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Effectiveness and Impact of Television Advertisements on
Indian Consumer Behaviour vis--vis Telecom Products
SUBMITTED TO
MANAGEMENT DEVELOPMENT INSTITUTE, MURSHIDABAD
CERTIFICATE
This is to certify that Mr. Siddhartha Arora, Entry number 15 PGPM 2014-16, a student of
PGPM in Management Development Institute, Murshidabad, has carried out the Summer
Internship presented in this report titled Effectiveness and Impact of Television
Advertisements on Indian Consumer Behaviour vis--vis Telecom Products upon fulfilment
of Post Graduate Program in Management for the batch 2014-16, under my guidance.
(Signature)
Dr. Sunil Giri
Date: 31st March 2016
DECLARATION
I, Siddhartha Arora, hereby declare that the project work entitled Effectiveness and Impact
of Television Advertisements on Indian Consumer Behaviour vis--vis Telecom Products
submitted towards the fulfilment of requirements for the award of Post Graduate Program in
Management is my original work and the dissertation has not formed the basis for award of
any degree, associate ship, fellowship or any similar title to the best of my knowledge.
Place: Murshidabad
(Signature of Student)
Siddhartha Arora
15 PGPM 2014-16
ACKNOWLEDGEMENT
Siddhartha Arora
PGPM 2014-2016
MDI Murshidabad
TABLE OF CONTENTS
Executive Summary ..................................................................................................................... 5
Chapter - 1 .................................................................................................................................. 6
1.1 Introduction ........................................................................................................................... 7
1.1.1.
1.1.2.
1.2.
Chapter -2 ................................................................................................................................. 11
2.1. Research Methodology ........................................................................................................ 12
2.1.1. Research Design ........................................................................................................... 12
2.1.2. Describing the Six Ws for Descriptive Research ............................................................. 12
2.1.3. Sample Selection .......................................................................................................... 13
2.1.4. Descriptive Summary: The Process Flow ....................................................................... 14
2.2. Demographic profiles of Respondents .................................................................................. 15
Chapter - 3 ................................................................................................................................ 16
3.1. Findings and Interpretation .................................................................................................. 17
3.1.1. Findings from Secondary Research ................................................................................ 19
3.2. Analysis ............................................................................................................................. 22
3.2.1. Qualitative Analysis ...................................................................................................... 22
3.2.2. Methodology Word Associations ................................................................................ 22
3.3. Quantitative Analysis .......................................................................................................... 25
3.3.1. Factor Analysis............................................................................................................. 25
3.3.2. Factor Analysis............................................................................................................. 29
3.3.3. Discriminant Analysis ................................................................................................... 32
Chapter - 4 ................................................................................................................................ 35
4.1. Results and Conclusion........................................................................................................ 36
4.2. Limitations of the Project..................................................................................................... 37
4.3. Future Scope of Study ......................................................................................................... 37
4.4. Learning from the Final Research Project ............................................................................. 38
References ................................................................................................................................. 39
Annexure 1 [Questionnaire] .................................................................................................. 40
EXECUTIVE SUMMARY
The Project aims at finding the impact of advertisements on the buying behaviour of the
consumers in the telecom business with special reference to Bharti Airtel Ltd.. The research
has been done with 100 respondents as the sample size for the quantitative analysis while for
the qualitative analysis, insights from 15 respondents were taken. The TV commercials are
found to be more memorable and influencing as compared to other forms of advertisements.
However, this study also revealed that social media advertisements are more influential these
days among the new generation. It could be observed from the research that the effectiveness
of Airtels advertisement in terms of communication and reach is moderate, and even if the
reach is more, the ads are not much recallable. This study is partly exploratory and partly
descriptive. Use of methods such as word associations and survey has been done as a data
collection technique. Finally, the respondents were classified into categories who had high
impact from TV commercials and those who had medium or low impact on the buying
behaviour. Factor analysis was also performed to reduce the dimensions and find the most
important features in a TV commercial that attracts the customers. The entire study revolves
around advertisements of the famous telecom Bharti Airtel Ltd. in India. However, as a
global view Bharti Airtel Ltd. has geographically different and exhaustive advertisement
strategies and taglines for customer attraction and retention.
