Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
2008-2009
Submitted By : Narendra
B B ! '(I
!*$NO+,E-GEMEN.
This work bears the imprints of many persons whose valuable assistance and insightful suggestions have made this project worthy. With sincere thoughts and deep sense of gratitude, I would like to take this opportunity to express my sincere to thanks to our Mr !"hi"h Sa#ena, whose able guidance helped to me to give the present shape of the project. I feel immense pleasure in extending my gratitude to all for motivating me for completing my project. I shall ever remain grateful to all for motivating me for completing my project. I shall ever remain to all of them for there wishes ,which inspire me to come out with flying colors in the path of honesty and humanity. I am also thankful to my parents who has helped me. Present work would not have been possible without their kind support.
arendra !umar
TABLE OF CONTENTS
S.No. / 2 0 1 2 3 4 8 9 /0 // /2 /0 /1 /2 /3 Topic "ertificate #eclaration Introduction $ Topic %xploration in #epth &tudy Profile 'esearch (bjective 'esearch )ethodology 'esearch #esign #ata "ollection )ethod &ling &cheme $ &ling &i*e +imitations ,ield Work Tabulation - "harting ,indings &uggestions "onclusion !nne#ure 5 Tables .uestionnaire /ibliography
/4
CERTIFICATE
This is to certify that all relevant work pertaining to presented miniature project on : " Impact of Advertising on The Buying Behavior of Consumers for FMCG" FMCG
was completed by Narendra Kumar, He has done hard work to complete the project. His work is absolutely original in nature.
DECLARATION
This is for general declaration purposes only that all relevant work pertaining to presented miniature project on : " Impact of Advertising on The Buying Behavior of Consumers for FMCG" FMCG has been solely completed by me. Besides unavoidable links to certain references the overall work is absolutely original in nature.
,ast )oving "onsumer 1oods 2,)"14 goods are popularly named as consumer packaged goods. Items in this category include all consumables 2other than groceries-pulses4 people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, household accessories and extends to certain electronic goods. These items are meant for daily of fre5uent consumption and have a high return. 0 major portion of the monthly budget of each household is reserved for ,)"1 products. The volume of money circulated in the economy against ,)"1 products is very high, as the number of products the consumer use is very high. "ompetition in the ,)"1 sector is very high resulting in high pressure on margins. ,)"1 companies maintain intense distribution network. "ompanies spend a large portion of their budget on maintaining distribution networks. ew entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands. )anufacturing can be outsourced. 0 recent phenomenon in the sector was entry of multinationals and cheaper imports. 0lso the market is more pressuri*ed with presence of local players in rural areas and state brands.
/ %rob9em:Need ;eco8nition
:ow do you decide you want to buy a particular product or service9 It could be that your #8# player stops working and you now have to look for a new one, all those #8# films you purchased you can no longer play; &o you have a problem or a new need. ,or high value items like a #8# player or a car or other low fre5uency purchased products this is the process we would take. :owever, for impulse low fre5uency purchases e.g. confectionery the process is different. In the first step the consumer has determined that for some reason he-she is not satisfied 2i.e., consumer<s perceived actual condition4 and wants to improve his-her situation 2i.e., consumer<s perceived desired condition4. ,or instance, internal triggers, such as hunger or thirst, may tell the consumer that food or drink is needed. %xternal
factors can also trigger consumer<s needs. )arketers are particularly good at this through advertising, in6store displays and even the intentional use of scent 2e.g., perfume counters4. 0t this stage the decision6making process may stall if the consumer is not motivated to continue 2see )otivation above4. :owever, if the consumer does have the internal drive to satisfy the need they will continue to the next step.
2 Information "earch
&o we have a problem, our #8# player no longer works and we need to buy a new one. What<s the solution9 =es go out and purchase a new one, but which brand9 &hall we buy the same brand as the one that blew up9 (r stay clear of that9 "onsumer often go on some form of information search to help them through their purchase decision. &ources of information could be family, friends, neighbours who may have the product you have in mind, alternatively you may ask the sales people, or dealers, or read specialist maga*ines like What #8#9 to help with their purchase decision. =ou may even actually examine the product before you decide to purchase it. 0ssuming consumers are motivated to satisfy his or her need, they will next undertake a search for information on possible solutions. The sources used to ac5uire this information may be as simple as
remembering information from past experience 2i.e., memory4 or the consumer may expend considerable effort to locate information from outside sources 2e.g., Internet search, talk with others, etc.4. :ow much effort the consumer directs toward searching depends on such factors as3 the importance of satisfying the need, familiarity with available solutions, and the amount of time available to search. To appeal to consumers who are at the search stage, marketers should make efforts to ensure consumers can locate information related to their product. ,or example, for marketers whose customers rely on the Internet for information gathering, attaining high rankings in search engines has become a critical marketing objective.
