1

Effect of Advertising
on Consumers Brand Choice
1
Thesis
On
Effect of Advertising on Consumers Brand Choice
Submitted To
Wahida Shahan Tinne
Senior Lecturer
Faculty of Business
ASA University of Bangladesh
Submitted By
Khandoker Raju Ahamed
!" #$%&'%&#%'(
Batch" )
th
)
th
Batch* BBA
ASA University Bangladesh

Date of Submission: December 30 !0"!
1
#etter of Transmitta$
!ecem+er ,'* %#'%
Wahida Shahan Tinne
Senior Lecturer
Faculty of Business
ASA University of Bangladesh
Su+ject" Re-ort on .ffect of Advertising on /onsumers Brand /hoice
!ear 0adam*
have the -leasure to su+mit my thesis re-ort on .ffect of Advertising on /onsumers Brand
/hoice1 t 2as a stimulating o--ortunity and valua+le e3-erience for me1 am very grateful for
-roviding such an im-ortant to-ic1
have -ut my +est effort to com-lete the re-ort 2ith all information that had collected1 am
dee-ly a-ologi4ing for the unintentional mistakes and ho-e you 2ill oversee those considering
my ine3-erience1 ho-e that* you 2ould +e very -leased to acce-t my re-ort and o+lige there+y1
Sincerely 5ours*
Khandoker Raju Ahamed
! 6 #$%&'%&#%'(
Faculty of Business
1
Ac%no&$edgement
At frst I would like to thankful to Allah, who supplied me with the courage,
the guidance, and the love to complete this research. This thesis is the end of my
journey in o+taining my graduation1 have not travelled in a vacuum in this journey1 This thesis
has +een ke-t on track and +een seen through to com-letion 2ith the su--ort and encouragement
of numerous -eo-le including my 2ell 2ishers* and my friends1 At the end of my thesis 2ould
like to thank all those -eo-le 2ho made this thesis -ossi+le and an unforgetta+le e3-erience for
me1 At the end of my thesis* it is a -leasant task to e3-ress my thanks to all those 2ho
contri+uted in many 2ays to the success of this study and made it an unforgetta+le e3-erience for
me1
At this moment of accom-lishment* first of all -ay homage to my su-ervisor Wahida Shahan
Tinne1 am very grateful for her since she gave me the chance to 2ork on an interesting and
-ractical to-ic1 This 2ork 2ould not have +een -ossi+le 2ithout her guidance* su--ort and
encouragement1 Under her guidance successfully overcame many difficulties and learned a lot1
can see the good sha-e of my thesis +ecause of her hel- and suggestions in formatting the entire
thesis1 nterde-endence is certainly more valua+le than inde-endence1 7er unflinching courage
and conviction 2ill al2ays ins-ire me* and ho-e to continue to 2ork 2ith her no+le thoughts1
am inde+ted to my many student colleagues for -roviding a stimulating and fun filled
environment1 0y thanks go in -articular to Samira /ho2dhury1 S-ecial thanks to Roksana Aktar1
am inde+ted to some of my good friends Ta-ash and 0aruf* for their valua+le hel- and su--ort1
2ould also like to e3tend huge* 2arm thanks to my classmate 0amunur Rahman1 Besides this*
several -eo-le have kno2ingly and unkno2ingly hel-ed me in the successful com-letion of this
-roject1 Last +ut not least* 2ould like to -ay high regards to my sister 8o2shin Sharmin and
my 0other for their sincere encouragement and ins-iration throughout my research 2ork and
lifting me u-hill this -hase of life1 o2e everything to them1
1
E'ecutive Summary
Advertising has -layed a major role in consumer marketing* and has ena+led com-anies to meet
communication and other marketing o+jectives1 Ty-ically* advertising is used to inform*
-ersuade* and remind consumers1 t im-ortantly reinforces their attitudes and -erce-tions1
Advertising has +een a target of criticism for decades1 Advertising has +een hailed as a
ca-italistic virtue* an engine of free market economy* and a -romoter of consumer 2elfare1 ts
detractors on the other hand accuse it of an array of sins ranging from an economic 2aste to
-urveying of harmful -roducts* from se3ism to deceit and mani-ulation* from triviality to
intellectual and moral -ollution 90ittal* '::);1 Advertising is seen +y many as a threat to the
cultural identity and self realisation of many develo-ing countries" it +rings to many -eo-le alien
ethical values* it may deviate consumer demands in develo-ing countries to areas 2hich can
inhi+it develo-ment -riorities< it affects and can often deform 2ays of life and lifestyles 90ac
Bride* ':$#;1 Advertising is considered unethical 2hen it degrades rival=s -roduct or su+stitute
-roduct* gives misguiding information* gives false information* conceals information that vitally
affects human life 9e1g1* side effects of drugs;* makes e3aggerated claims* is o+scene or immoral
or is against +road national interest1 While com-arative advertising may +e considered legal and
its 2ides-read use may have granted it acce-tance* the de+ate on 2hether or not it is ethical* still
continues1 There is no unanimity among advertising -rofessionals and marketing clients
regarding such >uestiona+le -ractices1 7o2ever* all agree to one as-ect that 2hile considering
