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BUSINESS RESEARCH METHODS

Impact of advertising on consumer buying

behaviour

Submitted to: - Prof. Deeppa.k Submitted by: -

Deepika (19BSP0784)
Krishna Sai (19BSP0931)
Gaurav B (19BSP0947)
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TABLE OF CONTENT

Sr.no Content Pg.no

1. ACKNOWLEDGEMENT 3

2. INTRODUCTION 4

3. PROBLEM STATEMENT 6

4. SCOPE OF THE STUDY 7

5. LITERATURE REVIEW 8

6. OBJECTIVE 9

7. SIGNIFICANCE OF THE 10
STUDY
8. METHODOLOGY 11
9. SAMPLING 12
10. RESEARCH HYPOTHESIS 13
11. DATA ANALYSIS 18
12. CONCLUSION 23
13. ANNEXURE 24
14. REFERENCES 27
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ACKNOWLEDGEMENT

We take this opportunity to express our gratitude to all those who

helped us and without their support it would not have been possible
for us to complete the project.
It’s our immense pleasure to express our sincere and deep sense of
gratitude to our supervising guide and mentor, PROF.DEEPPA K,
for her sustained enthusiasm, creative suggestions, motivation and
guidance throughout my study. Without her guidance, we would
not have a proper understanding of the subject.

We would also like to thank the customers for their time and
cooperation.
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Business Research Report

Introduction
The impact of mass communication is felt all over the globe through advertising,
newspaper, internet, music, films, videos, magazines, movies and billboards. Among
all these media, advertising is one that has lasting impact on viewer’s mind, since its
exposure is much broader. It is the main source of communication tool between the
producer and the consumer. Advertising is a subset of promotion mix and is one of the
4ps in the marketing mix which comprises of product, price, place and promotion
Advertising is a promotion strategy which serves as a major tool in creating product
awareness in the mind of the consumer individual behaviour, life style in the long run
as well as the culture of the country. A company can enhance the brand of their
product by investing in promotional activities in order to compete in a consumer
market that is dominated through advertising. The primary aim of advertiser is to
reach consumers and influence their awareness, attitude and buying behaviour. Their
major preoccupation is to keep individuals interest in their product through spending
on advertising. They also need to understand what influence customer’s behaviour.
Advertising has the potential to contribute to brand choice of consumers. Advertising
impact on brands change frequently in people’s memory. Brand memories consist of
those associations that are related to brand name in consumer’s mind. These brand
cognition influence consideration, evaluation and final purchase. Consumer behaviour
should be analysed for effective advertising, to know why consumers behave in
particular ways under certain circumstances. And also to know the factors that
influence consumer behaviour, especially the economic, social and psychological
aspects. Advertising also creates advertisement which carry emotional bond with
consumers. Positive emotional appeals also provide a strong brand cue and stimulate
category based processing.

Consumers try to categorize the brand association with the existing memory, when
thousands of products are faced by them and might reposition memories to a brand
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image and perception towards new products. In this way, they can categorize latest
information in particular brand and shore accordingly in their memory. Some
organizations do not attach importance in advertising their products and this have
adverse effect on their output in terms of sales of product. Others use different
advertising media like television, internet (face book; email) newspaper, billboard,
magazine etc. to convey their product message to their target audience. Companies
spend major part of their budget on advertising strategies to promote their
products/services. These advertisement strategies influence consumer buying
behaviour.
NIKE which is a market leader of sports brand. Nike also endorse various football
teams as well as football clubs such as Barcelona FC. The “just do it” campaign of
Nike has been since nearly three decades and has got done worldwide fame. Nike
successfully uses event marketing in the realm of fitness to bring more brand
recognition to its name. This sponsorship ensures that consumers see the Nike swoosh
in places other than television advertisement, on products and in stores. They also
sponsor nationwide athletic tournaments.
ADIDAS which is a market challenger. Adidas also sponsors many football teams i.e.
Real Madrid. ADIDAS markets through various marketing vehicles but the majority
of marketing is concentrated on televisions and product placements. The creative team
of Adidas is known to pump adrenaline in their customers through ads which are well
made, very creative and filled with energy. The Brand ambassador of Adidas is Lionel
Messi.
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Problem statement

