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[TITLE OF SYNOPSIS]

“To Study the Impact of Advertisement of consumer

durable goods on Consumer Brand Preference at
Jalandhar”

Submitted to Lovely Professional University

Submitted by: Supervisor:

Devesh Chauhan Reg no.10900171 A-05 Mr. Hitesh Jhanji
Rohit Ranjan Reg no 10903042 A-07
Imran Hussan Reg no10902893 A-20
Chandan Kumar Singh Reg no 10903162 A -27

DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA
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“To Study the Impact of Advertisement of consumer

durable goods on Consumer Brand Preference at
Jalandhar”
Author(s): Rohit Ranjan, Chandan Kumar singh, Devesh Chauhan and Imran Hussan.
Keywords: Advertisement, Brand Preference, Celebrity endorsement.
Article type: Research paper.

ABSTRACT

It is well known fact that people in India do not just watch their favorite sport, film or serial,
many are watching to see the commercials. Regardless of how good the game was, there are
usually a few ads that people talk about the next day. But one thing that people may not think
about is how trustworthy an advertisement may be and, at a higher level, how much trust one
can, or cannot, place in an industry's advertisements. In Indian scenario it is proved that
advertisements from Consumer Durables are most effective.
As we know these days Durables companies are advertising their product so much on televisions
and are spending so much money on the celebrities to endorse their products. For increasing the
sale of their product they are taking film stars, cricket stars in their advertisements of their
products which are again very costly. Therefore we took this as opportunity to study different
aspects of Advertisements, their impact on consumer perception etc.

INTRODUCTION

Preference (or "taste") is a concept, used in the social sciences, particularly economics. It
assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of
these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they
provide. More generally, it can be seen as a source of motivation. In cognitive sciences,
individual preferences enable choice of objectives/goals.
The study of the consumer preference not only focuses on how and why consumers make buying
decision, but also focuses on how and why consumers make choice of the goods they buy and
their evaluation of these goods after use. So for success of any company or product promotion it
is very necessary to depart its concentration towards consumer preference.
A consumer is an individual who purchase or has the capacity to purchase goods and services
offered for sale by marketing institutions in order to satisfy personal or household needs, wants
or desires. According to a statement made by Mahatma Gandhi, ‘consumer refers to the
following, “A consumer is the most important visitor on our premises. He is not dependent on us.
We are dependent on him. He is not an outsider to our business. He is part of it. We are not doing
him a favor by serving him. He is doing us a favor by giving us an opportunity to do so”.
Consumer durables involve any type of products purchased by consumers that are manufactured
for long-term use. As opposed to many goods that are intended for consumption in the short
term, consumer durable are intended to endure regular usage for several years or longer before
replacement of the consumer product is required. Just about every household will contain at least
a few items that may be properly considered to be of a consumer durable nature.
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OBJECTIVE OF THE STUDY

 To study the impact of the Advertisements on the brand preference of consumers.

 To find out the consumer preference regarding the most effective media for
Advertisements.
 To study the impact of the celebrity endorsement on the consumer buying behaviour.

SCOPE OF THE STUDY

This project helps in projecting the impact of advertisement on customer’s brand preference.
When the customer’s while selecting a product or service what is the role play by advertisement.
We very well know that advertisement is not only use for awareness it also play a important role
in brand preference. It also shows how celebrity endorsement impact customers. The scope of
study for management student gets to apply all their theoretical knowledge in the market. During
study they solve the particular problem given by the market and come to know the various things
practically.