the >uestion of unethical -ractices* the focus must +e to safeguard the interest of +uyers at the
micro level and the society at the macro level as their satisfaction is the key to the marketing
success1 The criticism has +een related not only to its intended effects on society* +ut also to its
unintended effects1 0ost of the criticism has come from ?elite? o+servers of society1 n contrast*
the general -u+lic has historically vie2ed advertising in a more -ositive 2ay1 Whereas criticisms
of advertising have generally originated from the highest socio&economic classes since the
earliest days of the modern marketing era and +efore* lo2er and middle class -eo-le have
historically +een more -ositive to2ard advertising 9Bauer @ Areyser* ':B$< Fullerton @ 8evett*
':$B< Steiner* ':CB< Danot* ':$);1
1
Tab$e of Content
(umber Content )age
Title Fly '
Title Eage %
Letter of Transmittal ,
Ackno2ledgement )
.3ecutive Summary (
Ta+le of /ontent B&C
/ha-ter ' ntroduction $&'%
'1' Frigin of the study :
'1% F+jectives :
'1%1' Aeneral F+jectives '#
'1%1% S-ecific F+jectives '#
'1, 0ethodology ''
'1,1' Sources of nformation ''
'1,1'1' Erimary !ata ''
'1,1'1% Secondary !ata ''
'1,1% Sam-ling -rocedure ''
'1,1%1' Sam-ling Techni>ue ''
'1) Limitation of the study '%
'1( .nding Summary '%
/ha-ter % Literature Revie2 ',&%,
/ha-ter , !ata Analysis %)&,(
/ha-ter ) Recommendation ,B&,C
/ha-ter ( /onclusion ,$&,:
References )#
A--endi3 )'&)%
1
1
Cha*ter "
+ntroduction
1.1 Origin Of the study
As a mandatory -art of BBA -rogram* all the students have to com-lete a course under an intern
-rogram in any organi4ation 2ith a vie2 to ac>uiring -ractical kno2ledge1 n today=s 2orld
education is not just limited to +ooks and classrooms1 .ducation no2&a&days is understanding the
real 2orld and a--lying kno2ledge and education for the +etterment of the society1 Theoretical
1
kno2ledge is not enough for a +usiness student1 There is a ga- +et2een the kno2ledge and
-ractical kno2ledge1 0y thesis -roject has +een launched mainly to +ridge the ga-1 .ffect of
advertising on consumer +rand choice is a very im-ortant to-ic in thesis as BBA student1
Frgani4ation very much need the information* ho2 could develo-ed the +rand in the market1
And advertising agency need information 2hat ty-e of advertise consumer like most and 2hy
advertise effect to the +rand1 0ost of the time advertises 2ork very nice to choosing the +rand on
consumer1 But advertise do not 2ork on some +rand +ecause of Bangladesh is a 0uslim country
e3am-le& alcohol +rands1 So As a BBA student major in marketing tried to e3-lain the to-ic in
a sim-le 2ay1
",! Ob-ectives
.ach advertisement is a s-ecific communication that must +e effective to customers for their
+rand choice* not just for one customer* +ut for many target +uyers1 This means that s-ecific
o+jectives should +e set for each -articular advertisement cam-aign1 Advertising is a form of
-romotion and like a -romotion< the o+jectives of advertising should +e s-ecific1 This re>uires
that the target consumers should +e s-ecifically identified and that the effect 2hich advertising is
intended to have u-on the consumer should +e clearly indicated1 The o+jectives of advertising
2ere traditionally stated in terms of direct sales1 8o2* it is to vie2 advertising as having
communication o+jectives that seek to inform -ersuade and remind -otential customers of the
2orth of the -roduct1 Advertising seeks to condition the consumer so that heGshe may have a
favora+le reaction to the -romotional message1 Advertising o+jectives serve as guidelines for the
-lanning and im-lementation of the entire advertising -rogram1 A -erson could have -articular
choice a+out +rands1 Advertising o+jective is to o-en the Brand=s >uality and good sides1
",!," .enera$ Ob-ectives
9i; To find out the reality in -ractical life1
9ii; To fulfill the re>uirement for the com-letion of -ostgraduate 9BBA; -rogram1
1
",!,! S*ecific Ob-ectives
9i; To stimulate sales amongst -resent* former and future consumers1 t involves a
decision regarding the media* e1g1* TH rather than -rint<
9ii; To communicate 2ith consumers1 This involves decision regarding co-y<
9iii; To retain the loyalty of -resent and former consumers1 Advertising may +e used to
reassure +uyers that they have made the +est -urchase* thus +uilding loyalty to the
+rand name or the firm1
9iv; To increase su--ort1 Advertising im-liedly +olsters the morale of the sales force and
of distri+utors* 2holesalers* and retailers< it thus contri+utes to enthusiasts and
confidence attitude in the organi4ational1
9v; To -roject an image1 Advertising is used to -romote an overall image of res-ect and
trust for an organi4ation1 This message is aimed not only at consumers* +ut also at the
government* shareholders* and the general -u+lic1
9vi; To explore the impact of personality used in advertisements on consumer
behaviour.
