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Program:

BEACHLOR BUSINESS ADMINSTRATOR


Submitted To:

Madam : Khansa Irem

Submitted By:

M.TARIQ

11344

BBA (5) A

Superior University Lahore

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Table of Content
Page No
Title ............01 Acknowledgement ........03 Dedication ......03 Abstract. .....04 1. Introduction.......04to5 1.1. Theoretical model......5 1.1. Purpose of Research.....06 1.2. Objective..06 1.3. Significance of research....06 1.4. Research Question....07 1.5. Hypothesis....07 2. Literature Review.........................07to11 Data & Methodology........12 2.1. Data......12 2.1.1. Paradigms .....12 2.1.2. Secondary data .....13 3.2. Methodology ...14 3. Limitations and Delimitations.....15 4. Ethical Considerations.............15 5. References.......16

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Acknowledgement and dedication

Acknowledgement:-

First of all we are thankful to one and only the Almighty Allah and his prophet Mohammed (PBUH) for always guiding us in the thick and thin and giving us strengths and courage to complete this proposal, without them nothing would have been possible. Our special thanks to our teacher Madam.Khansa Irem who not only provide us Opportunity to do this assignment but also paid a Fair attention to do it. Then we would like to thank our parents whose prayers and support have always been influential in our lives. Finally we would like to thank all the people who directly or indirectly helped us out in this, and a thank you goes to the organizations whose data we used in this project as well.

Dedication:To Almighty Allah and his prophet Mohammed (PBUH), and to Our loving parents who gave our life to face the world and to our dearest sisters who gave us a lot and always there For us whenever we need them we also dedicate to all our teacher specially Madam.Khnsa Irem to teach us and help us in every knowledge activity that we were done.

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Impacts of advertisement on consumer buying behavior

Abstract
Expansion strategies, industry brand awareness that great influence of consumer buying behavior. Our main aim exploring the factor that effect consumer buying behavior. In my study I choose industrial sector of Pakistan which I select production industry sector. In this study I will get data through questionnaires and interviews. The total number of my respondents will be hundred.

1.Introduction:Understanding consumer buyer behavior is basic to the successful management of the marketing mix and the building of long term, profitable customer relationships. It is, after all, consumers who make up markets. Neilson studies show social media ranks as the second highest of channels where people spend their time. Television ranks first, at 30% and social media is 28%, while radio trails at 16% and print is dropping to 12%. Moreover, social networks are where people are online, ranking highest of time spent at 28%, contrasted to all other online uses which drop to less than 10% of time spent. Social media allows a company to create two-way communication with stakeholders. No longer are companies limited to one way information to its public. Traditional methods often make customers and prospects feel they are shouted at and bombarded by top down messages. By contrast, social media allows people to interact with a company In order to offer the right consumers the right products at the right time, providers of products and services need to understand their preferences, prejudices, motivations and buying habits. They need to appreciate that every purchase decision is a choice decision and that it encompasses a wide variety of factors. As human beings, we make our choice using a combination of rational judgments, based on facts and previous experience, and subjective feelings that determine our likes and dislikes. As consumers are not always the buyers and this chapter adopts the definition of consumers as being the end users of the product or service. In trying to comprehend why people buy what they buy, marketers have to make judgments about the importance they ascribe to consumers expressed beliefs about certain products and services.

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An advertisement is essentially a piece of persuasive communication, persuasive because it seeks to influence public opinion of coaxing people into accepting what it has to offer. An advertisement is also a paid announcement intended to promote the sale of a product or service, to advance an idea or bring about some other effect desired by the advertiser. It is a general message, not forcing anyone to buy anything, but inviting everyone to identify, understand and adopt the use of goods, services, and ideas. The advertiser pays the medium to deliver the message. He chooses the paper, or a number of papers simultaneously, or the issue of a magazine that will publish his message. If the medium choose is TV or radio, he enjoys the freedom to select even the timing of the broadcast. But he has to pay heavily for exercising his choice. In this sense, newspapers, if not the other media, owe their existence to advertisers. The product advertised may vary from matches and toothpaste to farm houses and automobiles the services may range from restaurants and laundries to forgiven tours.

1.1 Theoretical Frame Work:

Variables:Independent Mediating Dependent

Advertising

Brand Awareness

Consumer Behavior

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1.2 Purpose statement:The purpose of conducting this study is to investigate the impact of advertisement on consumer buying behavior. In this study the working factors are brand awareness, brand images and consumer consideration. For determining the impact on investment quantitative study will be used to determine this relationship between independent variables advertisement and dependent variable consumer buying behavior. Where dependent variable consumer buying behavior can be generally defined on advertisement.