Chapter - 1
1.1 Introduction
Project Title: Effectiveness Mapping and Impact Measurement of Advertisements on
Consumer Behaviour.
Description: To identify the impact that TV advertisements have on the buying behaviour of
consumers for telecom products and mapping the effectiveness of these advertisements in
terms of communication and reach.
This Research project aims at measuring the impact of advertisements of telecom products on
the consumer buying behaviour with special reference to Bharti Airtel Ltd. which is a
telecom major in India & Africa. Advertising is a marketing concept which aims to influence
the buying behaviour of customers. Whereas consumer behaviour is the process and activity
by which people select, purchase, evaluate and consume the product or service to satisfy the
need or want. In olden times marketers used different signs and symbols to market their
products and also to create awareness for the customers.
With the advancement and technology development now organizations focus to use print and
electronic media excessively. Use of different marketing promotional strategies has been
identified as an effective tool of creating awareness among the consumer population. Among
them is popular celebrity attachment with the particular brand. In developing countries where
majority of the population live in remote areas; the effects of Television (TV) advertisement
are very high. In these areas TV advertisement enhances the satisfaction level of products.
In order to study the influence of Advertisement in Consumer Brand Preference, three main
variables are considered with appropriate dimensions. They are
Information
Communication
Comprehension
Product: The aim of advertisement is to increase the demand for the new product
Consumer: Differentiation between the target audience and the target market segment
Idea
Tata Docomo.
Reliance Communications Limited
Bharat Sanchar Nigam Ltd.
Vodafone (strongest competitor)
Value added services like instant balance inquiry, caller line identification, 24 hour
recharge facility, multimedia messaging service, call wait & call Hold, Caller divert,
Airtel Live portal
SMS based information services
Voice mail services
Hello tunes, Ring tones,
Ringtones and hello tunes offers
Easy post-pay bill payment solutions
Enterprise Solutions
Place in the marketing mix of Airtel
Airtels penetration in India is quite impressive because the services and networks can be
found even in Indias remotest regions. Currently, gross subscriber base has pass the 200
million mark while the total wireless subscriber base for CDMA, GSM and WLL is about
162 million. Clearly, the customer base of Airtel is strong in India. It is also worth
mentioning that millions of the networks lines are added per year. Airtel enjoys a well
distributed network of distributors including even businesses like groceries and chemist
outlets. One of the things that have made Bharti Airtel a force to reckon in
telecommunication industry in India and Africa is that it has the strategy of making the first
moves and emerging as a winner. It has managed to buy Kuwaits Zain and Tata steel in the
past, making it a top 5 wireless carrier in the world by subscription.
Wider distribution network as compared to competitors
Network is widespread bringing many customers daily to Airtel
Fourth largest mobile operator in the world with presence in 20 countries
Promotion in the Marketing mix of Airtel
Airtel engages in aggressive marketing strategy ranging from traditional print media to social
network marketing. However, the companys recent rebranding efforts bombed in the market
and were not received positively. The company also engages in large scale TV and print
advertising. The company frequently uses big celebrities who endorse the services. The
company also managed to create its signature tune from Oscar winning musician
A.R.Rahman which has become one of the most downloaded tunes in India.
It is also interesting to note that even such seemingly redundant activities like providing
wallpapers and screensavers to computer users has proved a very effective marketing
strategy. The company also offers special discounts and offers to its subscribers.
Apart from that Airtel has been hiring several figures from Bollywood right from the
legendary Amitabh Bachhan to Vidya Balan as their brand ambassadors. The God of cricket,
Sachin Tendulkar too has been a part of their advertisement campaigns too.
The advantage of Airtel is that it goes regional with its advertisement efforts.