9vii; To determine the impact of keywordcaption of advertisement on
purchasing behaviour of consumer
",3 /ethodo$ogy
Some fundamental ste-s of research methodology have +een ado-ted through my s-eciali4ation
field of study of BBA -rogram and also from the fields of other areas1 n my study had taken
thesis 2ork1
",3," Sources of +nformation
1
",3,"," )rimary Data
9i; Iuestionnaire
9ii; Survey 0ethod
",3,",! Secondary Data
9i; Journals*
9ii; 0aga4ines*
9iii; Re-orts*
9iv; We+sites1
",3,! Sam*$ing *rocedure
The outcome 2hich is e3-ected is that there 2ould +e a considera+le im-act of advertising on the
students* as students these days are more inclined to2ards the latest trends -revailing in the
market and also like to link themselves 2ith the kno2n +rands and -roducts1 /om-anies these
days are investing huge amounts just to make their -roducts kno2n amongst the -eo-le* survey
-a-ers 2ere distri+uted to students* jo+ holders* house holders* and +usiness -ersons1
",3,!," Sam*$ing Techni0ue
1niverse " All consumers of Bangladesh
)o*u$ation " Eeo-les of Bangladesh
Sam*$ing 2rame " Eeo-le of !haka1
Sam*$e Si3e " )# random consumers in Bangladesh
Sam*$ing Techni0ue " /onvenience Sam-ling
",4 #imitation of the study
Advertising these days is the major tool of -romotion and 2ithout advertising it is very difficult
for any com-any to survive in this com-etitive 2orld1 The youth +eing one of the major -eo-le
amongst the -o-ulation +eing targeted +y the com-anies and the com-anies no2 days are
coming out 2ith the -roducts 2hich are s-ecially meant for the youth1
The research 2ould +e regarding the effects of advertising on the customers in 2ith s-ecial
reference to the students of ASAUB1 The customers tend +uy the -roduct 2hen they 2atch the
1
advertisements and 2hat 2ould +e the major focus of the research is that the fre>uency of
advertisements has a im-act on the re-eat -urchase1 So 2hat really needs to +e found is that do
the advertisements tend to +oost the sales of the com-any as com-anies are investing huge
amounts in the advertising activities1 So is the -ractice made +y the com-anies fruitful or it is
only an e3-ense and 2hether there is a significant difference in the attitudes of university
student* college students* school students* jo+ holder and house holder for the advertisements1
And last lacking is could not manage enough time to deal 2ith my re-ort1 The main o+struct in
time itself1 !ue to time limit* the sco-e and dimension of study has +een curtailed1 And in the
2orld a huge num+er of -eo-le o+serve advertise to choose their +rand so )# survey -a-er is too
much lo2er to find out the thesis result1 And also Lack of coo-eration of the res-ondents 2as the
very +ig -ro+lem in this 2ork1
",5 Ending Summary
This 2ould hel- us to kno2 the im-act of advertisements on the consumers 2ould make it clear
that 2hat com-anies should do more in order to attract the youth to2ards them1 The outcome
2hich is e3-ected is that there 2ould +e a considera+le im-act of advertising on the consumers1
as consumers these days are more inclined to2ards the latest trends -revailing in the market and
also like to link themselves 2ith the kno2n +rands and -roducts1 /om-anies these days are
investing huge amounts just to make their -roducts kno2n amongst the -eo-le* so that they could
make attract customers and make them +uy those -roducts1
1
Cha*ter !
#iterature 6evie&
!, #iterature 6evie&
A variety of mechanisms have +een -ro-osed in the marketing literature to study the effect of
advertising on +rand choice1 Advertising informs consumers a+out -roduct +enefits* and can
influence consumer +rand evaluations and su+se>uent -urchase decisions 90ehta* /hen and
8arasimhan* %##$;1 Advertising effects are also measured using models 2here consumers are
1
assumed to learn a+out the true >uality of a -roduct over time 9.rdem and Keane '::B;1 .arly
studies of advertising effects relied on aggregate data and time series models to estimate
carryover effects 9/larke ':CB;* and more recent studies have investigated advertising effects
using scanner&-anel data 9Eedrick and Dufryden '::'* 7orsky* 0isra and 8elson %##B;1
Advertising is the no -ersonal communication of information usually -aid for and usually
-ersuasive in nature a+out -roducts* services or ideas +y identified s-onsors through the various
media?9Bovee* '::%;1 According to the legal definition of advertising* the term advertising
generally refers to -aid forms of communication that are distri+uted at the initiative of economic
o-erators 9+y means of television* radio* ne2s-a-ers* +anners* mail* nternet* etc1; as -art of an
intentional and systematic effort to affect individual attitudes and choices in relation to the
consum-tion of goods and services1
The 2ord advertising originates from a Latin 2ord advertise* 2hich means to turn to 9Kotler*
%##,;1 The dictionary meaning of the term is Kto give -u+lic notice or to announce -u+liclyL1
Advertising may +e defined as the -rocess of +uying s-onsor&identified media s-ace or time in
order to -romote a -roduct or an idea1 The American 0arketing Association* /hicago* has
defined advertising as Kany form of non&-ersonal -resentation or -romotion of ideas* goods or
services* +y an identified s-onsor1L
Advertising is the method used +y +usinesses* com-anies and other organisations to -romote
their goods and services to the -u+lic1 The ultimate aim of advertising is to increase sales +y
sho2ing these goods and services in a -ositive light1 Advertising is a form of communication for
marketing and used to encourage or -ersuade an audience 9vie2ers* readers or listeners<
sometimes a s-ecific grou-; to continue or take some ne2 action1 0ost commonly* the desired
result is to drive consumer +ehaviour 2ith res-ect to a commercial offering* although -olitical
and ideological advertising is also common1 n Latin* ad vertere means Kto turn the mind