1.3 Objectives:
Main objective:Identify impact of advertising on consumer behavior.

Sub objective: Main objective of this research is to get the knowledge about consumers that how consumer attract towards brand through advertisement. Through this we want to know that how advertisement is the main key of any companies brand or product to compete with their competitors in market.

1.4 Significance:The main significance of this study is to analyze the attraction of consumer through brand awareness. Through this study we can analyze the choice of consumers regarding any products. We come to know that how advertisement creates brand awareness in customers mind and how consumer makes decision about any product. Through this study marketer can get knowledge that how they can capture the whole market of same brand. Marketer comes to knows how they can create picture of their brand in customers mind through advertisement. Policy maker can get the knowledge that which types of advertisement should be adopts to capture the consumer towards our brand.

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1.5 Hypothesis:H1: There is relationship between advertising and awareness. HO: There is no relationship between advertising and awareness.

2. Literature review:
In this article it is determine that how customers get awareness about product, risk assessment and how they take decision for the purchasing of the product. If customer have awareness of our brand in his mind then they associates themselves with our brand. He concludes that you should convey the positive attitude of brand and at least the customer heard about your brand and prefers your brand. rand equity, like the concepts of brand and added value (discussed in the section headed The brand construct'') has proliferated into multiple meanings. Accountants tend to define brand equity differently from marketers, with the concept being defined both in terms of the relationship between customer and brand as something that accrues to the brand. Feldwick (1996) simplifies the variety of approaches, by providing a classification of the different meanings of brand equity as the total value of a brand as a separable asset when it is sold, or included on balance sheet a measure of the strength of consumers attachment to a brand a description of the associations and beliefs the consumer has about the brand. The first of these is often called brand valuation or brand value, and is the meaning generally adopted by financial accountants. The concept of measuring the consumers level of attachment to a brand can be called brand strength (synonymous with brand loyalty). The third could be called brand image, though Feldwick (1996) used the term brand description. When marketers use the term brand equity'' they tend to mean brand description or brand strength. Brand strength and brand description are sometimes referred to as ``consumer brand equity'' to distinguish them from the asset valuation meaning. Brand description is distinct because it would not be expected to be quantified, whereas brand strength and brand value are considered quantifiable (though the methods of quantification are not covered by this article). Brand value may be thought to be distinct as it refers to an actual or notional business transaction, while the other two focus on the consumer. Aaker. D.A; (1991)

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This study is conducted to investigate Marketing communications may provide the means for developing strong, customer-based brand equity. Among marketing communication tools, advertising and price promotion have always played a pivotal role. The purpose of the study was to know the consumer thinking about search goods and experience goods. The effects of advertising expenditure and price promotion on brand equity and shift the spot light on the moderating role of product category. This research contains three constructs including advertising, price promotion and brand equity. To reduce the complexity, this study concentrates in the effects of advertising expenditures and price promotion. The integrated marketing communication is not included. brand equity is from a financial markets point of view where the asset value of a brand name is appraised (Farquhar et al., 1991; Swait et al., 1993). Customer-based brand equity definition approaches the customers perception and response to a brand name (Keller, 1993; Shocker et al., 1994; Lassar et al., 1995). The rationale for concentrating on customer based brand equity is that the power of a brand lies in what customers experiences over time (Keller, 2003). Brand equity is defined as brand assets linked to a brands name and symbol that add to, or subtract from, a product (Aaker and Joachimsthaler, 2000). More recently, brand equity has increasingly been defined in customer based contexts (Keller, 2001; Sihna et al., 2000, Yoo and Donthu, 2001, 2002; Yoo et al, 2000; Washburn and Plank, 2002). Customer based brand equity measure ment studies are constructed mainly on dimensions of brand equity proposed by Aaker (1991, 1996) and Keller (1993, 1998) as well as some other previous research findings (Yoo and Donthu, 2001, 2002) conceptual model comprises of four dimensions which are brand awareness, brand associations, perceived quality and brand loyalty. Keller. K. L ;( 2003) This research investigates the factors affecting customer value and behavioral intentions. The purpose of this study is to analyze how customer confused at the time when he is going to purchase thing at the base of brands name and brands image. To justify this thing he uses different factors like price of ht product, quality of product which consumers perceive and brand awareness. This study showed how price becomes involved in consumers value judgments.

Consumers consider not only the focal product price, but also the prices of alternative products. Customer value seems to be a useful concept in marketing consumer products.

