1

Assignment
On
“How does advertising impact consumer behavior”

Course Name- Marketing Management

Course Code- MKT-321

SUBMITTED TO

Mohammad Afsar Kamal

Coordinator, MBA & EMBA

Department of Business Administration,

Uttara University

PREPARED BY

Atikur Rahman

&

All group members

Batch: 39th & 45th

Department of Business Administration

Uttara University

Submission date- 16.03.2020

 2

Group List:

SL Name ID NO Batch
01 Atikur Rahman 2161011265 39th
02 [Link] Rahman Sifat 2161011018 39th
03 [Link] Hossain 2161011268 39th
04 Irin Akter 2181011011 45th
05 Farzana Akter Putul 2181011016 45th
 3

Letter of Transmittal

March 16, 2020

Mohammad Afsar Kamal

Coordinator, MBA & EMBA

Department of Business Administration, Uttara University

Sub: Submission of Assignment

Dear Sir,

This is a great pleasure for us to submit the assignment, which is a partial requirement for the
BBA program. We have prepared our assignment on “How does advertising impact
consumer behavior”. We believe that the experience we acquired from this study will be an
asset in our life. We have confidence that the study has increased both of our practical
experience and theoretical knowledge to a great extent.

It has also to be mentioned that without your expert advice and cooperation it would not
have been possible to complete this assignment. So, we requesting and hope that you
would be kind enough to accept our assignment and oblige thereby.

Sincerely Yours,
__________________
Atikur Rahman
ID: 2161011265
Batch-39th (DF)
&
My all group members
BBA Program
Uttara University
 4

Table of Contents

Heading Page

01 Introduction 05

02 Consumer Behaviour 05-06

03 Advertising 06

04 Classifications of advertising 06-11

05 Objectives and Importance of Advertising 11-13

06 Objectives of Advertising 12-13

07 Importance of Advertising 13

08 Consumer Buying Behaviour Conceptual Framework 14-15

09 Implication And Limitation 15-16

10 Conclusion 16

11 References 16
 5

Introduction:
Advertising is a way of communication to encourage an audience for making purchase
decision about a product or service and conveying information to viewers. It is
considered as a vital and essential element for the economic growth of the marketers
and businesses. Advertising is usually a paid form of exposure or promotion by some
sponsor that reaches through various traditional media such as television, newspaper,
commercial radio advertisement, magazine mail, outdoor advertising or modern media
such as blogs, websites and text messages.

Consumer Behaviour:
Consumer behaviour refers to the methods involved when individuals or groups choose,
buy, utilize or dispose of products, services, concepts or experiences to suit their needs
and desires. A behaviour that consumers display in searching for, paying for, using,
evaluating and disposing of products and services that they think will satisfy their needs.
It is a convergence of three fields of social science, they are, individual psychology,
societal psychology and cultural anthropology. A theory that answers what, why, how,
when and where an individual makes purchase ; it is particularly important to study the
subject of consumer behaviour as it facilitate firms to plan and execute superior
business strategies.
 6

Advertising:
Advertising is the promotion of a company’s products and services though different
mediums to increase the sales of the product and services. It works by making the
customer aware of the product and by focusing on customer’s need to buy the product.
Globally, advertising has become an essential part of the corporate world. Therefore,
companies allot a huge part of their revenues to the advertising budget. Advertising also
serves to build a brand of the product which goes a long way to make effective sales.

Classifications of advertising:

 Print Advertising :
The print media has been used for advertising since long. The newspapers and
magazines are quite popular modes of advertising for different companies all
over the world. Using the print media, the companies can also promote their
 7

products through brochures and fliers. The newspaper and magazines sell the
advertising space and the cost depends on several factors. The quantity of
space, the page of the publication, and the type of paper decide the cost of the
advertisement. So an ad on the front page would be costlier than on inside
pages. Similarly an ad in the glossy supplement of the paper would be more
expensive than in a mediocre quality paper.

Print advertising is a widely used form of advertising. These advertisements

appear in newspapers or magazines and are sometimes included as brochures
or fliers. print media to grab the attention of the specific target audience comes
under the purview of print advertising.
Print advertisements are only effective when people see them.

 Broadcast Advertising :
This type of advertising is very popular all around the world. It consists of
television, radio, or Internet advertising. The ads on the television have a large
audience and are very popular. The cost of the advertisement depends on the
length of the ad and the time at which the ad would be appearing. For example,
the prime time ads would be more costly than the regular ones. Radio
advertising is not what it used to be after the advent of television and Internet,
 8

but still there is specific audience for the radio ads too. The radio jingles are
quite popular in sections of society and help to sell the products.