to2ard1L The -ur-ose of advertising may also +e to reassure em-loyees or shareholders that a
com-any is via+le or successful1 Advertising messages are usually -aid for +y s-onsors and
vie2ed via various traditional media< including mass media such as ne2s-a-er* maga4ines*
television commercial* radio advertisement* outdoor advertising or direct mail< or ne2 media
such as +logs* 2e+sites or te3t messages1
1
Legislative !ecree no1 ')(G%##C defines advertising as Kthe making of a re-resentation in any
form in connection 2ith a trade* +usiness* craft or -rofession in order to -romote the su--ly of
goods or services* including immova+le -ro-erty* rights and o+ligationsL1 This is clearly a very
+road conce-tion that encom-asses all forms of -romotional communication* regardless of the
means or methods of distri+ution1 What it does e3clude is -u+licity that is non&commercial* in
the sense that it makes no reference to economic activities* such as -olitical -ro-aganda and
social -u+licity1 This advertising notion still includes* ho2ever* forms of communication that
-romote a +usiness image as -erceived +y consumers* even 2hen no immediate form of sales
-ush for s-ecific goods or services is involved1
As for advertising methods and means of distri+ution* a relentless -rocess of innovation
continues to +e driven +y the imagination of advertisers* technological develo-ments and the
develo-ment of ne2 marketing techni>ues1 8e2 advertising vehicles like the nternet continue to
emerge alongside traditional distri+ution methods* like television* dailies and -eriodicals*
+anners* direct marketing 9mailings* -hone calls and door&to&door sales;* radio* cinema and
-roduct -ackaging itself1 As should +e readily a--arent* the decree a--lies to all advertising
regardless of the s-ecific means of distri+ution1
/om-arative advertising is an advertising method that +usinesses use to -romote their goods and
services +y com-aring them 2ith the -roducts of their com-etitors1 The identification of actual
com-etitors may +e im-licit or e3-licit1 The former is kno2n as indirect com-arative advertising*
and the latter is kno2n as direct com-arative advertising1 /ommercial advertisers often seek to
generate increased consum-tion of their -roducts or services through ?+randing*? 2hich involves
the re-etition of an image or -roduct name in an effort to associate certain >ualities 2ith the
+rand in the minds of consumers1 8on&commercial advertisers 2ho s-end money to advertise
items other than a consumer -roduct or service include -olitical -arties* interest grou-s* religious
organi4ations and governmental agencies1 8on-rofit organi4ations may rely on free modes of
-ersuasion* such as a -u+lic service announcement 9ESA;1
Researchers have documented the -resence of interactive effects of advertising on -rice
sensitivity and other varia+les 90ela* Au-ta and Lehmann '::C* Kanetkar* Wein+erg and Weiss
'::%;* and more recently have -ro-osed threshold models to ca-ture the effect of advertising in
1
aggregate data 2here consumers res-onses change 2hen advertising levels are sufficiently high
9!u+e* 7itsch and 0anchanda %##(* Hakratsas* Fein+erg Bass and Kalyanaram %##);1 An
im-licit theme in these analyses is that advertising has a direct and -ossi+ly lagged effect on
consumer utility* either +y informing consumers of +rand characteristics* or +y making them
more sensitive to e3isting characteristics1
There are some varia+les or factors that need to +e considered 2hen creating advertising1 These
factors are 2aste* reach* fre>uency* message -ermanence* -ersuasive im-act and clutter1
Waste" Waste is the -ortion of an audience that is not in a firmMs target market1 Because media
a--eal to mass audiences* 2aste is a significant factor in advertising1 For e3am-le* a firm -lans
to -lace an advertising of a ne2 digital camera in a s-ecial&interest maga4ine for amateur
-hotogra-hers1 Through research* this firm kno2s that )(#*### readers 2ill have an interest in a
ne2 camera< (#1### 2ill have no interest1 The latter re-resents the 2asted audience for an ad on
that film1
Reach" Reach refers to the num+er of vie2ers or readers in the audience1 For television and
radio* reach is the total num+er of -eo-le 2ho are e3-osed to an advertisement1 For -rint media*
reach has t2o com-onents* circulation and -ass&along rate1 /irculation is the num+er of co-ies
sold or distri+uted to consumers1 Eass&along rate is the num+er of each co-y is -laced 2ith
another reader1 For e3am-le* each co-y of 8e2s2eek is read +y a+out si3 -eo-le1
Fre>uency" Fre>uency is ho2 often a medium can +e used1 t is greatest for ne2s-a-ers* radio*
and television* 2here ads may a--ear daily and advertising strategy may +e easily changed1
Tele-hone directories* outdoor ads* and maga4ines have the -oorest fre>uency1 A 5ello2 Eages
ad may +e -laced or changed only once -er year1
0essage" 0essage -ermanence refers to the num+er of e3-osures one advertisement generates
and ho2 long it remains 2ith the audience1 Futdoor ads* transit ads* and tele-hone directories
yield many e3-osures -er message1 n addition* many maga4ines are retained +y consumers for
long -eriods of time1 Fn the other hand* radio and television commercials last only ( to B#
seconds and are over1
1
Eersuasive" Eersuasive im-act is the a+ility of a medium to stimulate consumers1 Television often
has the highest -ersuasive im-act +ecause it is a+le to com+ine audio* video* colour* animation*
and other a--eals1 0aga4ines also have high -ersuasive im-act1 0any ne2s-a-ers are im-roving
their technology in order to feature colour ads and increase their -ersuasive im-act1
/lutter" /lutter involves the num+er of ads that are contained in a single -rogram* issue* etc1 of a
medium1 /lutter is lo2 2hen a limited num+er of ads are -resented* such as 7allmark -lacing a
fe2 scattered commercials on its television s-ecials1 /lutter is high 2hen many ads are
