the respondents are male and 51.3% of the respondents are
female. In age group 4.9% of the respondents are coming under below 20 years, 47.6 %
coming under 21 to 25 years, 14% coming under 26 to 30, 7.8% coming under 31-35 years,
15.9% coming under 36-40 years and 9.8% coming under 41&above age. In education, 1.2%
respondents are illiterate, 13.2% respondents completed primary education, 29.1% respondents
are graduates and 56.5% respondents are post graduates. In case of marital status ,49.5% are un
married,48.7% are married,1.2% are widower and 0.6 are coming under others category. In
nature of job 32.6 are private employees, 3.1% are government employees, 13% are doing own
business,0.4% respondents are agriculturalist,29.7% are students,20% are home maker and 1.2
% respondents are job seekers. In case of family income,26.6% respondents income below
25000,40.2% respondents income between 25001 to 50000,13.8% respondents income
between 50001 to 75000,5.8% respondents income in-between 750001 to 100000.3.7%
respondents income above 100000 and 9.9% respondents are not ready to provide their family
income. In social class 2.3% are lower class, 82.5% are middle class, 10.5% belongs to upper
class and 4.7% are don’t know the social class. In case of residence 76.7% are staying in
metropolitan, 15.3% are staying in municipality, 5.25 are staying in town panchayat and 2.8%
are staying in village.
Family Monthly Income <Rs.25,000 129 26.6
Rs.25,001 to 50,000 195 40.2
Rs. 50,001 to 75,000 67 13.8
Rs. 75,001 to 1,00,000 28 5.8
>Rs. 1,00,000 18 3.7
Others 48 9.9
Total 100 485
Social class Lower class 11 2.3
Middle class 400 82.5
Upper class 51 10.5
Do not know 23 4.7
Total 485 100.0
Current residence Metropolitan 372 76.7
Municipality 74 15.3
Town Panchayat 25 5.2
Village 14 2.8
Total 485 100.0
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Table 2: Frequency analysis-Advertisement & offer
SDA-Strongly disagree , DA-Disagree, NAND-Neither agree Nor disagree, A-Agree,
SA-Strongly agree
Based on the above table 3.7% of the respondents strongly disagree with advertisement, 21.6%
of the respondents disagree with advertisement, 44.5% of the respondents neither agree nor
disagree with advertisement, 22.9% of the respondents agree with advertisement and 7.2% of
the respondents strongly agree with advertisement. In case of newspaper ad, 2.9% strongly
disagree with newspaper ad, 29.1% disagree with newspaper ad, 49.9% neutral with newspaper
ad, 15.7% agree with newspaper ad and 2.5% strongly disagree with newspaper ad. In
magazine ad, 3.5% strongly disagree with magazine ad, 26.2% disagree with magazine ad,
48% neutral with magazine ad, 20.4% agree with magazine ad and 1.9% strongly agree with
magazine ad. In radio ad, 4.1% strongly disagree with radio ad, 23.1% disagree with radio ad,
49.7% neutral with radio ad, 21.9% agree with radio ad and 1.2% strongly agree with radio ad.
In television ad, 1.2% strongly agree with television ad, 14.4% disagree with television ad,
47.6% neutral with television ad, 30.7% agree with television ad, and 6.0% strongly agree with
television ad. In internet ad 0.4% strongly disagree with internet ad, 18.4% disagree with
internet ad, 48.5% neutral with internet ad, 30.3% agree with internet ad and 2.5% strongly
agree with internet ad.