The interference of the consumer behaviour by the advertisements has been on the rise
in the last decade. This has brought about the changing tides in the levels of consumer
and product relation; it has increased the level of impulse buying by the consumer,
made people to develop shopping disorder, and made others to develop a diverse habit
of being addicted to advertisement campaigns.
As companies are spending large amount of investment on the advertisement because
they want to keep their product at the top of the customer’s mind. Advertisement has
proven to be a successful tool for the communication but companies are still in the
confusion that what kind of ingredients should be there and how do these
advertisements will help to change the consumer buying behaviour.
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SCOPE OF THE STUDY

The study examined the impact of Nike and Adidas advertising on consumer buying
behaviour. The conclusions drawn from the study are based on the responses given by
the consumers in a specific area like shopping malls, online survey etc. This study will
be helpful in getting an insight into the perception of consumers on Advertisements
and its impacts on changing the buying behaviour of consumers. The study adopted a
survey research design through the administration of structured questionnaire based on
a five point Likert scale to the sampled respondents for the study.
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LITERATURE REVIEW
In every organisation, the primary responsibility is to gain the knowledge about its
customers. To keep a deep eye on customers, marketers are focusing customer rule
that is customer is their first preference. To fulfilling the needs and wants of the
customer and seek the better opportunities in the market. Researchers find out that
marketers need to understand the following four things in order to satisfy their
customer –
 Marketers must know that customers make rational decisions so that they can
get the best product available in the market.
 Customer sometimes can also make irrational decisions and they are very
impulsive and can be attracted towards the advertisement.
 In the same way emotional factor of advertisement can also put an influence on
the mind of customers.
 In the last sometimes customer can also buy as a problem solver, they looking
or buy the product which can solve their problem.

Emotional Response One of the effective tools of integrated marketing

communication that emotionally motivate consumers to buy products is
advertising. The motive of advertising is to create brand awareness, Preference and
selection of products or services. Attitudes towards the advert is the most
influencing theory in marketing and advertising research. The attitudes that is
formed towards advertisement help in influencing consumer’s attitudes toward
brand until the purchasing intention. Since the goal of advertising is to form
positive attitude towards advertising and the brand, then a positive emotional
response to an advert may be the best indicator of effective advertising. That is the
reason why the basic aim of advertising is to encourage people to buy product and
create awareness. The consumer ability to recall the brand advert is another
component of effective advertisement that creates emotional response.
Consumer Buying Behaviour Consumer buying behaviour is defined as the
mental, emotional and physical activities that people engage when selecting,
purchasing using and disposing of products and services in order to satisfy need
and desires. It includes purchasing and other consumption related activities of
people engaging in exchange process. Consumer buying behaviour is affected by
economic factors such as income expenditure pattern, price of products price of
complementary products, substitute goods and elasticity. It is also affected by
psychological perception, attitudes and learning. Consumer behaviour is affected
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by social and cultural factors that affects individuals buying decision but
determines the kind of product to buy.

OBJECTIVE OF STUDY

This study attempt to determine the impact of advertising on consumer

buying behaviors. In specific terms, the objective of the study are to:

 Identify the effect of emotional response on consumers buying behavior.

 To identify the impact of advertisement of Nike and Adidas on consumer

awareness.

 To identify the importance of advertisement on building consumer perception

about the product
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SIGNIFICANCE OF STUDY

The study would be of great benefit to the following -

 Companies/Organizations: The study would help organizations to find

possible measures/strategies to advertise their products and services. It would be of
great interest and valuable to marketing managers and help them to sell their
products/services and make reasonable profits to the company/organization.

 Consumers: It will create brand awareness to motivate them emotionally to buy

the product.