-resented* such as the large num+er of su-ermarket ads in the Wednesday issue of a ne2s-a-er1
ncreasingly* television net2orks are +eing critici4ed for -ermitting too much clutter* -articularly
in allo2ing com-anies to s-onsor very +rief commercials 9e1 g1* '( seconds or shorter;
The theoretical formulations of the advertising* -rocess into four grou-ings1 These
four theoretical divisions are the -ressure&res-onse theories* the active learning theories< the lo2&
involvement theories< and the dissonance reduction theories 9Tellis* %##)< Fine* '::%<Krugman*
':B(< as cited in 8a4ir* %##' ;
All advertising efforts are directed mainly to2ards the achievement of +usiness* marketing
and advertising o+jectives i1e1* to increase the sales turnover and thus to market the ma3imum
-rofit1 The advertiser s-ends lakes of ru-ees in to this advertising activity1 n the +ackground of
all these efforts* is an attem-t to attract the customer to2ards the -roduct through advertising1 As
soon as the advertising cam-aign is over* a need is generally arisen to measure the effectiveness
of the cam-aign1 Whether* it has achieved the desired results i1e1 desired sales -rofita+ility or
results in terms the change in customer= +ehavior in favor of the com-any=s -roduct 2hich 2ill
naturally* affect the future sale of the -roduct1
n order to measure the effectiveness of advertising co-y* t2o ty-es of tests -re tests and -ost
tests& can +e undertaken1 Ere tests are generally conducted in the +eginning of the creation
-rocess or at the end of creation -rocess or -roduction stage1 There are several -re and -ost tests
techni>ues to measure the effectiveness of the advertising co-y1
The effectiveness of advertising in a -articular media may also +e measured in any of the
follo2ing 2ays N
1
9a; By giving different addresses to different media*
9+; !ifferent ne2s-a-ers may +e selected for advertisements of different de-artments*
9c; /ou-on +lank etc1 0ay +e -rovided 2ith the advertisement or
9d; .n>uiry from consumers should mention the name of the source of information1
The techni>ue is kno2n as keying the advertising1 Thus in measuring the effectiveness of
advertising 2e include measuring of the effectiveness of advertising cam-aign* advertising co-y
and the effectiveness of individual media1
7"8 +t acts as a Safety measure
Testing effectiveness of advertising hel-s in finding out ineffective advertisement and advertising
cam-aigns1 t facilitates timely adjustments in advertising to make advertising consumer oriented
and result oriented1 Thus 2aste of money in faulty advertising can +e avoided1
7!8 )rovides feedbac% for remedia$ measures
Testing effectiveness of advertising -rovides useful information to the advertisers to take
remedial ste-s against ineffective advertisements1
738 Avoids *ossib$e fai$ure
Advertisers are not sure of results of advertising from a -articular advertising cam-aign1
.valuating advertising effectives hel-s in estimating the results in order to avoid com-lete loss1
748 To -ustify the +nvestment in Advertising
The e3-enditure on advertisement is considered to +e an investment1 The investment in
advertising is a marketing investment and its o+jectives should +e s-elt out clearly indicating the
results e3-ected from the cam-aign1 The rate and si4e of return should +e determined in advance1
f the e3-ected rate of return is achieved in terms of additional -rofits* the advertisement can +e
considered as effective one1
758 To %no& the communication Effect
The effectiveness of the advertisement can +e measured in terms of their communication effects
on the target consumers or audience1 The main -ur-ose of advertising is communicated the
general -u+lic* and e3isting and -ros-ective consumers* various information a+out the -roduct
and the com-any1 t is therefore desira+le to seek -ost measurements of advertising in order to
determine 2hether advertisement have +een seen or heard or in other 2ords 2hether they have
communicated the theme* message or a--eal of the advertising1
1
798 Com*are t&o mar%ets
Under this -rocedure* advertising is -u+lished in test markets and results are contrasted 2ith
other1 0arkets N so called control markets N 2hich have had the regular advertising -rogram1 The
measurements made to determine results may +e measurements of change in sales* change in
consumer attitudes* changes in dealer dis-lay and so on de-ending u-on the o+jectives sought +y
the advertiser1
Advertising is aimed at im-roving the sales volume of a concern so its effectiveness can +e
evaluated +y its im-act on sales1 0ost of the managers +elieve that the advertisement directly
affects the sales volume and hence they evaluate the effectiveness of the advertising cam-aign +y
the increase in the sales volume1
There may +e t2o ty-es= measures"
7"8 Direct /easures of Advertising Effectiveness
Under direct measures* a relationshi- +et2een advertising and sales is esta+lished1 A com-arison
of sales of t2o -eriods or t2o -eriods or t2o markets may +e done and the corres-onding
changes may +e noted1 The follo2ing are some of the methods that are generally used in
measuring that advertising effects1
7a8 :istorica$ Sa$es /ethod
Some insights into the effectiveness of -ast advertising may +e o+tained +y measuring the
relationshi- +et2een the advertising e3-enditure and the total sales of the -roduct1 A multi-le
regression analysis of advertising e3-enditure and sales over several time -eriods may +e
calculated1 t 2ould sho2 ho2 the changes in advertising e3-enditure have corres-onding
changes in sales volume1 This techni>ue estimates the contri+ution that advertising has made to
e3-laining in a co relational manner rather than a casual sales* the variation in sales over the time
-eriods covered in the study
7b8 E'*erimenta$ Contro$
The other measure of advertising effectiveness is the method of e3-erimental control 2here a