Some salient points about the promotions of Airtel are:
1.2.
Literature Review
A quantitative data collection of 300 questionnaires was used in the UK to assess consumer
behaviour to Vodafone in the paper The Motivational Reasons behind Consumer Choice
for Vodafone Products & Services by Sophie Alice Burge. The findings concluded that
most respondents visit Telecom Stores with friends. Consumer motivations to Vodafone
shops are most influenced by three factors: past experience/ familiarity; convenience of
location/travel; and friends and family. With a friendly staff, high quality of products and
services, a good atmosphere and a good reputation are the most important aspects for branded
telecom shops.
The Effects Of Outdoor Advertisements On Telephony Consumers - Gulmez
Mustafa, Karaca Sukran Kitapci Olgun. The results of the study indicate that outdoor
advertisements which create different ideas, which are effective in informing and persuading
people and which are sensitive to the environment can be viewed positively by consumers. In
particular, amongst consumers with higher educational and income levels, outdoor
advertisements are becoming striking and their visibility is increasing.
One of the study examines the relationships between TV advertising and patterns of products
and services choice among children TV Commercials and Choice of Products and
services among Telecom Consumers in Sabah, South Malaysia - Andreas Totu, Oswald
A. Igau, Murnizam Halik. This study examines the relationships between television (TV)
advertising and patterns of products and services choice among children. This relationship is
crucial in understanding the intricate interplay among several interrelated variables such as
TV viewing, preference for certain products and services. Specifically, the study investigates
the degree of recognition of adverts and patterns of products and services choice among lean,
overweight and obese children. This study uses an experimental test, but the assessment of
the effects of advertisements was undertaken through questionnaires. There were 50
participants involved in the experiment.
Internet-products and services advertising in social media. A case study on Facebook
in Egypt - Hazem Rasheed Gaber. The purpose of this paper is to explore the factors that
affect young Egyptian consumers' attitudes towards telecom-products and services
advertising in Facebook which is considered the most widely used social media network. 4
focus groups were conducted with young consumers from 2 Egyptian cities. Content analysis
was applied for the Egyptian telecom-products and services Facebook fan pages with the aid
of the NVivo software. The findings of this exploratory study have shown that young
consumers are accepting the idea of telecom products and services advertising in Facebook.
Moreover, the research provides a framework for the factors that lead to consumers'
engagement with the advertisements on Facebook. With the increase in the popularity of
social media websites among the young generation, telecom-products and services marketers
find it a more effective medium for advertising for their companies among that segment. The
research provides insights for marketers to make their advertisements more effective on
Facebook. The participants in the focus groups were young consumers in Egypt. It would be
useful to expand the sample and conduct the research in other developing and developed
countries with more consumers from other age groups.
Chapter -2
Who Who should be asked for the advertisements impact and understanding their
effectiveness?
The selection of respondents is done in line with the Target population of Bharti Airtel Ltd..
Since Bharti Airtel Ltd. is the reference for telecom products, its target population was
under scrutiny. Bharti Airtel Ltd. targets a wide range of customers including
The respondents are asked about their usage frequency of telecom products and services, the
different telecom products and services they used, how many ads they can recall for Bharti Airtel
Ltd. and certain questions on the types of advertisements and the features that they would prefer
in them. This would be helpful to identify features of advertisements which impact the consumers
and so will help in building an effective TV commercial.
The information was taken with online surveying through floating of google forms within
the timeline specified for data collection.
The customers were contacted in the institute through face to face interactions for the
qualitative data analysis and for the quantitative analysis, the respondents were surveyed
through an online questionnaire.
Why- Why are we tapping the respondents for obtaining these details?
Only the customers or respondents can help us measure the effectiveness of an advertisement
through communication and reach to the customers. The more the number of advertisements
respondents can recall the more is the memorability of that advertisement. Hence, the
customers are tapped to measure the advertisement effectiveness.
Way- The way is through partly exploratory and partly descriptive research process.