good history with a particular brand or their friends may have had a reliable history with one, but if the decision falls between the &ony #8# or Toshiba then which one shall it be9 It could be that the a review the consumer reads on the particular Toshiba product may have tipped the balance and that they will purchase that brand. "onsumers< search efforts may result in a set of options from which a choice can be made. It should be noted that there may be two levels to this stage. 0t level one the consumer may create a set of possible solutions to their needs 2i.e., product types4 while at level two the consumer may be evaluating particular products 2i.e., brands4 within each solution. ,or example, a consumer who needs to replace a television has multiple solutions to choose from such as plasma, +"# and "'T televisions. Within each solution type will be multiple brands from which to choose. )arketers need to understand how consumers evaluate product options and why some products are included while others are not. )ost importantly, marketers must determine which criteria consumers are using in their selection of possible options and how each criterion is evaluated. 'eturning to the television example, marketing tactics will be most effective when the marketer can tailor their efforts by knowing what benefits are most important to consumers when selecting options 2e.g., picture 5uality,
brand name, screen si*e, etc.4 and then determine the order of importance of each benefit.
1 %urcha"e deci"ion
Through the evaluation process discussed above consumers will reach their final purchase decision and they reach the final process of going through the purchase action e.g. The process of going to the shop to buy the product, which for some consumers can be as just as rewarding as actually purchasing the product. Purchase of the product can either be through the store, the web, or over the phone. In many cases the solution chosen by the consumer is the same as the product whose evaluation is the highest. :owever, this may change when it is actually time to make the purchase. The >intended? purchase may be altered at the time of purchase for many reasons such as3 the product is out6of6stock, a competitor offers an incentive at the point6of6purchase 2e.g., store salesperson mentions a competitor<s offer4, the customer lacks the necessary funds 2e.g., credit card not working4, or members of the consumer<s reference group take a negative view of the purchase 2e.g., friend is critical of purchase4. )arketers whose product is most desirable to the consumer must make sure that the transaction goes smoothly. ,or marketers whose product is not the consumer<s selected product, last chance marketing efforts may be worth exploring, such as offering incentives to store personnel to >talk up? their product at the checkout line.
centers and follow6up market research are useful tools in helping to address purchasers< concerns. 0s we<ve seen, consumer purchasing is 5uite complex. In our next tutorial, /usiness /uying /ehavior, we will see that marketers must also have a thorough understanding of how business purchase decisions are made.
service. 'eference groups are particular groups of people some people may look up towards to that have an impact on consumer behaviour. &o they can be simply a band like the &pice 1irls or your immediate family members. (pinion leaders are those people that you look up to because your respect their views and judgements and these views may influence consumer decisions. &o it maybe a friend who works with the IT trade who may influence your decision on what computer to buy. The economical environment also has an impact on consumer behaviourA do consumers have a secure job and a regular income to spend on goods9 )arketing and advertising obviously influence consumers in trying to evoke them to purchase a particular product or service. Peoples social status will also impact their behaviour. What is their role within society9 0re they 0ctors9 #octors9 (ffice worker9 and mothers and fathers also9 "learly being parents affects your buying habits depending on the age of the children, the type of job may mean you need to purchase formal clothes, the income which is earned has an impact. The lifestyle of someone who earns BCDEEEE would clearly be different from someone who earns BCDEEE. 0lso characters have an influence on buying decision. Whether the person is extrovert 2out going and spends on entertainment4 or introvert 2keeps to themselves
and purchases via online or mail order4 again has an impact on the types of purchases made.
:owever, whether a consumer will actually carryout each step depends on the type of purchase decision that is faced. ,or instance, for minor re6purchases the consumer may be 5uite loyal to the same brand, thus the decision is a routine one 2i.e., buy the same product4 and little effort is involved in making a purchase decision. In cases of routine, brand loyal purchases consumers may skip several steps in the purchasing process since they know exactly what they want
allowing the consumer to move 5uickly through the steps. /ut for more complex decisions, such as )ajor ew Purchases, the purchasing process can extend for days, weeks, months or longer. &o in presenting these steps marketers should reali*e that, depending on the circumstances surrounding the purchase, the importance of each step may vary.
F "ulture has an impact on the company. F )arketers should take into account )aslows hierarchy of needs.