The study will also help the Nike and Adidas to understand the consumer behaviour
while purchasing their products so that they can devise appropriate strategy to
advertise their product in a best possible way to gain the market advantage
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METHODOLOGY

A survey research design was used in this study to gather information or data from
consumers through questionnaire instrument. The population of study comprised of all
the customers in Amanora Park Town. The sample size is 40.  The questionnaires were
collected immediately it was filled by respondents to avoid loss of questionnaires.
Properly filled questionnaires by respondents of secondary school level and above
were used for analysis.
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SAMPLING

Data collection process and analysis of NIKE

 Nike will be collecting data from “NIKE PLUS WEBSITES” on its customer
and their daily routines which they have been used to research in new
development products
 Nike will also use research papers such as questionaries’ interviews in order to
get feedback for their product
 Nike uses advertising, sales promotions, advertising campaigns, public relations
publicity and sales offer to build awareness and brand image, loyalty
 Target audience: Between 18-35 years only on males and females

Data collection and analysis of ADIDAS: -

 We collect data at various points of when you interact with Adidas online. This
includes when you actively give data, such as when you sign-up or sign-in to
your Adidas account; and when you passively leave data, such as when you
browse products on Adidas website.
 Target audience
 Between 12-34 years consumers specially involved in sports
  Market skimming strategy that is the price of the product depends upon its
colour, look
 The most basic distribution strategy adopted by Adidas is to concentrate
resources at the place where most profitable customer segment is available.

RESEARCH HYPOTHESIS
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H0: There is no relationship between advertisement and consumer awareness.

H1: There is relationship between advertisement and consumer awareness.

H0: There is no relationship between advertisement and consumer perception.

H1: There is relationship between advertisement and consumer perception.

Analysis of Customers
 Do you watch advertisements daily?
o Never
o Often
o sometimes
o Regular

Do you watch advertisement daily

Cumulative
Frequency Percent Valid Percent Percent
Valid never 13 31.0 31.0 31.0
often 13 31.0 31.0 61.9
sometimes 10 23.8 23.8 85.7
regular 6 14.3 14.3 100.0
Total 42 100.0 100.0

 Information shown in Advertisements is enough for decision making?

o Sometimes
o Never
o Always
o Maybe

Information shown in advertisements is enough for decision

making
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Cumulative
Frequency Percent Valid Percent Percent
Valid sometimes 8 19.0 19.0 19.0
never 11 26.2 26.2 45.2
always 18 42.9 42.9 88.1
maybe 5 11.9 11.9 100.0
Total 42 100.0 100.0

 Which brand advertisement do you think are more appealing to customers?

o Nike
o Adidas
o Others

Which brand advertisement do you think are more appealing

Cumulative
Frequency Percent Valid Percent Percent
Valid Nike 21 52.5 52.5 52.5
Adidas 17 42.5 42.5 95.0
others 2 5.0 5.0 100.0
Total 40 100.0 100.0

 Which brand name comes in your mind when you talk about sports shoes?
o Nike
o Adidas
o Others

Which brand name comes in your mind when you talk about
sports shoes
Cumulative
Frequency Percent Valid Percent Percent
Valid Nike 21 52.5 52.5 52.5
Adidas 17 42.5 42.5 95.0
3 2 5.0 5.0 100.0
Total 40 100.0 100.0
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 Are Adidas shoes more comfortable than Nike?

o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree

Are Adidas shoes more comfortable than Nike

Cumulative
Frequency Percent Valid Percent Percent
Valid strongly agree 12 30.0 30.0 30.0
disagree 10 25.0 25.0 55.0
neutral 2 5.0 5.0 60.0
agree 8 20.0 20.0 80.0
strongly agree 8 20.0 20.0 100.0
Total 40 100.0 100.0

 Which Brand will you prefer for long lasting use?

o Nike
o Adidas

Which brand will you prefer for long lasting use?

Cumulative
Frequency Percent Valid Percent Percent
Valid Nike 23 54.8 54.8 54.8
Adidas 19 45.2 45.2 100.0
Total 42 100.0 100.0

 What do you look out for in an advertisement?

o A familiar brand with a trust
o Product information
o Price information
o Celebrities and famous people
o Discounts and deals
o Humour
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o Social message

What do you look out in an advertisement?