REVIEW OF LITERATURE

(Grewal Rajdeep et al 2004) In an attempt to bring consumer psychology theories into research
on the timing of repurchase of consumer durables, the authors suggest that attitude functions
(knowledge, value expressive, social adjective, and utilitarian) can help explain and predict inter
purchase intervals. Adopting an interactions perspective, the authors propose that the effect of
the attitude functions is contingent on contextual factors, which they theorize as the nature of the
product (along public-private and luxury-necessity dimensions) and the nature of the decision
(forced or unforced purchase decision). Hypothesis testing is facilitated by survey data on actual
purchase decisions and hazard models that incorporate individual heterogeneity. The results
support the suggested role of attitude functions in explaining and predicting inter purchase
intervals and suggest means by which managers can position their products to shorten inter
purchase intervals. Fareena Sultan and Russell S. Winer, In this paper, consumers' time
preferences for technology-driven consumer durable innovations are examined. We calculate
from survey data rates of time preference for products and product attributes. Several
propositions related to these constructs are empirically tested. The results show that, over
subjects, the product rate is different from the economic discount rate which captures time
preferences for money that product rates of time preference vary by individual, by product and
over time, and that attribute level rates of time preference may vary by attribute. Dillon, et al.
(1997). Investigated the factors affecting the consumer behaviour on durable goods and foot
items. The sample consisted 150 females 75 from rural and the anther 75 urban areas from. The
information about this study pointed the rural respondents given the advertisement through radio
primary importance and the other media like posters and magazines were least affected, where as
the urban respondents were affected more by television and magazines. Various studies have
been conducted on the effects of television advertisement on the Marketing operations and
consumer behaviour. Amanda Spry et al, (2011) This research examines the impact of celebrity
credibility on consumer-based equity of the endorsed brand. The mediating role of brand
credibility and the moderating role of the type of branding (parent versus sub-brand) employed
by the endorsed brand on the endorser credibility-brand equity relationship are also examined.
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Zhou Dongsheng(2003) The purpose of this paper is to investigate the impact of short-term
advertising on long-term sales of consumer durables and nondurables in China by using cross-
sectional time-series television advertising and sales data. As China hastens its transformation to
a market economy, its advertising industry has witnessed one of the fastest growth rates in the
world, averaging 35% annually, far more than the country's GDP growth rate and the global
advertising growth rate (Hong Kong Trade Development Council 1998; Zhou, Zhang, and
Vertinsky 2002).

HYPOTHESIS FORMULATION
It is basically a presumption which Researcher uses when they do research.
For objective one
Null: - There is a no significant effect of the Advertisements on the brand preference of
consumers.
Alternative:- There is a significant effect of the Advertisements on the brand preference of
consumers.
For objective two:
Null: - There is no difference in the consumer preference regarding the most effective media for
Advertisements.
Alternative: - There is a difference in the consumer preference regarding the most effective
media for Advertisements.
For objective three:
Null: - There is no significant effect of the celebrity endorsement on the consumer buying
behaviour.
Alternative: - There is a significant effect of the celebrity endorsement on the consumer buying
behavior.

RESEARC METHODOLOGY

The study was conducted in several stages. In the first stage, related literature review was done to
understand the problem, concept, and past studies. Various articles, books, and Journals were
referred. In the second stage research design was made. Descriptive research design used for the
study. After that we frame questionnaire to find out the various dimension which influencing
consumer preference. A Pilot survey was conducted 30 respondents were interviewed in under to
check the validity of the questionnaire and product selection. After the pilot study data was
collected form 100 respondents form jalandhar city. In the third stage data was classified and
tabulated in order to get information in a fruitful manner.

DATA ANALYSIS

The SPSS software was used for analysis the data collected for this study. The Microsoft excel
software was also used to make some basic computation. The most examine tool are Percentage,
Pie Chart and Chi square test.
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FINDINGS OF THE STUDY

The present study included three dimensions for the research that is consumer preference,
consumer buying behavior and celebrity impact on consumer while selection the durable goods.
The analysis of data gives that, LG is most preferred brand followed by Samsung and Sony. The
most liked medium of Advertisements is television followed by Internet and Radio media.
People like television more than others. There is a great impact of the advertisements on the
consumers as 68% respondents replied they do recall the advertisements of their brands. This
recall helps them in decision making while making a purchase. People remember different
aspects of the advertisements. The most remembered aspect by respondents is Celebrity,
followed by Punch line and Theme. The main four factors are most influencing the consumer
preference while selecting the consumer durable goods. These are following Celebrity, Offers,
Quality of the Product, and Opinion of friends about the product.

