santy dissertation

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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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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


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


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


N 150 150


.578 1


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


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**


N 150 150


.475** 1


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


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:


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:


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


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.

Websites:

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