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A study on assessing the impact of television advertisement campaign "Love is

growing" of Honda activa 5G and the other factors influencing the purchase
intention of consumers in Lonavala and Panvel region

1
CHANDRASHEKHAR SINGH CHOUHAN

1
PGDM Student, IFEEL College, Lonavala

Contact: 8959862387

E-mail:chandrashekhar.s.c04@gmail.com

Abstract

Television (TV) advertisement is considered one of the most effective medium to influence the
purchase decision of consumers. The aim of this study is to analyze the impact and effectiveness
of Television advertising on purchase intention of consumers for Activa 5G scooters. This
research paper will prove the relation between Television advertising and sales of Honda activa
5G scooters. The data, for this research purpose was collected from current customers and
prospects of lonavala and panvel region through offline and online questionnaires. A total of 63
responses were taken via both mediums.

Keywords: Television advertisements, Advertising effectiveness, Sales of Honda activa 5G


1. Introduction

1.1 Industry overview

Automobile is one of the largest industries in global market. Being the leader in product and
process technologies in the manufacturing sector, it has been recognized as one of the drivers of
economic growth. India is the second largest producer of the two-wheelers. The two wheeler
segments contribute the largest volume amongst all the segments in automobile industry. The
country stands next to China and Japan in terms of production and sales respectively. The
industry is growing at 30% annually. In FY 2018, India achieved another milestone by becoming
the first market to have reported sales of more than 20 million two-wheelers in a year. Sales grew
14.8% over FY 2017 – a seven-year high. In the race of two-wheelers, Honda Activa (country’s
largest selling scooter for over a decade) is leading by establishing a 400,000 unit lead over its
old rival Hero Splendor. (Babu & Premchand, 2013)

1.2 Company overview

Honda is the world’s largest manufacturer of two wheelers, Recognized over the world as the
symbol of Honda Two Wheelers, the ‘Wings’ arrived in India as Honda Motorcycle and Scooter
India Pvt. Ltd. (HMSI), a 100% subsidiary of Honda Motor Company Ltd., Japan, in 1999. Since
its establishment in 1999 at Manesar, District Gurgaon, Haryana, Honda has lived up to its
reputation of offering the highest quality products at the most reasonable price. Despite being
one of the youngest players in the Indian two-wheelers market, Honda has become the largest
two wheeler manufacturer as well as the second largest two-wheelers company in India. On
February 17 2016, Honda inaugurated the “World’s largest only scooter plant" at Vithalapur ,
Gujarat with annual capacity of 1.2 million units. The new plant will employ approximately 3000
people within first 2 years of commercial production (Honda).

2. Need for the study


The purpose of this study is to examine the influence of Television advertising on buying
behavior of public, while making purchase of Honda active 5G. While conducting research, due
importance was given to other factors also, which are also has significant influence on buying
decision of consumers such as (Age, Gender, Performance, Radio, Outdoor advertisements, Fuel
efficiency). Television is often called “King” of the advertising media, since a majority of people
spend more hours watching television per day in comparison to any other medium. Television
uses the combination of sight, colour, sound and motion to create an effect. It makes its appeal
through both the eye and the ear. Television occupies and important place in the promotion of
products due to its extensive spread worldwide in general. (Mohideen, 2016)

3. Literature review

3.1 Impact of television commercials

Advertising is an announcement regarding the launch of a product, service or idea through the
usage of basically the most popular mass media. Best medium is selected based on its popularity
and the one which has maximum reach. Television remains the most effective medium for
reaching today’s customers and it also is most efficient for introducing people to brands.
Advertising through Television allows marketers to show and tell a wide audience about
business, product, or service. Television appeals to the literate as well as the illiterate and this is
one feature of TV that makes it unique and different from other mediums. (sharma N. r., 2016)

3.2 Analysis of advertisements on buying behaviour of consumers on two-wheeler


industry

Advertising has become an integral part of our society. In a way, it has become embedded in our
daily lives. People cannot go through a newspaper, listen to radio or watch television, without
reading, hearing or seeing some advertisement or commercial. People see them on billboards, on
buses, in trains, in magazines, on match boxes, some messages aimed at influencing us or
making us aware of the advertiser’s product. In 2015 advertisers world-wide spent an estimated
US$529.43 billion on advertising. Advertising's projected distribution for 2017 was 40.4% on
TV, 33.3% on digital, 9% on newspapers, 6.9% on magazines, 5.8% on outdoor and 4.3% on
radio. Internationally, the largest ("big four") advertising-agency groups are Interpublic,
Omnicom, Publicis, and WPP (Wire and Plastic Products). (shaik, 2017)

3.3 Impact of advertising on purchase of two wheelers

Advertising consists of all the activities involves in presenting to a group, a non personal, oral or
visual, openly sponsored message regarding disseminated through one or more media. This is a
powerful element of the promotion mix. Essentially advertising means spreading of information
about the characteristics of the product to the prospective customers with a view to sell the
product or increase the sale volume. Moped industry council is founded in1971. It is the national,
nonprofit, trade association that represent the responsible interest of the major two wheeler
distributor, the manufacturer and retail outlet of two wheeler related products and services. The
member of MIC account for more than 90% of all the new moped two wheeler sold in India
There are four category of membership in MIC:MEMBERS- the manufacturer and distributor of
moped. (sharma V. s., 2018)