Population: The population for this research study the set of all customers of Bharti
Airtel Ltd. India which include all the target customers of Bharti Airtel Ltd..
Sampling Unit: The customers were taken from Murshidabad region with specific
focus on Jangipur. Hence, only the Bengal-based advertisements of Bharti Airtel Ltd. have
been into scrutiny.
Sample Size: The sample size was 100 for the respondents.
Phase 1
[September]
Phase 2
[October- November]
46
11
31 - 40
years
41 and
above
10
0
15 - 22
years
23 - 30
years
Total
The respondents were majorly from the age band of 23-30 years.
0 - 3 lacs
3 - 6 lacs
6 - 9 lacs
45
9 lacs and above
The respondents were majorly from the income group of 0-3 lacs per annum and most of the
respondents were students.
Occupation Category of
Respondents
40
30
37
28
20
Total
10
0
6
Salaried
Self
Employed
Student
Chapter - 3
23.29%
23.29%
10.96%
8.22%
12.33%
21.92%
connection
Character dialogue to
tell a story
Relatable characters
and situations
Simple and upbeat
storyline
Taglines and Jingles
The above data representation shows that 23.29% of the respondents believe that audience
appropriate humour is one of the features of an advertisement that invokes interest in them
regarding a product or a brand. The other set of 23.29% of the respondents find Taglines and
jingles to be of interest and memorable to them in a TV advertisement. The next most
important feature of a television advertisement is character dialogue which tells a story.
16.44%
1.37%
Newspaper/Magazine/Pa
15.07% mphlets
Radio Commercials
Social Media
Advertisements
TV Commercials
The above chart shows that most influential advertisement type for telecom products and
services telecom players are social media advertisements with 38.365 of respondents
agreeing to this fact. While the next best advertisement type that creates an influence over the
consumer is the use of TV commercials. Newspapers, magazines, pamphlets and billboards
being other type of advertisements
15
10
5
0
0-2 times
3-4 times
4-6 times
The above chart shows the frequency of visit to telecom products and services telecom
players in a month by the respondents who fall in four age groups since telecoms usually
target a wide range of customers on the basis of their demographic profiles. However, it can
be observed that the most frequent users are those who are young.
70.42%
Total
30.00%
20.00%
10.00%
0.00%
22.54%
4.23%
0 to 2
3 to 5
6 to 8
2.82%
Above 8
The above chart shows the number of television commercials that can be recalled by the
respondents. Mostly, the respondents could recall advertisements in the range of 0 to 2. This
is an indication that not all ads of Bharti Airtel Ltd. are memorable and could be recalled by
the respondents. Thus, an insight can be taken from this data that some investments or
changes need to be made in the television advertising for Bharti Airtel Ltd..
The company also earns revenue as an investor in telecom tower infra, as an operator and
sub-lessee of telecom spectrum. The companys business model is slightly different from
other telecom- products and services companies. In addition, sub-leasing fees and marketing
fees are calculated as a proportion of sales.
Some suggest that advertisements affect user negatively especially young users. Lutz argues
that the manner in which advertisers modify the meaning of words is able to have a harmful
effect on languages and how it is used. The author believes that the relationship amid humans
and any form of culture can be complicated. (Lutz, 446) However there is no denial that there
is a relationship between behavior and advertising. On the other hand, it is not convincing on
the directness and similarity about the relationship between media and advertising.
Lutz continues to argue that advertisers use language to imply a great thing about products
and services without promising anything at all. With extensive skill, advertisers can create an
advertisement that makes us to believe that a particular product is better than it is without
having to lie about it.
According to Machesney, adverting must build a brand while speaking with one voice. They
develop economies in the creative process, while maximizing its local effectiveness and it
increases the companys speed of implementation. It is the key to determining success of the
organization. The ability to identify the key of an ad that contributes to its success leads to
maximization of the economy of scale.