casual relationshi- +et2een advertising and sales is esta+lished1 This method is >uite e3-ensive
2hen related to other advertising effectiveness measures yet it is -ossi+le to isolate advertising
contri+ution to sales1 0oreover this can +e done as a -re&test to aid advertising in choosing
+et2een alternative creative designs1 0edia schedules e3-enditure levels or some com+ination of
1
these advertising decision areas1 Fne e3-erimental a--roach to measuring the sales effectiveness
of advertising is test marketing1
7!8 +ndirect /easures
As it is very difficult to measure the direct effect of advertising on com-any=s -rofits or sales*
most firms rely heavily on indirect measures1 These measures do not evaluate the effects of
advertisements directing on sales or -rofits +ut all other factors such as customer a2areness or
attitude or customer recall of advertising message affect the sales or -rofits or goals of the
+usiness indirectly1 !es-ite the uncertainties a+out the relationshi- +et2een the intermediate
effects of advertising and the ultimate results* there is no other alternative +ut to use indirect
measures1 The most commonly used measures are N
7i8 E'*osure to Advertisement
n order to +e effective* the advertisement must gain e3-osure1 The management is concerned
a+out the num+er of target audiences 2ho see or hear the organi4ation message set in the
advertisement1 Without e3-osure* advertisement is +ound to failure1 0arketers or advertisers
may o+tain an idea of e3-osure generated +y the medium +y e3amining its circulation or
audience data 2hich reveal the num+er of co-ies of the maga4ine* ne2s-a-er or journal sold the
num+er of -ersons -assing the +ill+oards or riding in transit facilities* or the num+er of -ersons
living in the television vie2ing or radio listening area* and the num+er of -ersons s2itching on
their T1H1 and radio sets at various -oints of time1 This num+er can +e estimated +y intervie2ing
the num+ers of the audience for different media1
7ii8 Attention or 6eca$$ of Advertising /essage Content
This is one of the 2idely used measures of advertising results1 Under this measure* a recall of the
message content among a s-ecified grou- or grou-s or -ros-ective customers is measured 2ithin
%) hours of the e3-osure of the advertisement1
Attention value is the chief >uality of the advertising co-y the advertisements cannot +e said to
+e effective unless they attract the attention of the target consumers1 There are t2o methods for
evaluating the attention getting value of the advertisements1 Fne is -re&test and the other is -ost&
test1 n a -re&test evaluation* the consumers are asked to indicate the e3tent to 2hich they
1
recogni4e or recall the advertisement* they have already seen1 This test is conducted in the
la+oratory setting1 7ere consumers read* hear or listen to the advertisement and then researchers
ask >uestion regarding the advertisement just to test the recall and then evaluate it1 n -ost&test
method* the consumers are asked >uestions a+out the indication of recognition or recall after the
advertisement has +een run1 These measures assume that customers can recall or recogni4e 2hat
they have vie2ed or listened to1 Harious mechanical devices are +eing used in the 2estern
countries 2hich -rovide indices of attention such as eye&camera etc1
7iii8 Brand A&areness
The marketers 2ho rely heavily on advertising often a--raise its effectiveness +y measuring the
customer=s a2areness a+out the -articular -roduct or +rand1 The assum-tion of this ty-e of
measure is that there is a direct relationshi- +et2een the advertisements and the a2areness1 This
ty-e of measure is also su+ject to the same criticisms as is a--lica+le to direct measures of
effectiveness 9sales measures +ecause a2areness is also not the direct result of the
advertisements1 t is also affected +y many other factors1 But* for ne2 -roducts* changes in
a2areness can often +e attri+uted to the influence of advertising1
7iv8 Com*rehension
/onsumers generally use advertisements as a means of o+taining information a+out the -roduct*
+rand or the manufacturer1 They cannot +e informed unless they com-rehend the message 9gras-
the message mentally and understand it fully;1 Harious tests for valuating com-rehension are
availa+le N
Fne is recall tests N an indicator of com-rehension +ecause it is evident that consumers recall
2hat they com-rehend1 Another measure of the varia+le is to ask >uestions a+out su+jects ho2
much they have com-rehended a message they have recently heard or seen1 Fne may em-loy
some2hat im-recise test of the com-rehension of a ne2s-a-er and radio advertisement1 Fne
may ask ty-ical target consumers from time to time such >uestions like O2hat did you think of
our ne2 commercialP= and O!id it get the message across=P The ans2ers of these >uestions 2ill
-rovide sufficient insight into advertising decision making1
7v8 Attitude Change
Since advertising is considered to +e one 2ay of influencing the state of the mind of the audience
to2ards a -roduct* service or organi4ation* the results are very often measured in terms of
1
attitudes among grou-s e3-osed to advertising communication1 Several measures are used
ranging from asking the >uestions a+out 2illingness to +uy the likelihood of +uying to the
measurement of the e3tent to 2hich s-ecific attri+utes 9such as modern or ne2; are associated
2ith a -roduct1
7vi8 Action
Fne o+jective of advertisement may +e assumed to +e to stimulate action or +ehavior1 The action
or intention to take an action may +e measured on the intention to +uy measuring instrument1
Under this ty-e of measure* consumers are asked to res-ond 2hy they are interested in
-urchasing the -roduct or +rand1 Fne ty-e of action that advertisers attem-t to induce is +uying
+ehavior1 The assum-tion is that if an increase in sales follo2s a decrease in advertising