In case of sales promotion 4.5% of the respondents strongly disagree with offer, 34.8% of the
respondents disagree with offer, 43.5% of the respondents neither agree nor disagree with
offer, 15.7% of the respondents agree with offer and 1.4% of the respondents strongly agree
with offer. In case of free extra quantity offer, 6.8% strongly disagree with free extra quantity,
43.5% disagree with free extra quantity, 36.1% neutral with free extra quantity, 13.2% agree
with free extra quantity and 0.4% strongly disagree with free extra quantity. In price discount,
8.2% strongly disagree with price discount, 35.1% disagree with price discount, 44.1% neutral
Factors Frequency Percentage
SDA DA NDNA A SA SDA DA NDNA A SA
Advertisement 18 105 216 111 35 3.7 21.6 44.5 22.9 7.2
Newspaper 14 141 242 76 12 2.9 29.1 49.9 15.7 2.5
Magazine 17 127 233 99 9 3.5 26.2 48.0 20.4 1.9
Radio 20 112 241 106 6 4.1 23.1 49.7 21.9 1.2
Television 6 70 231 149 29 1.2 14.4 47.6 30.7 6.0
Internet 2 89 235 147 12 0.4 18.4 48.5 30.3 2.5
Offer 22 169 211 76 7 4.5 34.8 43.5 15.7 1.4
Free extra quantity 33 211 175 64 2 6.8 43.5 36.1 13.2 0.4
Price discount 40 170 214 59 2 8.2 35.1 44.1 12.2 0.4
Coupon offer 29 179 206 66 5 6.0 36.9 42.5 13.6 1.0
Saver pack offer 12 91 272 95 15 2.5 18.8 56.1 19.6 3.1
Free gift offer 26 131 251 73 4 5.4 27.0 51.8 15.1 0.8
Contest 26 120 235 94 10 5.4 24.7 48.5 19.4 2.1
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with price discount, 12.2% agree with price discount and 0.4% strongly agree with price
discount. In coupon offer, 6.0% strongly disagree with coupon offer, 36.9% disagree with
coupon offer, 42.5% neutral with coupon offer, 13.6 agree with coupon offer and 1.0%
strongly agree with coupon offer. In saver pack offer, 2.5% strongly disagree with saver pack
offer , 18.8% disagree with saver pack offer ,56.1% neutral with saver pack offer ,19.6% agree
with saver pack offer , and 3.1% strongly agree with saver pack offer .In free gift offer 5.4%
strongly disagree with free gift offer , 27.0% disagree with free gift offer,51.8% neutral with
free gift offer ,15.1% agree with free gift offer and 0.8% strongly agree with free gift offer. In
contest offer 5.4% strongly disagree with contest offer, 24.7% disagree with contest offer,
48.5% neutral with contest offer, 19.4% agree with contest offer and 2.1% strongly agree with
contest offer.
Table 3: Multiple regression analysis results
Un standardized coefficients
Independent factors Dependent factor
Overall interest
Information about
brand
colour
Ingredients
Involvement
Shelf arrangement
Quality
Taste
Innovation
Package
R value
R square value
F value
P value(significant
level)
0.009(1%
significance)
In case of age and advertisement offer, media like newspaper, magazine, and radio have a
high relationship with age when compare to television and internet. Radio (0.162) is highly
related with age then newspaper (0.098) then magazine (0.076). In case of offer, coupon
offer, saver pack offer, free gift offer and contest are highly related with age then free extra
quantity and price discount. Free gift offer (0.178) is highly related with age then coupon
offer (0.172) then contest (0.051) then saver pack offer (0.035).In case of income, radio,
newspaper, television ads are highly related with income then internet and magazine.
Television advertisement (0.121) is highly related with income, then newspaper (0.107), then
radio (0.056).In offer, free extra quantity, price discount, free gift offer highly related with
income then contest, coupon and saver pack offer. Free gift offer (0.120) is highly related
with income then price discount (0.096), then free extra quantity (0.046).In case of residence
advertising medium like internet, television and magazine are highly related with residence
then newspaper, radio and advertisement. Magazine is highly related with residence then
internet then television. In case of offer, free extra quantity, price discount, coupon offer, free
gift offer related with residence then contest and saver pack offer. Free extra quantity offer
(0.105) is highly related with residence then price discount (.047) then coupon offer (0.032)
then free gift offer (0.003).
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FINDINGS
Based on frequency analysis
Based on this study most of the respondents are female (51.3%) then male, 47.6% are age
between 21 to 25 years,56.5% are post graduates,47.6% are unmarried,35.7% are employees,
40.2% respondents income in-between 25000 to 50000,82.5% are middle class people and
76.7% are staying in metropolitan city. So demographic factors have a certain impact in
buying product. This is supported by the following review. An individual difference affecting
the decision making is the demographic mark-up of the consumer. Engel, Blackwell& Minard
(1995) wrote that demographic characteristics can be related to search activities. Engel et al
(1995) found relationship between age, income, education and search activities.