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Although the automobile Industry has invested heavily in improving customer Satisfaction and service quality for years, commensurate Investment had not been given to customer value based Strategy development. Harkins, Latan6, and Williams 0980) first summarized the impact of identifiability on social loafing by observing that it "moderates social loafing" (p. 303) and then within the same paragraph proposed "that identifiability is an important mediator of social loafing Similarly, Findley and Cooper (1983), intending moderator interpretation, labeled gender, age, race, and socio- economic level as mediators of the relation between locus of control and academic achievement. Baron and Kenn; (1986) This study it is the role of brand awareness in consumer choices process. This replication used the same method, but with a different product category, a large sample, and a group that included experienced as well as inexperienced consumer. Result support the original finding that brand awareness is a dominate choice approach among awareness group subject. Subject choosing from s set of brand with marketed awareness differential showed an overwhelming preference for the high awareness brand. Despite quality and price differentiate. The majority of behavior (Rosenthal, 1990). The replication reported in this H&Bs subjects had never purchased peanut butter for them paper, employs the same procedures as H&B but uses a differ selves, and the rest indicated they had purchased peanut buttering product category (still a common, repeat purchase prod only a few times at most. In the replication study, more taunt), a slightly altered (inclusion of non-novices) and larger. (1) Inexperienced never bought or pendent researcher is more highly regarded (Monroe, 1992).they also made their decision faster than subject in the no awareness condition and sampled fewer brand. In a surprising finding, respondents use of the awareness choice heuristic did not seen to decline steadily over repeated choice trial, but rather showed something of a u shaped pattern with subject returning to the high awareness brand in the latter choice trial,. Little support was found for hoer and brown finding that subject in the no brand awareness condition chose the quality brand in on the final trial more often the those in awareness differential condition. Monroe.K; (1996) In this study it is verify that the impacts of advertising expenditure on brand awareness, brand choices and brand consideration. The purpose of authors study is to know that if the advertising expenditures are overspending or under spending to create brand awareness, brand choices and brand consideration. To clarify his discussion he used a dataset that can be used to study the full

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impact advertising expenditures on awareness, consideration, and brand choice. The marketing effort, translated partially to (1) perceived advertising spending, (2) distribution intensity and (3) store image, is considered as (a) antecedent in the formation of the level of knowledge of the brand name (Rossiter & Percy, 1987; Aaker, 1991) and (b) determinant of the associations linked to its image (Alba & Hutchinson, 1987; Yoo, Donthu & Lee, 2000). Apart from the direct effect of these precedents on both dimensions of brand equity, we try to demonstrate the indirect effect that brand image receives via the dimension of brand awareness. From the theoretical review on brand value we construct a theoretical model of causal relationships between the marketing efforts and the dimensions of brand equity. This is defined as a set of assets and liabilities linked to the brand, which adds or subtracts value to or from a product in its relationships with customers (Aaker, 1991). To contrast the model, the structural equations model is applied. In our case, the constructs or latent variables are two of the dimensions of brand equity, according to Aaker (1991). Following, Yoo et al. (2000), we analyze how each of the components of brand equity is affected previously by the perception of the market about the marketing effort the company develops concerning brands. To verify our model we carry out an empirical research of a consumers' sample of a consumption product (fruit juice) which we submitted to a questionnaire of attitudes. Once its reliability and validity was determined, this questionnaire could be used for the application of the structural model. Aaker, D.A. and G.S. Day (1974) the contrary, Procter & Gamble (P&G) ended up as the mar kept leader in almost all categories it introduced in China (Tunistra 2000).Although the few empirical studies on entry success (e.g., Gielens and Dekimpe 2007; Luo 1998; Pan, Li, and Tse 1999) have made important contributions to the topic, they suffer from at least one of the following limitations First, the studies focus on a single country China in most cases. Second, the studies use a restrictive definition of success, such as market share, which does not encapsulate degrees of success and failure. Third, the studies often focus on one particular industry. Fourth, the studies do not cover success or failure over time from the beginning of the libber alizarin of the Chinese and Indian economies. Against this setting, it is unclear whether these findings are generalist-able across industries and emerging markets. The current study attempts to analyze the success and failure of firms entering the major emerging markets of China and India. It addresses the following research questions, what drives the success of entry into China and India? Is entry into China

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more or less successful than that into India? And how do entry mode, entry timing, and firm size (firm-level variables) and economic distance, cultural distance, country risk, and country openness (country-level variables) affect success? Our contributions to the literature are as follows: First, we propose a richer measure for success and failure, which encapsulates longitudinal historical accounts. Second, was late our measure of success to underlying drivers that emerge from a vast body of interdisciplinary research over decades? Third, we focus on both the major emerging mar kits, China and India. Fourth, because of the paucity of sys thematic or syndicated data, we use the historical method (Golder and Tellis 1993) to collect data to answer these questions. Hoch .L;(1994)

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3. Data and Methodology 3.1Data 3. 1.1 Paradigms:


The term paradigms describe a collection of beliefs shared by scientists a set of agreements about how problems are to be understood, how we view the world and thus go about conducting research. There are three times of paradigms.1) positivism 2)interpretivism 3)pragmatism

Positivism:
Positivism supposes that true knowledge is based on experience of right mind and can be acquires by observation and experiment. Positivistic theorists adopt scientific methods as a means to generate knowledge. They believe on majestic reality. It is also called Scientific Method, Empirical Science, Post Positivism and Quantitative. In positivism the research approach which is used that is called deduction. In deduction research approach we revise or confirm the theory. Deduction includes 6 steps: 1) Theory 2) Hypothesis 3) Data Collection 4) Findings 5) Hypothesis Confirmed or Rejected 6) Revision of Theory.