3.4 TV ads impact on customer purchase intention

Result of the study shows that, due to quality features shown in TV advertisements of product,
consumer purchase intention can be increased. While it was also found that the entertaining
celebrity association, content credibility of product shown in TV advertisements, effective
advertisement repetition and appeals is positively correlated with consumer purchase intentions.
In addition in to this, product accessibility information, emotional appeal, and effective
message theme are the most individual critical elements influencing this purchase intention.
The companies are experiencing an intense competition and unable to entice their customers.
Focusing on these aspects of ads help the promoters to make their Ads more eye-catching and
achieving the all-important goal of purchase intention. (Nabeel, May 2014)
4. Testing of hypothesis

H0: There is no impact of any variables on purchase intention of customer’s.


H1: There is an impact of television advertisements on purchase intention of customer’s.

H2: There is an impact of independent variables on purchase intention of customer’s.

H3: There is an impact of moderating variables on purchase intention of customer’s.

Independent Variables Dependent Variable

 Outdoor advertising  Television Advertisements


 Radio
 Fuel efficiency
 Performance

Moderating variable
 Age
 Gender

The independent variables shown in the figure are representing the factors other than TV ads for
buying decisions of customer’s. While the dependent variable factors shows the focused factor
used for this research purpose. The moderating variable factors have an effect on relation
between dependent and independent variables while making a buying decision, it modifies the
relationship between them.
5. Research Methodology

 Findings and Interpretation:

Variables Categories Percentage


Age 18-25 77%
25-35 18%
35 & above 5%
Gender Male 64%
Female 36%
Annual Income 0 – 1 lakh 57.8%
1 – 3 lacs 21.2%
3 lacs & above 21%

Since we have to find the impact of TV ads on purchase intention of customer’s, we have
assumed that it relates to influence created by TV ads on consumer’s buying decision. So for that
reason my dependent variable is ‘Impact of television advertisements’ and all others are
considered as independent variables. While moderating variables effects independent and
dependent variables connection.

 Data Analysis

o Reliability

Scale: ALL VARIABLES

Case Processing Summary


N %
Cases Valid 63 98.4
Excluded 1 1.6
Total 64 100.0

a.) List wise deletion based on all variables in the procedure.

o Reliability Statistics

Cronbach's Alpha Based on


a
Cronbach's Alpha Standardized Items N of Items
-.244 .004 4

a.) The value is negative due to a negative average covariance among items. This
violates reliability model assumptions. You may want to check item codings.

o Item Statistics

Mean Std. Deviation N


Outdoor activity 3.75 1.015 63

Radio 1.40 .525 63


Performance 4.40 .708 63
Fuel efficiency 4.75 .439 63

o Inter-Item Correlation Matrix


Outdoor
activity Radio Performance Fuel efficiency
Outdoor activity 1.000 .041 -.239 -.183

Radio .041 1.000 -.127 .445


Performance -.239 -.127 1.000 .070
Fuel efficiency -.183 .445 .070 1.000
o Summary Item Statistics
Minimu Maximu Maximum /
Mean m m Range Minimum Variance N of Items
Item Means 3.571 1.397 4.746 3.349 3.398 2.273 4
Item Variances .500 .193 1.031 .839 5.356 .142 4
Inter-Item -.026 -.172 .102 .274 -.596 .008 4
Covariances
Inter-Item .001 -.239 .445 .684 -1.861 .057 4
Correlations

o ANOVA with Friedman's Test


Sum of Friedman's
Squares df Mean Square Chi-Square Sig
Between People 26.214 62 .423
Within Between Items 429.683a 3 143.228 153.953 .000
People Residual 97.817 186 .526
Total 527.500 189 2.791
Total 553.714 251 2.206
Grand Mean = 3.57

a.) Kendall's coefficient of concordance W = .776.

 Conclusion

The current study was based on the effectiveness of advertisement of Honda Motor Company
Ltd. I think further research can be done on a large scale with large sample size not only in
automobile industry, but also covering other products or in other cities with respect to the same
scooter industry. I found some interesting facts, among them one is that well known brand name
is more popular than the unknown brands. People have a high awareness about the well known
brand. Majority of respondents prefer to purchase a well known brand products. Therefore
customers do not want to take any risk to purchase unknown brands. This study will help the
dealers to understand the customers’ expectation and by fulfilling retention of customers is
possible. And also this study helps the researcher for further future study as a base. It also helps
the reader to have an idea about the best media of advertisement for two wheelers. Study helps
the advertising agency to know the customer perception towards the ad on different media’s and
about the effectiveness of Advertisement. Through this study one can understand TV is the best
media for advertising about two wheelers. Hence more concentration and investment can be
made in TV ad which will not go in vain.

6. Bibliography
 Articles
o A study on effectiveness of advertisement on four wheelers of Tata Motors Ltd.
o Impact of advertising on purchase of two wheeler-A study with reference to
women in Chennai
o A study on the impact of advertising on purchase of two wheelers by women in
Panipat City