In case of advertisement most of the respondents are neutral with their opinion, in case of
agree and disagree respondents are almost nearer in percentage, and respondents opinion for
strongly agree and strongly disagree are only meagre percentage. So advertisement impact for
buying toothpaste is not very high. This is supported by the following review. Shizue kishi,
conducted a study in Tokyo, Japan related to effects of advertising on consumer decision
making. The main aim of this study was to analyse how advertising influences consumer
purchase decision making in situations where consumers are exposed to or search for
information other than advertising. Suigimoto, and the Nikkee advertising research institute
conducted a three-years research project. They used detailed personal interviews and time-
series mail surveys for collecting information. The two studies revealed that the effect of
advertising on consumer decision making for PC and automobile is less
In newspaper advertisement most of the respondents are neutral opinion then disagree then
agree then strongly agree and strongly disagree. So respondents are not highly attracted with
newspaper ad. In case of magazine ad most of the respondents are neutral with their opinion,
respondents are nearer in percentage regarding disagree and agree, respondents opinion are
meagre in case of strongly agree and strongly disagree. This is supported by the following
review. Soldow & Principe (1981) that reader involvement will correlate negatively with
subsequent recall and recognition of the accompanying advertisement and with other
measures of advertisement impact.
In case of radio advertisement, most of the respondents are neutral opinion then disagree then
disagree then agree then strongly disagree then strongly agree. So respondents are somewhat
attracted with radio ad. This is supported by following illustration. Kim Vasey, Consumer life
style has changed today, but radio remains an integral part of our lives. Radio reaches us in
our homes, in our cars and at work. We turn to it for entertainment, information, news and
sports. It is always current (there are never any reruns) and there is a format for just about
every discernable taste.
In Television ad most of the respondents are neutral in their opinion, respondents are agree
with television ad almost nearer to neutral opinion then disagree then strongly agree then
strongly disagree. Based on this study majority of the respondents influenced by television
advertisement for buying toothpaste. This is supported by the following review. Television
impact is high in purchasing toothpaste. G.vani, Ganesh, Dr.N.Panchanatham (2010),
conducted a study on toothpaste buying behaviour in Bangalore city. Based on this study
Volume:01, Number:05, Sep-2011 Page 21 www.theinternationaljournal.org
majority of the respondents influenced by advertisement for buying toothpaste. In recent
circumstances technology plays an important role in decision making; especially in
advertising field the technology role is very high. Television advertisement inducing the
consumer mind for decision making, especially kid’s advertisement for toothpaste
influencing the kids to influence the parents to buy a particular brand.
In case of internet ad, most of the respondents are neutral in their opinion, respondents are
agree with internet ad almost nearer to neutral opinion then disagree then strongly agree then
strongly disagree. Recently the survey conducted by XMOS to analyse the advertising impact
on Colgate Total toothpaste. The XMOS study measured online advertising alongside offline
advertising .The objective of this campaign was to increase purchase intent. The purchase
intent increased with internet ad when compare to traditional medium.
In case of offer and different offers like free extra quantity offer, price discount, coupon offer,
saver pack offer, free gift offer and contest, most of the respondents are neutral with their
opinion, respondents are disagree with different offer almost equal to neutral, only less
respondents accepted sales promotion with agree statement, only meagre respondents
strongly agreed and strongly disagreed sales promotion. In case of toothpaste buying offer is
not influencing so much for buying product, but in the case of dairy products the
consumption increased because of offer. Cotton and Babb (1978) reported results from a
study that measured the response of consumers to promotional deals for dairy products. The
percentage increase in consumption during a deal period was applied as the standard to
measure the responsiveness.
Based on Multiple regression
There is significant relationship between advertising offer and age. So based on this age
factor influencing the consumer to select media and offer. In this case media like newspaper,
magazine and radio highly influencing the consumer. In offer, free gift, coupon, contest and
saver pack influencing the consumer more for decision. This is supported by the following
review. Foxman et al. (1989) argue that age is a relevant variable as older children are
presumed to be more knowledgeable about products and family needs. This is mainly due to
their increase in cognitive development (Piaget, 1972). However, findings on whether
product knowledge has a positive impact on teenagers’ influence differ (Beatty and Talpade,
1994).