CONCLUSION
As we know that today market is very competitive. There is cut throat competition in the
Consumer Durables industry mainly between the three big giant’s i.e. LG, SAMSUNG and
Sony. Both are striving very hard for their market share. Therefore it becomes very hard for the
companies to retain their customers. It is also evident that companies spend a huge amount on
Advertisements. Therefore Advertisements are the back bone for this Industry, they act as a glue
to retain their consumers and target the prospectus.
Also the consumer’s preferences and the attitudes change with the passage of the time and age.
Mediums of Advertisements also play an important role in promoting the products among the
masses.

RECOMMENDATION
1. Companies should aggressively go for Internet marketing as there is a great scope for it
because youngsters are in close contact round the clock with Internet.
2. Companies should promote their product on FM Radio stations in Jalandhar and almost
everybody listen to FM radio Stations on their cell phones so there is a great scope for
this.
3. Use of digital Billboards as images and videos change after 5 seconds on bill boards, they
are attractive and they easily grab consumer’s attention.
4. Personal contract with the customer is best possible way to attend the customers. So the
company try to make relation with the customers after sales service.
LIMITATION OF THE STUDY

Limitations are always accompanied with any work. The present study has some limitations.
 The study has been conducted in the city ‘Jalandhar’. Opinion of people of other places
may be different.
 The respondent for this study were well educated. Illiterate and less literate people might
have different views.
 As all the primary data has been collected by discussion and interviews, there is a choice
of error as people hesitate in granting correct data and sometime exaggerate the
information.
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 I tried to convince the respondents that the study is only meant for academic purpose,
some respondents were not ready to furnish other information like who is your favorite
celebrity; you rely on advertisement, which factors influence you preference.

BIBLIOGRAPHY & REFERENCE

BOOKS REFERED
 Kotler Philip (2008), Marketing Management 12th Ed, New Delhi, Pearson Education,
PP34-42
 Kotler, Philip and Pfoertsch (2006) Waldemar, 12th Ed, New Delhi, Pearson
publication, PP 56-66
 Shah .K and D’Souza .A (2009) Advertising and Promotions :An IMC Perspective 11th
Ed, New Delhi ,TMH Publications, PP359-366
Journal:-
 Fareena Sultan and Russell S. Winer, Journal of Economic Psychology Volume 14,
Issue 4, December 1993, Pages 587-61
 Menon 1994: “Customers' Perception Advertisements An Analytical Study” , Journal of
Services Marketing, Vol. 5, No. 3, pp. 39-52, September 2007
 Miss Amanda Spry, Dr. Ravi Pappu, Prof. Bettina T Cornwell, (2011) "Celebrity
Endorsement, Brand Credibility and Brand Equity", European Journal of Marketing,
Vol. 45 Iss: 6
 Zafar .B , (July 2008 ) “Advertisement and its effects : a literature review” Journal of
Marketing Management, ICFAI,Vol.2No.2, pp 27-35.
 Mark M. Moriarty(2002) Journal of Business Research Volume 11, Issue 1, March
2002, Pages 127-137
 Pamela L. Alreck et al(1999) JOURNAL OF PRODUCT & BRAND MANAGEMENT,
VOL. 8 NO. 2 1999, pp. 130-144,
 Michelle Groene (2008) . “Adoption of Digital Video Recorders and Advertising:
Threats or Opportunities.” Journal of Interactive Advertising 6.1 (2008): 51 pars.
 Zafar .B , (July 2008 ) “Advertisement and its effects : a literature review” Journal of
Marketing Management, ICFAI,Vol.2No.2, pp 27-35.
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 http://en.mimi.hu/marketingweb/lowinvolvement_products.html 2006-04-25, 14.12
 http://encarta.msn.com/encyclopedia_761564279/Advertising.html 2006-04-04, 11.36
 http://geoff.cox.free.fr/Docs/Text7.pdf 2006-04-10, 10.00
 http://www.wisegeek.com/what-are-consumer-durables.html
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