e3-enditure* the change in sales levels are good indicators of the effectiveness of advertising1
Logic suggests that measurement of sales is -refera+le to other measurements1
Thus* these a+ove measures 9direct or indirect; are used to evaluate the effectiveness of
advertisements1 t seems from the analysis of the a+ove methods of measuring effectiveness that
directly or indirectly changes in sales or -rofits are taken as the measuring rod of the
effectiveness of the advertising1
The final e3ternal factor in the -lanning frame2ork concerns environmental factor social* legal*
and glo+al1 La2 for+ids dece-tive advertising1 Fne solution is to create +rand advertising that is
vague and contains little s-ecific information1 7o2ever* such an a--roach can result not only in
ineffective advertising< +y it can lessen the social value of advertising +y reducing the amount for
useful information that it -rovides to society1 Thus* and advertiser 2ho attem-ts to -rovide
s-ecific* relevant information must +e 2ell a2are of advertising regulation1
.ven more difficult consideration for -eo-le involved in the advertising effort is +road social and
economic issues1 Another concern is that advertising* es-ecially 2hen it is more irritating than
entertaining* is an intrusion into an already e3cessively -olluted environment1 A 2hole set of
rules is emerging to cover advertising directed at children* and advertising for -roducts such as
alcohol and cigarettes* and the use of environmental and health claims in advertising1
Thus advertising has a tremendous im-act on international marketing and the t2o conce-ts
therefore go hand in hand and are de-endent on each other1
1
1
Cha*ter 3
Data Ana$ysis
3, Data Ana$ysis
The res-ondents 2ere asked a+out the sources of the information regarding ne2 -roduct1
Ans&ers (o, of res*ondents
Te$evision %'
(e&s*a*ers (
/aga3ines '
+nternet ',
)eers 72ami$y ; 2riends8 #
1
A large si4e of -o-ulation is influenced +y Television and nternet* 2hich means advertisement*
2ould +e the +est medium to get them the information to the youth1
The res-ondents 2ere asked a+out the likings of the form of advertisement1
Ans&ers (o, of res*ondents
Sti$$ image :
/oving image ,'
1
Eeo-le are more affected +y advertisement 2ith moving image1 S-ecially in this case 2here )#
consumers are contri+uting to this survey result 2ould like more moving image advertisement
rather than going for the still or -rint media advertisement1
The res-ondents 2ere asked 2hether the advertisement is a source of information or
entertainment1
Ans&ers (o, of res*ondents
nformation %B
.ntertainment ')
1
0ore num+er of consumers considers advertisement as a source of information rather than a
source of entertainment1 Fut of )# consumers B(Q of them are going for the advertisement
+ecause of the information that they 2ill get from that for e3am-le latest trend and 2hat -hone
going to +e launch in the market etc1
The res-ondents 2ere asked 2hether entertaining advertisement affect their o-inion a+out the
-roduct1
Ans&ers (o, of res*ondents
5es ,)
8o B
1
.ntertaining advertisement does affect the o-inion of customer a+out the -roduct 2hich is one of
the o+jectives of the -roject to find out 2here as Advertisement affects the customer -erce-tion
to2ards the -roduct1 This has +een yes told +y the $(Q consumers1
The res-ondents 2ere asked 2hether information -rovided in advertisement affects their o-inion
a+out the -roduct1
Ans&ers (o, of res*ondents
<es ,%
(o $
1
nformation -rovided in the advertisement affect very much on the o-inion of consumers a+out
the -roduct* 2hich means $#Q of the consumers are said yes it is im-act on their -urchasing
+ehavior so it is most im-ortant factor for the students to target on
The res-ondents 2ere asked 2hether language used in advertisement affects their o-inion a+out
the -roduct1
Ans&ers (o, of res*ondents
<es !=
(o "!
1
Language used in the advertisement affects a lot on the o-inion of consumers a+out the -roduct1
Which is the one of o+jective to reach out +ecause student looking for more trendy and stylish
advertisement -attern 2hich is told yes +y the C#Q consumers1
The res-ondents 2ere asked 2hether -resence of any cele+rity in the advertisement affects their
o-inion a+out the -roduct1
Ans&ers (o, of res*ondents
<es %#
(o %#
1
Eresence of any cele+rity affects on the o-inion of consumers a+out the -roduct +ecause (#Q of
the consumers are influence +y the cele+rity (#Q of the consumers are given their vie2s that yes
if any cele+rity 2ill comes to the ad that 2ill influence their -urchasing +ehavior1 But (#Q
consumers do not influenced +y cele+rity +ecause of they kno2 cele+rity do not change the
-roduct >uality1 They 2ork only for influencing -eo-les1
The res-ondents 2ere asked 2hether intensity 9fre>uency; of the advertisement affects their
o-inion a+out the -roduct1
Ans&ers (o, of res*ondents
<es %:
(o ''
1
The effect of intensity is very -o2erful on the o-inion of consumers a+out the -roduct1 This is
one of our o+jectives to +e reached out also +ecause the fre>uency of advertisement 2ill increase
the +rand recall of the consumers1
The res-ondents 2ere asked 2hether -resence of social issues in the advertisement affects their
o-inion a+out the -roduct1
Ans&ers (o, of res*ondents
<es ,'
(o :
1
Eresence of social issues in advertisements affects very much on the o-inion of consumers a+out
the -roduct1 CCQ of the consumer=s changes there +uying +ehavior only +ecause of that1
The res-ondents 2ere asked 2hether advertisement hel-s in increasing sales of any -roduct1
Ans&ers (o, of res*ondents
<es )#
(o #
1
Advertisement hel-s very much in increasing the sales of any -roduct1 t has +een -roved from
this >uestion that it 2ill im-act on the customer directly if the com-any launched any good
advertisement1 '##Q of the -eo-le suggested for the same as -er our study1
The res-ondents 2ere asked 2hich ty-es of advertisement influences them more1