Critics argue that commercialization of all fields of society, increases in consumption and
wastes resources; privatization of public space and the negative influence on the lifestyle is
due to overrated advertising. Advertising to some extent has contributed tremendously to
destroying non-material possessions.
Public service adverting is an adverting technique used in promoting goods and services. It is
crucial in forming, educating and motivating the public about non commercial issues like
conserving energy, deforestation and political ideology. It is an influential and educational
tool that is capable of motivating and reaching larger audiences.
Adverting justifies its existence when used in the public interest. It is too much a powerful
tool to be used for commercial purposes only. Infomercials are televisions commercials with
a longer format; they are very useful in creating an impulse purchase, so that the moment the
consumer observes the presentation, it is followed by immediate purchase of the product
through the advertised toll free number. Infomercials describe, display and frequently
demonstrate products and their features.
They commonly have testimonials from industry professionals and consumers. According to
Williamson, press advertising is an influential means of advertising.
It describes advertising in printed medium such as newspapers, journals or magazines. This
involves everything from media with a broad readership base. It allows private companies or
individuals to purchase a small targeted advertisement at a low fee to advertise their products
and services. Celebrity branding is another powerful form of advertising that mainly focuses
on using a celebrity popularity to gain recognition for the product.
Celebrities are frequently involved in advertising campaigns like televisions or print adverts
to advertise general or specific program. This can lead to great success if it is endorsed by
various companies, and practiced prudently. Online advertising is the most recent and
productive form of advertising. It reaches a massive audience at the same time being
affordable, as compared to other mediums. This is achieved by the use of World Wide Web to
express the purpose of delivering marketing messages to draw customers.
3.2. Analysis
3.2.1. Qualitative Analysis
The technique of word associations have been used for qualitative analysis of data. The word
association test is a common method within psychology which has been used to reveal the
private world of an individual. In its simplest form a series of disconnected words (stimulus
words) are projected orally or in writing to the respondents who must respond with the first
word which comes to mind (response words). These associations reveal the respondents
verbal memories, thought processes, emotional states, and personalities. Psychologists
examine the nature and probabilities of the response words, and sometimes the amount of
time it takes to respond.
Word associations are a form of projective techniques in which participants are tested for
their unstructured responses. A brand name can be used to find out what ones first
impression of the brand it, as well as other traits or experiences that they associate the brand
with. This method can be used as an indirect way of investigating the feelings, beliefs and
attitudes that participants have with a brand, but might otherwise be unable to express while
filling out a survey. Such a technique will allow us to uncover how well the brand resonates
with the user, as well as their interpretation of the brand.
A total of 15 participants were interviewed and their responses grouped according to similar
words. To ensure that our participants were representative of our target audience, we
interviewed both males and females, ranging from ages 15-45 because Bharti Airtel Ltd.
targets a wide range of customers in India.
Finally, we created a summary map to show the more common associations and to also paint
a more conclusive picture of the associations that Bharti Airtel Ltd. has in the minds of our
participants. This was also done for finding out variables to be used for the quantitative
analysis.
The advertisements pictures were also shown to the respondents for them to write their
feelings about the ads, what attracted them the most, and whether they were able to recall the
entire advertisement.
The above TV advertisement uses emotional appeal along with the functional one to display
the low price and affordable services from Bharti Airtel Ltd..
To test the strength of the associations, we tabulated the responses from all participants and
placed the mean of each association on the map above.
From word associations, we could gather the perceptions of people regarding telecoms and
specifically Bharti Airtel Ltd.. People were conscious about the growing health issues and
concerns about growing intake of telecom products and servicess. However, they were aware
about the campaigns by Bharti Airtel Ltd. like
Sponsoring national and international sports events (Olympics, World Cup, Champions
League etc)
Actively participating in local/communal events
Established the Hellenic World foundation for Children
Some features that were analysed from the qualitative analysis of respondents about TV
advertisements were:
Audience appropriate humour
Build an emotional connection
Character dialogue to tell a story
Relatable characters and situations
Simple and upbeat storyline
Taglines and Jingles
The correlation matrix gives us the correlation between two variables. It can be observed
from the matrix below that there is a high correlation between the variables V4 (Convincing
Capability of TV commercials) and V5 (Better and more appealing than other types of
advertisements) with a value of 0.614 following the second highest correlation among the
variables V2 (Ad Duration) and V4 (Convincing Capability of a TV Commercial) with a
value of 0.527.