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Interpretivism:
In this paradigm many actuality shaped by researchers preceding understanding and assumptions. it is also called Constructivism, Social Constructivism and Qualitative Research. Assumption identifies in this paradigm that individuals try to find and understanding of the world in which they live and work. They develop subjective meanings of their experiences or towards sure objects or things. These meanings are diverse and multiple, leading the researcher to look for the difficulty of views rather than narrowing meaning into few categories or ideas. The process of induction is to develop the theory. Induction process includes 4 steps: 1) General research question 2) Data collection 3) Findings 4) Generation of theory

Pragmatism:
It is also called mixed method research. In this paradigm the researcher is allowed to use quantitative and qualitative, methods, techniques and procedure of research that best gather their needs. it is concerned with application what works and solutions to the problems. The researcher work on pragmatism is agreed that research always occurs in social, historical, political and other contexts. They believe that they need to stop asking questions about reality and the law nature. They can adopt both qualitative and quantitative method and which they feel appropriate method that can be qualitative or quantitative. In my research I will adopt the positivism paradigm because my research is quantitative and research approach which I will use is deduction.

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3.1.2. Secondary data


For my research I will use secondary data. For the collection of data I will design close ended questionnaires and also conduct few interviews. The sample size will be 100 and the work is done on SPSS software.

3.2. Methodology
In my research I will use both Descriptive and Inferential analysis. Descriptive analysis includes Frequency Table, Graphical Representation by Bar chart, 5 Figure Summary, Box Plot. Inferential analysis includes Histogram, Correlation, and Regression test, chi square test. Frequency Table: Frequency table is used for numerical data which will be in the form of numbers. In this table we know only about the summary of things. Bar Chart: Bar chart is used for graphical representation of our collected data.

Five Figure Summary:


Five figure summary build for scale variable. It consists of Median, Minimum value, Maximum value, Lower quartile and Upper quartile.

Box Plot:
Box Plot makes for scale variable. It is used for numerical data. When there is much fluctuation occurs in data then outliers are comes. Outliers are small circles.

Histogram:
It is makes for scale variable and it is for numerical data continuous. Bell curve is makes from histogram. It tells us about normality of data.

Correlation:

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Correlation tells us about Relationship, Direction and Strength of variables. I will check in this test about relationship of two variables. I will check the effect of Dependent and Independent variable on each other.

Regression: In regression analysis I will use Nominal, Ordinal and Scale variable.

4. Limitations and delimitations


I will conduct my research work only in Lahore and Gujranwala due to some limitations. Noticeable limitation is the factor of time constraints due to which I will only surveyed the few Production industries of Lahore and Gujranwala. In addition limitation which I face is lack of transportation facilities

due to the weak financial support. So, I am conducting research study only in the Lahore and Guranwala.

5. Ethical considerations:
The key Ethical aspects that I will follow in my research are given bellow. It is sure that my owned personal biases and views did not get in the way of research. The data collected by respondents will be kept secret. Nothing is done that would cause physical and emotional hurt to respondent.

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6. References: Aaker, D.A. (1991), Managing Brand Equity: Capitalizing on the Value of a Brand Keller, K. L. (2003), Strategic Brand Management, Upper Saddle River, NJ: Prentice-Hall. Baron RM, Kenny DA (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. J. Pers. Soc. Psychol., 51(6): 1173 Aaker, D.A. and G.S. Day (1974), A Dynamic Model for Relationships among advertising, Consumer Awareness, Attitudes, and Behavior, Journal of Applied Psychology, 59, 281-286 East, R:Consumer Behavior: Advances and Applications in Marketing, Monroe, K.: On Replications in Consumer Research: Part 1.Journal Prentice Hall, London. 1996. Oliver RL (1997). Satisfaction: A Behavioral Perspective on Consumer. 1996. Arenas, Williams F. Contemporary Advertising. USA:Richard D. Irwin, A. Times Mirror Higher Education Group Inc. Company. Rossiter JR & Percy L (1987). Advertising and Promotion Management. Singapore: McGraw-Hill. Hoch, S. J., Drze, X. and Purk, M. E. 1994. EDLP, hilo and margin arithmetic. Journal of
Marketing, 58: 1627

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