Ans&ers (o, of res*ondents
(ationa$ Advertisement ,'
#oca$ Advertisement :
1
7igher num+ers of -eo-les like national advertisement1 CCQ consumers like national and %,Q
like local1
1
Cha*ter 4
6ecommendation
6ECO//E(DAT+O(
This research study is an endeavour to secure ade>uate evidence on the conse>uences of the
advertising and their relationshi- to the general attitude of the consumers1 The results of the
research clearly reveal that most of the res-ondents feel that the ongoing advertising is unethical
+ecause of its deceiving* e3aggerating nature for and -utting more em-hasis on the se3 a--eals1
At the same time majority of the res-ondents consider the advertising to +e an im-ortant tool for
1
the economic gro2th* im-rovement of standard of living* guaranteeing the >uality -roducts and
an effective means to curtail -rices1 The results of the study sho2 very significant negative
feelings of the res-ondent a+out the social conse>uences of the current advertising1 The
advertising is considered to +e the sole source 2hich convinces the -eo-le to +uy the -roducts
that they no more need* confuse the -eo-le +y creating clutter effect* -romotes materialism and
inculcate o+scene values in the youth -o-ulace of !haka1 The results of the study also de-ict that
the students demand le3ical changes +y the regulatory authorities 2ith the vie2 to controlling the
advertising1 The results sho2 an overall* -ositive* general attitude of the students to2ards the
advertising1 Also* the results of the study highlight the techni>ue as to ho2 to assess and evaluate
the ethical* economic and social conse>uences of the advertising on the -art of the marketers and
the regulatory authorities +efore they launch any cam-aign1 The gro2ing ethical* social and
regulatory concern of the students as indicated in the results of the study invites attention of the
marketers and the regulatory authorities like to avoid any disru-tion in the -ositive* general
attitude to2ards the advertising1
1
Cha*ter 5
Conc$usion
CO(C#1S+O(
!es-ite the fact that advertising is an effective tool for the +usiness along 2ith its +eing an
m-ortant element of the modern age and a fast gro2ing industry* the -u+lic image of advertising
is still a matter of great concern1 9F=!onohoe* '::(;1 Advertising is critici4ed for its -resenting
misleading information* -romoting adverse values* fake claims* su+liminal seduction messages
and -ersuading -eo-le to +uy things they no longer need 9Katona* ':B)< Eollay* ':$B< Eollay and
1
0ittal*'::,;1 Again* this industry is +lamed of s-reading unsustaina+le consum-tion -atterns
around the 2orld over and encouraging e3cessive consum-tion1 All the foregoing as-ects are a-t
to hinder its effectiveness as 2ell as efficiency as a marketing tool 9Beales et al1* ':$'< /alfee
and Ringold* ':$C< Eollay and 0ittal* '::,< Wright* ':$B;1 Therefore* it is critical of the
advertising concerns to follo2 the -u+lic o-inion advertising for its for reaching im-act on the
economy* cultural values and on the +usiness itself1 9Wills and Ryans< ':$%;1 The students
re-resent a si4ea+le segment of the society1 They have dominating role in o-inion making1 That
is 2hy< e3clusive studies on the students= attitude to2ards advertising are +eing carried out in
different -arts of the 2orld today1 To e3-loring the college students= attitudes to2ards advertising
is im-ortant for several reasons1 They are a large and ever gro2ing segment of the -o-ulace1
They have considera+le amount
of money at their dis-osal1 They are the outstanding asset for the -roduct and service sellers as
they are the trendsetters and early ado-ters1 They can influence the -urchasing decisions of their
-eers and -arents* esta+lish +rand loyalties that continue long after the college days* and ensure a
higher standard of living after their graduation 90orton* %##'< Russell* '::B< Wol+urg and
Eokry2c4ynski* %###;1
6E2E6E(CES
'1 Aoogle* 9%#'%;1 .ffect of Advertisement* htt-"GG2221google1com* retrieved* January (*
%#''1
%1 Kotler* E 9;1 0arketing 0anagement1
0ohan* 0 9%##C;1 Advertising Management Concepts and Cases1 Erentice&7all of ndia1
Scri+d* 9%#'%;1 .ffect of Advertisement* htt-"GG2221google1com* retrieved* January (* %#''1
1
b. Books
*0arketing 0anagement N Ehili- Kotler* Branding N Aeoffrey Randoll* Strategic Brand
0anagement N Ka-ferer* Advertising and Sales Eromotion 0anagement N S1L1Au-ta* H1H1Ratra*
Advertising and Salesmanshi- N E1Saravanavel1
A))E(D+>
!ame" ############.................................
1
$ex" a. %ale & ' b. (emale & '
Age"
a. )elow *+ & '
b. *+ to ,+ & '
c. ,+ to -+ & '
d. Above -+ & '
.ccupation"
a. $tudent & '
b. )usiness class & '
c. /ouse hold & '
d. $ervice class& '
1. (rom where do you get information about the new product0
a. Television & '
b. !ewspapers & '
c. %aga1ines & '
d. Internet & '
e. 2eers 3friendsfamily4 & '
*. 5hich form of advertisement do you like more0
a. $till image 3%aga1ines !ewspapers4 & '
b. %oving image 3Television Internet4 & '
,. (or you advertisement is a source of
a. Information & '
b. 6ntertainment & '
-. 7oes an entertaining advertisement in8uence your opinion about the
product0
a. 9es & '
b. !o & '
:. 7oes information provided in advertisement a;ects your opinion about the
product0
a. 9es & '
b. !o & '
<. 7oes language used in advertisement a;ects your opinion about the product0
a. 9es & '
b. !o & '
=. 7oes presence of any celebrity in the advertisement a;ects your opinion
about the product0
a. 9es & '
b. !o & '
>. 7oes intensity of the advertisement a;ects your opinion about the product0
a. 9es & '
b. !o & '
?. 7oes presence of social issues in the advertisement a;ects your opinion
about the product0
a. 9es & '
b. !o & '
1+.7o you think advertisement helps in increasing sales of any product0
1
a. 9es & '
b. !o & '
11.5hich type of advertisement in8uences you more0
a. !ational advertisement & '
b. @ocal advertisement & '