Correlation Matrix
V1
V2
V1 1.000 .183
V2 .183 1.000
V3
V4
Correlation V5
V6
V7
.363
.123
.035
.273
.441
V8
-.091
V3
.363
.308
V4
.123
.527
V5
.035
.264
V6
.273
.313
V7
V8
.441 -.091
.092 .193
.224
.407
.473
.287
.224
.407
.473
.287
.020
.020 1.000
Bartletts test of sphericity can be used to test the null hypothesis that the variables are
uncorrelated in the population; in other words, the population correlation matrix is an identity
matrix. The test statistic for sphericity is based on a chi-square transformation of the
determinant of the correlation matrix.
A large value of the test statistic will favour the rejection of the null hypothesis. If this
hypothesis cannot be rejected, then the appropriateness of factor analysis should be
questioned.
Another useful statistic is the Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy.
This index compares the magnitudes of the observed correlation coefficients with the
magnitudes of the partial correlation coefficients. Small values of the KMO statistic indicate
that the correlations between pairs of variables cannot be explained by other variables and
that factor analysis may not be appropriate.
.000
The null hypothesis, that the population correlation matrix is an identity matrix, is rejected by
Bartletts test of sphericity.
The value of KMO statistic is 0.667 which is larger than 0.5 (> 0.5) and Sig. Value is 0.00.
To determine how many components (factors) to extract we need to consider a few pieces
of information provided in the output. Using Kaisers criterion we are interested only in
components that have an eigenvalue of 1 or more.
Compone
nt
38.092
38.092 3.04
7
38.092
33.007
1.41 17.625
55.717 1.41 17.625
0
0
3
.989 12.361
68.078
4
.819 10.243
78.320
5
.685
8.564
86.884
6
.473
5.913
92.797
7
.338
4.221
97.018
8
.239
2.982 100.000
Extraction Method: Principal Component Analysis.
55.717
From the Eigen Value Plot it is observed that only 2 components have Eigen Value
greater than 1. The total or cumulative percent of variance shown by these two
components is 55.717%.
Communalities
Initial
Extraction
V1
1.000
.774
V2
1.000
.370
V3
1.000
.473
V4
1.000
.734
V5
1.000
.613
V6
1.000
.337
V7
1.000
.548
V8
1.000
.609
Extraction Method: Principal Component Analysis.
Component Transformation Matrix
Component
1
2
1
.867
.498
2
-.498
.867
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Component
1
V1
V2
V3
V4
V5
V6
V7
V8
2
-.048
.564
.505
.836
.769
.437
.168
.746
.878
.227
.467
.189
.147
.382
.721
-.231
V1
V2
V3
V4
V5
V6
V7
Price
Quality of VASs
Product Range and Variety
Brand Name
Quality of Products
Packaging
Attractive Advertisements
Correlation Matrix
V1
V2
V1 1.000 .148
V2 .148 1.000
V3
.141
.056 1.000
V3
V4
V5
V6
V7
.141 .025 -.302 .542 .160
.056 -.373 .099 -.043 -.276
.330
.127
.136 -.032
.028 -.003
.213 1.000
.000
The null hypothesis, that the population correlation matrix is an identity matrix, is rejected by
Bartletts test of sphericity.
The value of KMO statistic is 0.411 which is smaller than 0.5 and Sig. Value is 0.00.
To determine how many components (factors) to extract we need to consider a few pieces
of information provided in the output. Using Kaisers criterion we are interested only in
components that have an eigenvalue of 1 or more.