There is significant relationship between advertisement offer and income. In this case media
like radio, newspaper and television, offer like free gift, price discount and free extra quantity
offer highly related with advertisement offer. This is explained with following study. Based
on economic theory, it would be expected that households with lower income (and therefore
more limited shopping budgets) would be more price promotion responsive, resulting in a
negative relationship between income and promotion response (e.g., Urbany, Dickson, and
Kalapurakal 1996). On the other hand, households with higher income are less restricted in
their budget, which increases the probability of acting on impulse (e.g.,Inman and Winer
1998), and therefore in-store promotion response. Bawa and Gosh (1999) concluded that
higher income households spend more during a shopping trip, which, in turn, would result in
a larger probability to buy on promotion.
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There is significant relationship between advertisement offer and current residence. In this
case media like magazine, television and internet, offer like free gift, free extra quantity,
coupon, price discount are highly related with advertising offer.This is explained by
following illustration. The demographic profile is turning extremely favourable towards
sustaining growth in economic activity and in consumption, with almost 550 million
consumers across urban and rural India in the 15+ age group (excluding the 250 million or so
who are still, unfortunately, below the poverty line).
Of these, about 400 million are in rural India while the remaining live in urban India. Of the
latter, about 100 million reside in the top 100 cities alone, and there is a very positive
geographic broad-basing of this consuming class. As the dependency ratio continues to drop
in India (in marked contrast with the developed economies where it continues to rise, creating
the spectre of social challenges in the decades to come), and as more Indians get educated,
their consumption aspirations will continue to change very markedly.
CONCLUSION&RECOMMENDATION
Companies concentrate in analyzing the people tendency thoroughly to select media and offer
to retain the consumer. This study revealed that advertising and offer impact is average level
in Bangalore city. Television impact is high in purchasing toothpaste product, internet ad also
influencing consumer to buy toothpaste, but in the case of offer, the impact is less in buying
toothpaste. But based on regression analysis result media and offer selection based on age,
residence and income is highly significant. So understanding the demographic factors is an
essential tool in selecting media and offer. Based on this study advertising and offer is also an
essential factor to influence consumer.
The impact of media and offer not only based on demographic, cultural factors. It also
depends on the psychographics of consumers and involvement of consumers. Apart from
advertising and offer, other factors like brand image, company image, store image, past
experience, benefit of a product etc influencing consumer to take decision. So the firm have
to analyze all these factors and find out the best suitable tools for promoting toothpaste in
India. Technology innovation is an important factor in consumer buying decision. The 1990s
have borne witness to dramatic shifts in the marketplace triggered by sharp changes in the
lifestyle patterns of the past and present and the radical revolution in the technology. Time
tested concepts on brand loyalty and Mass Marketing, are being turned on their heads as they
fail to gauge the behaviour of new generation customers. With the inevitability of change
looming large over the horizon, Indian companies must learn from their western
counterparts; not only to identify the sources, timing and direction of the changes likely to
affect India, but also the new competencies and perspective that will enable them to respond
to these changes, comprehensively and effectively. Companies offering Product or Services
will need to understand this new face of the customers.
LIMITATION
Our study suffers from some limitation, which could be avenues for further research. This
study failed to talk about the psychographics of the consumer. Understanding psychographics
of the consumer is an important tool to understand the inner feelings, and attitude of the
consumer. The changing demographic profile of the population in terms of education,
Volume:01, Number:05, Sep-2011 Page 23 www.theinternationaljournal.org
income, size of family and so on, are important by what will be more substantive in days to
come will be the Psychographics of customers that is how they feel, think or behave.
Marketers will have to constantly monitor and understand the underlying Psychographics to
map their respective industries are moving and decide what needs to be done, by way of
adding value that motivates customers to buy the company’s products and influence the
future industry structure. The study also excluded the extrinsic factors like brand image,
innovation, involvement, store image, company image etc. One more problem in this study is
questionnaire. Most of the questions are closed ended, it limits the respondents answer.
SCOPE FOR FURTHER RESEARCH
This is useful for the researchers for further study in the area like advertising appeal,
advertising campaign and endorser in ad. It’s also useful for testing other low involvement
goods based on this result. The company and researcher can check the reliability of the test in
other cities. To extend the study with different sales promotion technique is also possible.
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