Im<act of !d7erti"in8 on *u"tomer"'6M*G)In recent times, the word G0dvertisingG has become a fiercely mooted topic. 0dvertising has positive as well as negative, social and economic impacts on our society. "onsidering advertising as a public welfare is a positive social impact whereas exposing women as a sex tool comes at the negative side. 0s far as economic factors are concerned, funding for the media and stimulating an active and competitive economy, are the major examples. 0ssorted techni5ues are enforced for persuading consumers that they want the product which is being advertised. These techni5ues usually give attention to the benefits that would be brought to the consumers rather than focusing on the actual products. ,or instance, an automobile advertisement adverting the mechanical attributes of a vehicle, most likely concentrates the exhilaration, reputation and social progression it may bring to the buyer. This swarming advancement is habitually sexual, or involving the opposite gender to attract the consumers with the glamorous women-menGs fancy car. There are various blames that advertising is causing a negative social impact on the lives. The chief unfavorable judgment for advertising is that it hales the public to buy things that they are not their real want. It
is arrogated that advertising plays with emotions and encourages people to think that buying and depleting are the activities of life. 0ccording to advertisers, they state that people are capable enough to set their mind and no one can force them to buy anything which they dislike or which they think is not a necessity. 0dvertisers also think that there are positive impacts of advertising on our society and culture. ,or example, it can be used to generate awareness among the public that which product is (! or to which they should say (. In other words, advertising also acts as an educator in the sense that it educates people what is good and what is bad for them and puts a ceiling on the harmful products like smoking and drinking etc. There are not only social benefits of advertising, but it also has some economic advantages. Without advertising, the media, including newspapers, television and radio would never be much strong. 0dvertising provides revenue for commercial mediums which would otherwise need to be funded by the actual consumer of these mediums. &o, we can see a major economic infrastructure based around advertising, in which the big companies fund and subsidi*e the commercial media by the way of advertisements. The major economic negative aspect of advertising is that it boosts the price of goods and services. The source of this contention is that, when organi*ations subsidi*e the mass media with advertising, we,
the purchaser, subsidi*e advertising by compensating a grossly increased price for heavily advertised goods and services. 0n easy example of this is that a box of (mo washing powder generally costs around two to three dollars while the market price of the product would be seven to eight dollars. The fact behind this is that the remaining proportion goes in heavy advertising in television and print media. &o, the impact of advertising on our society is in a jumble form, depending on the functions and implementations of numerous campaigns. (ur society and the marketing of products depend very badly upon advertising. The companies have become much dependent of advertising that even its negative impacts can never outweigh the many positive social and economic effects. "onsumers are increasingly exposed with advertising campaigns in which they are often confronted with ideali*ed representations of the world 2e.g., ideali*ed situations, attractive models4. 0 large amount of studies has shown that ads presenting ideali*ed images can have strong effects on consumer satisfaction and welfare. :owever, obtained results were not consistent with each other. &ome studies found that advertising had an increasing effect on consumer satisfactionA other studies found that advertising had a negative impact and led to consumer dissatisfaction. o research has ever tried to
resolve why conflicting results were obtained in this area of research. )oreover, there exists no extant consumer behaviour model on the effects of advertising on consumer satisfaction. The objective of this project is to construct such a model, which should be able to 2a4resolve why conflicting findings have been obtained in the past, 2b4 formulate the conditions under which consumer satisfaction or dissatisfaction will occur, and 2c4 delineate the processes that play a role during comparison with ideali*ed standards in ads. To achieve this objective, I will 2H4 start from existing social comparison theories in social psychology, 2C4 derive hypotheses from these theories with respect to the self6evaluative effects of advertising, 2I4 test these hypotheses in an advertising context, 2J4 construct the intended consumer behaviour model on the basis of the tested hypotheses, and 2D4 test the validity of the consumerbehavior model by using a meta6 analytic study. The scientific, managerial, and public policy relevance of this project will be discussed in the proposal.
STUDY PROFILE " Impact of Advertising on The Buying Behavior of Consumers for FMCG" FMCG
arendra !umar CD6ED6CEEK to HC6EL6CEEK
H H H
/areilly $Pilibhit
H H
HEE Pre6coded &tructure .uestionnaire. Primary 3 /y &elf supported by a group of friends. &econdary 3 Msing 8arious Internet Websites. arendra !umar HI6EL6CEEK
F -ata *o99ection
RESEARCH OB ECTI!E
The primary goal of our project is to explore , study and investigate the Impact of 0dvertising on The /uying /ehavior of "onsumers for ,)"1 sector in /areilly $ Pilibhit. Thus the basic objective was to explore and study the mindset of ,)"1 consumers to evaluate the impact of advertising on their purchasing decisions. Ob&ecti7e"3 The study was conducted with the following objectives3 H i" To gauge the Impact of 0dvertising on ,)"1 consumers. E ii" To estimate the effectiveness aggressive strategies adopted by companies to promote their products.