Cumulative
Frequency Percent Valid Percent Percent
Valid A familiar brand with a trust 4 9.5 9.5 9.5
product information 4 9.5 9.5 19.0
price information 6 14.3 14.3 33.3
celebrities and famous 12 28.6 28.6 61.9
people
Discounts and debts 7 16.7 16.7 78.6
humour 6 14.3 14.3 92.9
social message 3 7.1 7.1 100.0
Total 42 100.0 100.0

 Are you more willing to buy products online or in-store?

o Online
o In-store

are you more willing to buy products online or in-store

Cumulative
Frequency Percent Valid Percent Percent
Valid online 20 47.6 47.6 47.6
in store 22 52.4 52.4 100.0
Total 42 100.0 100.0

 Why do most of the people prefer Nike more over Adidas?

o Quality
o Brand Image
o Price
o Comfort

Why do most of the people prefer Nike more over Adidas

Cumulative
Frequency Percent Valid Percent Percent
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Valid quality 11 26.2 26.2 26.2

brand image 13 31.0 31.0 57.1
price 11 26.2 26.2 83.3
comfort 7 16.7 16.7 100.0
Total 42 100.0 100.0

 Does the advertising affect your shopping trend?

o Strongly Disagree
o Disagree
o Neutral
o Agree
o Strongly agree

Does the advertising affect your shopping trend?

Cumulative
Frequency Percent Valid Percent Percent
Valid strongly disagree 4 9.5 9.5 9.5
disagree 9 21.4 21.4 31.0
neutral 11 26.2 26.2 57.1
agree 10 23.8 23.8 81.0
strongly agree 8 19.0 19.0 100.0
Total 42 100.0 100.0

 Which company’s advertisements are more relatable and depict real life situations?
o Nike
o Adidas

Which company's advertisements are more relatable?

Cumulative
Frequency Percent Valid Percent Percent
Valid Nike 22 55.0 55.0 55.0
Adidas 18 45.0 45.0 100.0
Total 40 100.0 100.0
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Data Analysis
Kaiser Meyer Olkin
It is the test that indicates how good the factors are chosen which means closer to 1 indicates that
they are good.
Here, from KMO test it is indicated with a value of 0.774 which is close to 1 and hence the chosen
factors are good.

Bartlett’s Test
It checks for the normality of the data P value < 0.05 indicates it is significant.
Here, according to the Bartlett’s Test P value is less than 0.05 and hence it is significant.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .774
Bartlett's Test of Sphericity Approx. Chi-Square 300.646
Df 55
Sig. .000

Communalities
It shows the percentage of variation explained by each variable lesser the communality, the variable
does not have strong relationship with the other variable.
Here, the statement “are you more willing to buy products online or in-store”
has the extraction value of 0.368 which reflects less than 1 or not closely related to 1 stating that the
statement is irrelevant.

Communalities
Initial Extraction
Do you watch advertisement 1.000 .773
daily
Information shown in 1.000 .683
advertisements is enough for
decision making
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Which brand advertisement 1.000 .869

do you think are more
appealing
Which brand name comes in 1.000 .904
your mind when you talk
about sports shoe
Are Adidas shoes more 1.000 .857
comfortable than Nike
Which brand will you prefer 1.000 .889
for long lasting use?
What do you look out in an 1.000 .679
advertisement?
are you more willing to buy 1.000 .368
products online or in-store
Why do most of the people 1.000 .815
prefer Nike more over
Adidas
Does the advertising affect 1.000 .732
your shopping trend?
Which company's 1.000 .873
advertisements are more
relatable?
Extraction Method: Principal Component Analysis.

Eigen Value
It indicates how much of the factors are explaining about the variables. It considers value greater
than 1.
Here, there are four components which has value greater than 1. Extraction sum of squares loadings
checks that how strongly these variables are correlated.
In this table, the first component explains the preference by 41.3%. The second component explains
the preference by 13.2%. The third component explains the preference by 12.8% and the fourth
component explains the preference by 9.2%. All the four combined together is explained by 76.7%
whereas remaining 24% indicates the loss of information.
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Related Component Matrix

Factor 1-
Which company's advertisements are more relatable has a value of 0.927.
Which brand will you prefer for long lasting use has a value of 0.935
Which brand name comes in your mind when you talk about sports shoes has a value
of 0.926