Communalities
Initial
Extraction
V1
1.000
.821
V2
1.000
.805
V3
1.000
.622
V4
1.000
.774
V5
1.000
.478
V6
1.000
.747
V7
1.000
.425
Extraction Method: Principal Component Analysis.
Compone
nt
1
2
3
28.340
20.131
28.340 1.98
4
1.40
48.471
9
28.340
20.131
1.27 18.277
66.748 1.27 18.277
9
9
4
.957 13.668
80.416
5
.730 10.426
90.842
6
.414
5.919
96.761
7
.227
3.239 100.000
Extraction Method: Principal Component Analysis.
24.080
66.748
46.129
From the Eigen Value Plot it is observed that only 3 components have Eigen Value greater
than 1. The cumulative percent of variance shown by these two components is 66.748%
V1
.544
-.007
.143
V2
.154
.003
.626
V3
-.036
.526
.223
V4
-.051
.470
-.240
V5
-.363
.317
.127
V6
.371
.241
-.063
V7
.135
-.133
-.414
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Component Scores.
The above table shows loadings on the three components of the variables. The variables with
highest loadings in one component form the major part of that component. Hence, for
Component 1, the highest loadings have been on the variables V1(0.544). For Component 2,
the highest loadings of the variables are V3 (0.526), V4 (0.470).For component 3, the highest
loadings are on V2 (0.626)
Thus, we can extract three main factors which the consumers find important for visiting
telecoms like Bharti Airtel Ltd.
F1 = Price and budget telecom player
F2 = Product Range with Brand Name
F3 = Quality of VASs
Finally, The Variables were reduced into three important factors that the affect the
consumers perception towards buying of products/services from telecom products and
services telecom player companies.
Functio
N
1
Eigenvalu
e
a
.700
Eigenvalues
% of
Cumulative
Canonical
Variance
%
Correlation
100.0
100.0
.642
.211
.846
-.180
Frequency of Visit>Number of Advertisements
.947
-.545
.477
.195
.838
-.026
-1.506
To find which respondents are in high ad impact or medium ad impact category, we use the
outputs of unstandardized coefficients in the discriminant function and means of canonical
variables. The means of canonical variables gives us new means for the transformed group
centroids.
Thus, the new mean for Group 1 (Medium Impact) is -1.110 and for Group 2 (High Impact)
is 0.614.The midpoint of these two is not 0. This also gives us a new decision rule for
classifying any new respondents in the two groups so as to decide whether to pitch in for
sales and use costly methods or not. If the discriminant score of a customer falls to the left of
the midpoint we classify as Group 2 and if it falls to the right of the midpoint we classify as
Group 1 Customer.
Thus, a respondent with a positive discriminant score will have higher impact of
advertisements on the buying behaviour as compared to a respondent with a negative
discriminant score.
V9
1
1
-1.110
2
.614
Unstandardized canonical discriminant functions evaluated at group means
The discriminant score can be found using canonical discriminant function coefficient
table. The equation for discriminant score that can be used is
Z = 0.195 (Frequency of Visit) + 0.838 (Ad Recall number) - 0.026 (Age of Respondent)
1.506
a
Classification Results
V9
Predicted Group
Total
Membership
1
Origina
Count
1
2
1
2
22
7
84.6
4
40
15.4
2
14.9
85.1
a. 84.9% of original grouped cases correctly classified.
26
47
100.0
100.0
The above table shows the classification accuracy as 84.9% of the model. This level of
accuracy may not hold for all future classifications of new cases. But it is a pointer towards
the model being a good one assuming the input data was relevant and scientifically collected.
Output of Discriminant Analysis
The output of discriminant analysis is a discriminant score which would classify new
customers into Group 1 or Group 2 customers and would also specify the misclassified cases
if any in the data.
We could also find that the independent variables used are relatively significant predictors of
the dependent variable.
Chapter - 4
Finally, it can be concluded that advertisements make a memorable impact on the minds of
the consumers and TV commercials create influence and direct consumer buying behaviour.