RESEARCH #ETHODOLO$% ,or this study, the survey was conducted in the entire city of /areilly $ Pilibhit covering all the categories including students, working professionals etc. The sample was randomly selected and respondents were in the age group of HN to LEO years. The responses of the respondents were recorded on a pre6coded structure 5uestionnaire. The data in the coded form was collected, compiled and analy*ed, While selecting the respondents due care was taken to give proper representation to female respondents as well as different age groups $ occupational categories.
Re&earch De&i'n 0s the problem is very well defend and clear, a conclusive research design was used moreover the conclusion was to be drawn on the basis of generali*ed result, so the descriptive design was selected for the purpose of collecting analy*ing and interpreting the data obtained, on some specific points. 0 plan of what data to gather, from whom, how and when to collect the data, and how to analy*e the data obtained. This is a systematic plan to coordinate archaeological research to ensure the efficient use of resources and to guide the research according to scientific methods. 0lso known as a market research briefing, this is a basic plan which guides the data collection and analysis phases of the research project. It acts as a framework which details the type of information to be collected, the data sources and the data collection procedure. Thus 'esearch design can be thought of as the structure of research 66 it is the 7glue7 that holds all of the elements in a research project together.
Data Collection #etho( In order to collect the data from the respondent of some specific points, a nondisclosure, structured, 5uestionnaire was developed . #ata collection is a term used to describe a process of preparing and collecting data 6 for example as part of a process improvement or similar project. #ata collection usually takes place early on in an improvement project, and is often formali*ed through a data collection Plan which often contains the following activity. H. Pre collection activity P 0gree goals, target data, definitions, methods C. "ollection P data collection I. Present ,indings P usually involves some form of sorting analysis and-or presentation. 0 formal data collection process is necessary as it ensures that data gathered is both defined and accurate and that subse5uent decisions based on arguments embodied in the findings are valid. The process provides both a baseline from which to measure from and in certain cases a target on what to improve. %rimary -ata
#ata collected specifically for a research project "ollect when secondary data are Mnavailable Inappropriate can be collected through a number of different methods sometimes more than one method can apply to a single problem %rimary -ata Source" Primary data collection is necessary when a researcher cannot find the data needed in secondary sources. )arket researchers are interested in primary data about demographic-socioeconomic characteristics, attitudes-opinions-interests, awarenessknowledge, intentions, motivation, and behavior. Three basic means of obtaining primary data are observation, surveys, and experiments. The choice will be influenced by the nature of the problem and by the availability of time and money. Sur7ey" &urveys or 5uestioning involve using a 5uestionnaire 2data collection instrument4 to ask respondents 5uestions to secure the desired information. .uestionnaires may be administered by mail, over the telephone, by computer, or in person. +imitations of surveys include opportunities for error in construction and administering of a
5uestionnaire, expense, and time needed to conduct a survey. 'espondents may not respond, may be unable to respond, or may give misleading responses.
LI#ITATIONS
The sample was chosen on the basis of convenience $ judgement sampling might not have been the true representative of the universe. Though every care has been taken to make it most representative. &ome respondent 2&pecially low educated4 had not filled the 5uestionnaire themselves and asked their children etc which may cause a deviation in the results as the administrators always play an important role in formulating the purchase decision. The possibility of biasing factor and impact of opinion leader could not be eliminated as the re6respondents were human being.
FIELD +OR,
The respondents were given 5uestionnaire either by contacting personally or by making calls at houses, offices and shops so as to cover all classes of respondent.
;e"<on"e :
15%
20%
Due"tion : !re your <urcha"in8 deci"ion" ba"ed on the brandin8 of the <roduct F 2a4 yes 2b4 no 2c4 "annot &ay ;e"<on"e :
20%
23%
57%
Yes
No
Cann't Say
Due"tion : -o you be9ie7e that =hate7er i" "ho=n in !d" i" com<9ete9y trueF 2a4 2b4 2c4 2d4 yes no &omewhat "annot &ay
;e"<on"e :
5%
15%
Due"tion : +hat affect" your <urcha"in8 deci"ion" =hi9e <urcha"in8 con"umab9e"F 2a4 0dvertising 2b4 .uality 2c4 "ost 2d4 /rand +oyalty ;e"<on"e :
Due"tion : -o you thinE u"e of ce9ebritie" a" Brand !mba""ador" im<act the "a9e" of a <roductF 2a4 =es 2b4 o 2c4 Perhaps 2d4 "anGt &ay ;e"<on"e :
45 40 35 30 25 20 15 10 5 0
44
27 21
No
6IN-INGS
SALIENT FINDINGS
H
)ajority of the target audience is compelled to watch ads. People make purchasing decisions with brand image in mind. (pinion on the authenticity of the content of the ad is divided. While making purchase decisions, costing rules the roost, while 5uality and the advertising are the close competitors. )ost people are assured that celebrities being used as brand ambassadors positively impact the sales of a product.