Generally speaking, broadcast advertising is radio, television, and Internet

advertising. The commercials aired on radio and televisions are an essential
part of broadcast advertising.

A radio ad must be aired several times before it actually sinks in the minds of
the consumers. Thus the frequency of the ad is important. The type of your
target audience is also important. Therefore, one must do a research on which
type of audience listens to which channels if they want the ads to be
successful. The voice talent in the commercial should be taken keeping in mind
the type of audience and the type of commercial.

The television advertising is usually considered the advertising for the

corporate giant, though even the small businesses can benefit from it. A strong
audio and video combination is a must for the success of the commercial. But it
is also important that the audio and video should function well without each
other. For example, if a person is not viewing the TV but just listening to it, s/he
should get the idea and vice versa.

Internet or online advertising uses the Internet or the World Wide Web for the
purpose of attracting consumers to buy their product and services. Examples of
such advertising include ads on search engine result pages, rich media ads,
banner ads, social network advertising, and email marketing and so on. Online
advertising has its benefits, one of them being immediate publishing of the
commercial and the availability of the commercial to a global audience.
 9

 Outdoor Advertising :

Outdoor advertising makes use of different tools to gain customer’s attention.

The billboards, kiosks, and events and tradeshows are an effective way to
convey the message of the company. The billboards are present all around the
city but the content should be such that it attracts the attention of the customer.
The kiosks are an easy outlet of the products and serve as information outlets
for the people too. Organizing events such as trade fairs and exhibitions for
promotion of the product or service also in a way advertises the product.
Therefore, outdoor advertising is an effective advertising tool.
There are also some negative impact of billboard advertising of consumers.
Here is an example of the negative impact of wrong billboard advertising of
coca cola in Saudi Arabia:

Interesting story that will be instructive for many. So, Saudi Arabia has sent a
large advertiser Coca-Cola for the presentation of new products and the
advertising.

Having met his American team, they decided to do something clear and simple,
the Arab they did not know, and to the inclusion of the nuances of translation is
not wanted. Have been proposed a great concept: a triptych of posters (3
poster in a row). Their content was in sense the same as you see in the picture
above. That is, the first poster shows lying on the heat in the desert a person
completely exhausted. The second poster he drinks Coke. And the third fit and
healthy go for it. It was very nicely rendered, printed, and rackline throughout
 10

the city. But the ad campaign failed miserably. Why? Despite the fact that the
idea itself is good, simple and clear, and the implementation was of high quality
— American team did not realize one fact... In Saudi Arabia people read from
right to left... posted

Apart from the billboards, there are several other forms in which outdoor
advertising can take place. For example, beverage companies make use of
sporting events and arenas to showcase their products. For example, Coca
Cola was one of the FIFA World Cup sponsors. Other places where you can
see outdoor advertising are:
 Taxicabs
 Buses
 Railways
 subways and walls on which murals are painted

All these forms of outdoor advertising are very popular and extremely cost
effective.

 Covert Advertising :
This is a unique way of advertising in which the product or the message is
subtly included in a movie or TV serial. There is no actual ad, just the mention
 11

of the product in the movie. For example, Tom Cruise used the Nokia phone in
the movie Minority Report.

 Public Service Advertising :

As evident from the title itself, such advertising is for the public causes.
There are a host of important matters such as AIDS, political integrity,
energy conservation, illiteracy, poverty and so on all of which need more
awareness as far as general public is concerned. This type of advertising
has gained much importance in recent times and is an effective tool to
convey the message.

Public Service Advertising should carry a short and to the point message.

The advertisement should be made keeping the target audience in mind. As it is

not about buying a product but a change in the attitude altogether, the
advertisements have to be amply clear and the message should prompt the
people to take a step forward. If the shift in the mindsets of people does not
happen, then the ad is not conveying the message properly. For this reason, the
PSA’s are often dramatic and expressive.

Objectives and Importance of Advertising:

Advertising is the best way to communicate to the customers. Advertising helps informs
the customers about the brands available in the market and the variety of products
useful to them. Advertising is for everybody including kids, young and old. It is done
using various media types, with different techniques and methods most suited.

Let us take a look on the main objectives and importance of advertising.

