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A

Project Report On STUDY OF


Impact of Advertisements on Consumer Buying Behaviour with Special Reference to Soft Drinks
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MARKETING)

BY Showket Ahmad Lone


MBA-4th Semester

SASIIT&R MOHALI
UNDER THE SUPERVISION OF Prof. Shami Bathai Incharge Placement Cell ACADEMIC SESSION: 2011-2013

STUDENT DECLERATION

A critical and I hereby declare that this Project Report


titled

Impact of Advertisements on Consumer Buying

Behaviour with Special Reference to Soft Drinks


submitted by me to the Department of management, SASIIT&R

Mohali is a bonafide work undertaken by me and it is not


submitted to any other University or Institution for the award of any degree, diploma / certificate or published any time before. I am heartly thankful to my friends who helped me in finding the related topics and provided their valuable time in finding the topics related my project work.

ACKNOWLEDGEMENT
Behind the successful undertaking is the blessing and guidance of my faculty members, my project head and many other persons. This formal piece of acknowledgement may be sufficient to express my feelings of gratitude and deep respect that have experienced during the completion of this project. This endeavor would not have been successful without the help of encouragement from a lot of people with whom I had good fortunate of increasing of journey. I am indebted to our prof. shami Bhatia sir and my close friend Mr tanveer mir for their guidance and I can easily look it as my most reward in phase the course of my study without their immaculate and intellectual guidance, sustained efforts and friendly approach, it would have been difficult to achieve the result in short span of period. I would also like to thanks the other staff members of management department, my parents and my friends for their time and efforts shared with me. I would also like to thank the almighty who has given me courage and resources to complete my project.

SHOWKET AHMAD LONE

Chapter No. 1. 2. 3. 4. 5. 6.

Particulars Introduction Need of study Objectives of study Review of literature Research methodology Limitation of study

Page No. 5-10 11 12 13-29 30-32 33

7. 8. 9. 10.

Analysis and discussion Finding and conclusion bibliography Questionnaire

34-60 61-63 66-67 68-70

INTRODUCTION
In the dictionary definitions of advertising it does not tell us too much about the modern uses or functions of this business tool. They tell you that Advertising means to make know, to inform, to attempt, to persuade etc. One definition, found in The Reader Digest Great Encyclopedia Dictionary, says advertising is the act or practice of attracting public notice so as to create interest or induce purchase, also any system or method used for such purposes. Many people would accept this definition as simple and compact, but it is too broad. Advertising is a nonpersonal, multiple presentations to the market of goods, services or commercial ideas by an identified sponsor who pays for the delivery. In essence, advertising is a substitute for human salesman talking personally to an individual prospect or customer across a store, counter, or desk or an open door. And as a substitute for the human salesman, advertising has the same function, abilities and attributes as the human salesman, although usually in less effective form. It is less effective than personal selling, principally because it must be designed to appeal to a mass audience, in contrast with the personal salesman ability to tailor his message to each individual prospect and because again unlike the personal salesman, it has no opportunity to talk objections. As a substitute and an extension of personal selling, advertising also has many of the same characteristics as the personal salesman.

It can be hardworking and efficient, or lazy and wasteful. It can be upright and honest or slick and shady. It can tell its story calmly and quietly without hyperbole, or it can shout in your ear. It can address you as though you were a rational, thoughtful human being. It can be serious and thoughtful, or flip and humorous, it can reason with you, or entertain you, flatter you. It can be all these things and do all these things, but no more. Because in the end, its success or failure and its value to the advertiser who pays all its costs must rest on its ability to persuade a sufficient number of prospects to do what it says or buys what it sells without the use of any kind of force. The American Marketing Association (AMA) defines advertising as any paid form of non-professional presentation and promotion of ideas, goods and service by a identified sponsor. Advertising is a powerful means of communication, which not only leads to corporate, and product visibility but also creates, stimulates and sustains the demand for the product. The past few decades have led to the emergence of vibrant consumer markets throbbing with the excitement of consumptions. The corporate organizations of today can hardly afford to remain faceless entities and their products merely utilitarian objects. It becomes increasingly imperative for the business houses to assume humanized character and the product to have an emotive association through advertising effort. Advertising does the job of reaching out to people with a se of associations and appeals. Advertising as such has a vast power in sharing the popular desires, and hence it is one of the institutions, which has a formidable influence on our society. It is also defined as a powerful but difficult form of communication, which helps immensely in raising production-sales, bringing more clientele to service sector, and even persuading people to change their perception on social issues. It stimulates
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greater consumption and hence contributes to social progress through industrial growth. Advertising is a component of marketing mix and it is the marketing mix which determines the kind and nature of advertising and its strategy. Advertising is an art because it involves process of communication of the message across the audience. Advertising is a science because it involves rules, generalization and principles relating to collection of useful information and its application in the advertisement copy. The present day Indian Industry is witnessing all the constituents of a market economy. There are business concerns vying for a maximum share out of the crakes not too big to accommodate all of them. There has been a flood of consumer goods for the buyer to choose from. There are newer products as well as multiple brands. When it comes to consumer goods in a market situation, there are wars on price, quality and positioning fronts. In the light of all these things, advertising assumes a great significance. It is a key weapon in marketing warfare. Building added values, for a brand is the prime role of advertising. The success of effective advertising campaigns is twofold: their ability to attract consumer trial with a compelling dramatization of the product's story, and, their ability to communicate continuous satisfaction or even cumulative benefit as a means of reinforcing loyalty. According to Alyque Padamsee (1995), in the emerging high media clutter environment, both print and electronic media advertising needs more than just to be persuasive. It needs to be noticeable. A great advertisement is no longer one that tells you a lot about a product rationally and emotionally. A great advertisement has to first and foremost attract your attention.