Advertisement effectiveness can also be measured through the sales of a store or telecom
player, but it is at the side of the company. Therefore, we measure TOMA from the
consumers perspective.
References
from http://www.sciedupress.com/journal/index.php/bmr/article/viewFile/805/389
Wen-Ko Liang.Rou-An Wou(2013). Analysis of Telephony Consumers. Retrieved
September
20,
2015,
from
http://ir.lib.stust.edu.tw/bitstream/987654321/18207/1/PID2338685.pdf
Emily Bosma,Dana Sipola, and Elyse Pylman. College Students Perceptions
ofVodafone
in
the
UK.
Retrieved
Spetember
25,2015,
from
http://www2.gvsu.edu/bosmae/graphics/CAP%20115%20paper.pdf
Sophie Alice Burge(2013). The Motivational Reasons behind Consumer Choice in
Branded Telecom Products & Services. Retrieved October 5,2015, from
http://www2.warwick.ac.uk/fac/cross_fac/iatl/reinvention/issues/bcur2013specialissue
/burge/
Hazem Rasheed Gaber(2014).Telecom products and services advertising in social
media. A case study of Facebook in Egypt. Retrieved
December 4, 2015, from
http://jbrmr.com/admin/content/pdf/i-20_c-182.pdf
Gulmez Mustafa, Karaca Sukran Kitapci Olgun (2013).The Effects Of Outdoor
Advertisements On Consumers. Retrieved December
22, 2015 from
https://www.researchgate.net/profile/Olgun_Kitapci/publications
William D. Wells (1997).
Measuring Advertising Effectiveness (Advertising and Consumer
Psychology Series .
Annexure 1 [Questionnaire]
Advertisement Effectiveness and Impact on Consumer behaviour for telecom
products and services telecom players
* Required
1. Do you consume Telecom Products and Services? *
o
Yes
No
Airtel
Vodafone
Idea
AIRCEL
Loop Mobile
Tata DOCOMO
BSNL
Reliance
Other:
3. What type of advertisements for telecom products and services affect you the most
(in terms of buying)?*
o
TV Commercials
Radio Commercials
Billboards
Other:
1 - Strongly
Agree
Television ads
are visually
appealing and
engaging
The duration of
a TV ad makes
an impact on
the viewer
TV
commercials
convey the
intended
message easily
I am convinced
to buy a product
easily through a
TV
advertisement
TV ads are
better and
more
appealing
than any
other types
TV ads
develop an
emotional
connect with
the viewer
TV ads are
memorable
The characters
in an
advertisement
are the
influencing
factors
2 - Agree
3 - Neutral 4 - Disagree
5 - Strongly
Disagree
5. What is the frequency of your visit to telecom products and services store in a month? *
o
0-2 times
3-4 times
4-6 times
6. How many ads can you recall for Bharti Airtel Ltd.? *
o
0 to 2
3 to 5
6 to 8
Above 8
1 - Strongly
Agree
I visit Telecom
products and
services stores
only because
of the Price
they offer.
Quality of
VASs is an
important
consideration
for visiting a
Telecom
products and
services
store.
Product Range
and Variety are
important
Only Brand
Name is enough
for my visit to a
telecom
products and
services store.
The Quality of
products
matters to me
the most.
I visit Telecom
companies
because of their
Product
packaging
Attractive
2 - Agree
3 - Neutral 4 - Disagree
5 - Strongly
Disagree
1 - Strongly
Agree
2 - Agree
3 - Neutral 4 - Disagree
5 - Strongly
Disagree
Advertisements make me
visit telecom products
and services store.
8. Please specify your age group. *
o
15 - 22 years
23 - 30 years
31 - 40 years
41 and above
Student
Self Employed
Salaried
Home Maker
Not Employed
0 - 3 lacs
3 - 6 lacs
6 - 9 lacs
11. What feature of a TV advertisement evokes interest in you to try out a product? *
Submit
Celebrity