Factor 2-
Do you watch advertisement daily has a value of 0.840.
Information shown in advertisements is enough for decision making has a value of
0.696

Factor 3-
Why do most of the people prefer Nike more over Adidas has a value of 0.868.
What do you look out in an advertisement has a value of 0.596

Factor 4-
Does the advertising affect your shopping trend has a value of 0.851.
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Rotated Component Matrixa

Component
1 2 3 4
Do you watch advertisement .059 .840 -.091 .234
daily
Information shown in -.129 .696 .251 -.346
advertisements is enough for
decision making
Which brand advertisement .907 -.172 .124 -.039
do you think are more
appealing
Which brand name comes in .926 -.127 .151 -.090
your mind when you talk
about sports shoe
Are Adidas shoes more .923 -.025 .014 .068
comfortable than Nike
Which brand will you prefer .935 .117 .006 .039
for long lasting use?
What do you look out in an .424 -.307 .596 .223
advertisement?
are you more willing to buy .017 -.272 .338 -.423
products online or in-store
Why do most of the people -.056 .219 .868 -.101
prefer Nike more over
Adidas
Does the advertising affect -.012 -.063 .065 .851
your shopping trend?
Which company's .927 .058 -.097 .038
advertisements are more
relatable?
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
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Component Transformation Matrix

Component 1 2 3 4
1 .988 -.105 .108 .042
2 .047 .786 .485 -.381
3 -.121 -.605 .677 -.401
4 -.086 .073 .543 .832
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.

BUDGET
The research report costs about Rs. 500.
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CONCLUSION

This Research was a study on the “Impact of advertisement on consumer buying

behaviour” based on the analysis it can be concluded that advertisement has
significant impact on consumer buying behaviour. Advertisement creates the desire to
have better and newer items by educating the buyers about better life style.
Advertisement gives a direct encourage to consumer which in turns to prompt the
producer to produce more and better quality. Advertisement and selling have played
an important part in expanding the economic system by encouraging the consumers
into buying more.
It has been concluded that advertisement have greater impact on consumer behaviour.
Before purchasing any product, customers collect information for their proper
purchasing decision making activities hence advertisement is mostly adopted to get
information about the products .There are different factors influenced on buying
behaviour of rural and urban consumers in that it has been found that social and
personal factors have more influenced.
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ANNEXURE

Questionnaire for customers

Name of the respondent:

Gender:

o Male
o Female
 Do you watch advertisements daily?
o Never
o Often
o sometimes
o Regular

 Information shown in Advertisements is enough for decision making?

o sometimes
o never
o always
o Maybe
 Which brand advertisement do you think are more appealing to customers?
o Nike
o Adidas
o Others
 Which brand name comes in your mind when you talk about sports shoes?
o Nike
o Adidas
o Others

 Are Adidas shoes more comfortable than Nike?

o Strongly disagree
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o Disagree
o Neutral
o Agree
o Strongly agree
 Which Brand will you prefer for long lasting use?
o Nike
o Adidas
 What do you look out for in an advertisement?
☐ A familiar brand with a trust
☐ Product information
☐ Price information
☐ Celebrities and famous people
☐ Discounts and deals
☐ Humour
☐ Social message

 Are you more willing to buy products online or in-store?

☐Online

☐In-store

 Why do most of the people prefer Nike more over Adidas?

o Quality
o Brand Image
o Price
o Comfort
 Does the advertising affect your shopping trend?
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
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 Which company’s advertisements are more relatable and depict real life situations?
o Nike
o Adidas
 By chance if the availability of Nike is not there would you go for Adidas or vice-versa, if yes,
why?

REFERENCES
 https://issuu.com/randamin/docs/consumer_behaviour_.docx
 https://www.scribd.com/document/33798000/Consumer-Behavior-of-Nike-
Final
 https://s.docworkspace.com/d/AAfDQrKLnMQ6obeNraudFA
 https://issuu.com/kathleenmcentire/docs/nike
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 https://www.ukessays.com/dissertation/examples/marketing/adidas-
marketing.php