 12

Objectives of Advertising:
Four main Objectives of advertising are:

 Trial
 Continuity
 Brand switch
 Switching back

Let’s take a look on these various types of objectives:

 Trial: the companies which are in their introduction stage generally work for
this objective. The trial objective is the one which involves convincing the
customers to buy the new product introduced in the market. Here, the
advertisers use flashy and attractive ads to make customers take a look on
the products and purchase for trials.

 Continuity: this objective is concerned about keeping the existing customers

to stick on to the product. The advertisers here generally keep on bringing
something new in the product and the advertisement so that the existing
customers keep buying their products.

 Brand switch: this objective is basically for those companies who want to
attract the customers of the competitors. Here, the advertisers try to convince
the customers to switch from the existing brand they are using to their
product.

 Switching back: this objective is for the companies who want their previous
customers back, who have switched to their competitors. The advertisers use
different ways to attract the customers back like discount sale, new advertise,
some reworking done on packaging, etc.
 13

Basically, advertising is a very artistic way of communicating with the customers. The
main characteristics one should have to get on their objectives are great communication
skills and very good convincing power.

Importance of Advertising

Advertising is important for the customers

Just imagine television or a newspaper or a radio channel without an advertisement!
No, no one can any day imagine this. Advertising plays a very important role in
customers life. Customers are the people who buy the product only after they are made
aware of the products available in the market. If the product is not advertised, no
customer will come to know what products are available and will not buy the product
even if the product was for their benefit. One more thing is that advertising helps people
find the best products for themselves, their kids, and their family. When they come to
know about the range of products, they are able to compare the products and buy so
that they get what they desire after spending their valuable money. Thus, advertising is
important for the customers.
 14

Consumer Buying Behaviour Conceptual Framework:

Entertainment:
Entertainment has been one of the primary criteria for creating an advertisement.
Entertainment is used as a tool to gain attention of customers. An interesting and
entertaining ad is more likely to be remembered by consumers rather than a boring one.
Therefore, it can be said that entertainment increases the effectiveness of advertising.
 15

That is why many companies are investing a lot of money to make advertisements that
are humorous.

Familiarity:
Familiarity is the number of product-related or service-related experiences that have
been gathered by the consumer. The effect of brand familiarity can be observed through
a process called ‘Product-class cues’. The product class or subcategory to which the
brand belongs could serve as a cue in many cases. A consumer may want a "fruit juice"
to have with a meal.

Social Imaging:
Advertisements generally have influence on how we perceive things around us.
Through various types of advertisements, especially TVCs portray how a user of a
certain product is or should be. It sometimes shows the social class the user of a
product belong to, their lifestyle and attitudes.

Spending:
Advertising spending can have an effect in the buying behaviour of people in a sense
that the more money spent can be linked with the quality of advertisement and the
frequency of advertisement. It may result in creating a lasting impression in consumer’s
mind. Advertising is an important extrinsic cue signalling product quality.

Implication And Limitation:

There is positive impact of all the variables on consumer buying behaviour. This means
that advertisement does in fact affect the buying behaviour of consumers. Among the
four independent variables however, we can see that Familiarity and Entertainment
 16

have the most significant impact. So, we can see that the psychological impact that
Familiarity has on consumers does in fact lead to positive buying behaviour. In this
case, most consumers have also taken Entertainment as a positive indicator towards a
brand rather than negative.

Consumers are more motivated to buy a product when they see an advertisement of it
somewhere; they also feel safe to buy a product that they have seen advertisement of.
Consumer develops a level of trustworthiness for a brand they have seen advertisement
of. They were even noted to collect information of products from advertisement, get to
know about the usage and benefits of product and then make a purchase decision
based on that. Therefore, advertisement is a very good marketing tool for generating
more sales.

Conclusion:

This assignment was a study on the impact of advertisement on consumer buying

behaviour. For this purpose four independent variables, Entertainment in
Advertisement, Familiarity of Advertisement, Social Imaging in Advertisement and
Advertisement Spending were considered. Based on the analysis it can be concluded
that advertisement has significant impact on consumer buying behaviour. This
assignment can be helpful for marketers to understand what triggers a consumer’s
intention to purchase. They can determine which element in advertising is most effective
and which has comparatively lower impact. Although this research can make significant
contribution to literature but for future study qualitative data can be used. Qualitative
data will provide further insight into the relationship among these variables.

References:
[Link]