CONCLUSION
*onc9u"ion
)ajority of the target audience seems to be positively affected by advertising hysteria of the business giants. That is why People make purchasing decisions with brand image in mind. :owever, it is observed that (pinion on the authenticity of the content of the ad is divided. With kind of economic recession prevailing in the country , , costing rules the roost as far as making a purchase decision is concerned , while 5uality and the advertising are the close competitors. )ost people are assured that celebrities being used as brand ambassadors positively impact the sales of a product. I finally infer that 0dvertising has very positive impact on the mindset of ,)"1 consumers and there are good reasons why big business houses never hesitate to put tremendous amount of money in their advertisement campaigns.
!nne#ure"
.!B,ES
Re&pon(ent& Occ/pation Re&pon(ent Re&pon&e /usinessman 3* &erviceman 31 &tudent 23 (ther 10 #onthl4 B/('et For Con&/0a2le& Re&pon(ent /elow DEE DEE 6 HEEE HEEE6HDEE HDEE O Act/al B/4er o. The Fa0il4 Re&pon(ent )yself &pouse "hildren &enior )embers Le3el o. E(/cation Re&pon&e 14 1+ 40 27 Re&pon&e 25 47 * 22
Re&pon(ent Re&pon&e Post 1raduate and above 27 1raduate 31 th 8 To QII 25 th /elow 8 17 Re&pon(ent& Inco0e $ro/p Re&pon(ent E6DEEE DEEE6HDEEE HDEEE6CDEEE Re&pon&e 24 4* 25
CDEEE6above 5 Reach o. A(& to the Tar'et A/(ience Re&pon(ent Yes No Sometimes Often Re&pon(ent Yes No Can't Say Re&pon&e 20 25 40 15 Re&pon&e 57 23 20
Deci&i3e )ara0eter A..ectin' the )/rcha&e Re&pon(ent Advertisin !"a#ity Cost $rand %oya#ty Re&pon&e 27 24 41 4
In.l/ence o. Cele2ritie& a& Bran( A02a&&a(or Re&pon(ent Yes No (erha's Can't Say Re&pon&e 44 21 27 )
CUSTO#ER 5UESTIONNAIRE
Due"tion 1 +ho MaEe" the %urcha"in8 -eci"ion" for .he fami9y 'a) )yself 'b) &pouse 'c) "hildren 'd) &enior )embers Due"tion 2 +hat i" your month9y bud8et for *on"umab9e Good" 'a) /elow DEE 'b) DEE 6 HEEE 'c) HEEE6HDEE 2 2 2 4 4 4 2 2 2 2 4 4 4 4
While watching T8, do you also watch the 0ds or skip them 2a4 2b4 2c4 =es o &ometimes 2#uring )atch etc.4 2 2 2 2 4 4 4 4
!re your <urcha"in8 deci"ion" ba"ed on the brandin8 of the <roduct F 2a4 2b4 2c4 yes no canGt say 2 4 2 2 4 4
Due"tion 8 -o you be9ie7e that =hate7er i" "ho=n in !d" i" com<9ete9y trueF 2a4 2b4 2c4 2d4 yes no somewhat cant say 2 2 2 2 4 4 4 4
Due"tion 9 +hat affect" your <urcha"in8 deci"ion" =hi9e <urcha"in8 con"umab9e"F 2a4 2b4 2c4 2d4 0dvertising .uality "ost /rand +oyalty 2 2 2 2 4 4 4 4
Due"tion /0 -o you thinE u"e of ce9ebritie" a" Brand !mba""ador" im<act the "a9e" of a <roductF 2a4 2b4 2c4 2d4 =es o Perhaps "anGt &ay 2 2 2 2 4 4 4 4
BIBLIO$RA)H%
The work presented here has been prepared and polished with the help of several sources. I feel it my moral responsibility to enlist the used sources, thereby the list is given below. I feel extremely obligated to the content creators of these resources and truly appreciate their spirit.
www.Wikipedia.org www.essays.se www.topics.vlex.com www.scribd.com www.udel.edu/alex/chapt6.html
www.learnmarketing.co.uk/consumer.htm
Reference Book/News Paper Author 1. Consumer behaviour 2. Marketing Management 3. International Marketing 4. Sales and Distribution Management