Emergence of Soft Drinks


Water is life; one cannot even think of the existence of life without it. Water constituents are major parts of the earth as well as the human body. In the ancient times, human being was not aware of the quality of the water he was consuming. As knowledge grew, his concern regarding the quality of water increased. The methods like boiling, filtering & disinfecting with chemicals into existence.

But man wasnt satisfied with change in just the quality but wanted a change in the taste to quench thirst. This was when the concept of flavored water came into existence. A modified aspect of this concept led to the development of the soft drinks. The popularity of the soft drinks is indicated by the very fact that their consumption is very high in developed countries & the soft drinks culture popularly called cola culture is spreading rapidly in developing nations, for e.g. In just five year the consumption of soft drinks in India itself has grown from 5% to 18%.

The Indian Soft Drink Industry:


The companies have continued to wage their war in India. In 1993, Coke with the strategic move of buying out Parle gained a huge market share overnight. Pepsi also has spared no efforts to gain a larger market of the market. The potential in the India market is tremendous. India is a 330 million cases soft drinks market, that accounts to nearly Rs. 3000 crore. Moreover the Percapita consumption of thirteen bottles in India is lagging way behind the US's 700 bottles Per-capita consumption. The firms are pursuing this latent demand with increased vigor.

Domestic firms in India, which once enjoyed the benefits of sheltered markets, have increasingly faced competition from the global giants in the 90's. With the leading brands in the soft drink industry already in India, the country has become a part of the global market. The MNCs are using sponsorship of local and international events to market their products. They have also introduced global standards, systems and procedures to the industry. These players in the Indian soft drink market have raised the entry barriers, improved and expanded the distribution system, gobbled up or driven out the smaller players and truly globalised Industry. The events in the Indian soft drink market can be explained with reference to the global fight between Pepsi and Coke. Both have realized that the immediate priority is in expanding the market by increasing the growth. This has led to the Cola war really getting hot in India. In a bid to tap the market both the firms are busy redefining their P's. spends and roped in local celebrities. In 1993 Coca-cola had 64% market share (all brands included) whereas Pepsi stood at 23%. But with the thrust on advertising Pepsi appeared much stronger in 1977, with a market share of 43% whereas Coca-Cola went down to 55%. Big things came later in 1998, when Coke unfolded its teen programme slowly, fist with "Eat Cricket Sleep Cricket, Drink Only Coca-Cola and then with "Peeti Kya Coca Cola". Now with the latest punch line "Thanda Matlab Coca-Cola", Coke has acquired a new confidence and is ready for an eye-to-eye confrontation. Due to the buying of Cadbury Schweppes by Coke, the Soft drink market of India comprises now mainly of Coke and Pepsi. The present market share of Coke is 56% whereas that of Pepsi is 41%.
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They have increased the advertising

The overall scenario of the soft drink industry leaves us to just one question and that is "Are we about to witness the mother of all battles between Coca-Cola and Pepsi? What we can do is wait and watch.

Cola war
Both Coca Cola and Pepsi companies have been selling thirst quencher for 100 years and are now global brands. Their bottles and cans move through the world's most pervasive distribution networks. Coca-cola was born 11 years before Pepsi (in 1887) and a century later still maintains the pioneering lead and Pepsi even now poses as a young upstart and like the typical number two snipes harder and harder at coke. This is one duel that just doesn't stop; there's always a new front opening up somewhere as the two march around the world staking their claim on newly opened markets. In global markets Coke's presence is older, going back to World War II when the US government set up 50 plants to ensure that the Americans got their bottles of Coke wherever in the world they were. Pepsi is a later entrant, making its first international move in Russia in 1959 during the Krushchev era. Not surprisingly, 80 per cent of Coke's operating profits are derived from international sales which, in turn, are four times larger than Pepsi'. Coke is mainly a franchisee-driven operation with the company supplying its soft drink concentrate to its bottlers around the world. Pepsi has taken the more capital intensive route of owning and running its own bottling factories alongside those of its franchisees. Such differences and similarities have played themselves out in the Indian market too. Pepsi had a four season lead over Come but, having come in before liberalization, has not given it any edge. In fact, it spent the early years fighting bureaucracy and Ramesh Chauhan every step of the way. In comparison, Coke's entry post 1991
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was a breeze. Coke got the go-ahead for a 100 per cent owned operation. Coke was able to sew up a deal with Chauhan's Parle with its 60 per cent market share and turn into market leader overnight. Besides this, Indian people were already aware of Coke as it was there in India for quite sometime till the Janata Dal government came in power in 1977. Pepsi took a position in bottling realizing that Indian bottler just didn't have the ability or vision to upgrade capacity, Coke also has woken up to this reality. But it is partnering bottlers rather than running its own plants. Thus the present study is an attempt to study the selected advertising campaigns of the two major players in the soft drink market, viz, Coke and Pepsi, and also the effectiveness of the advertisements in influencing the consumers.

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Need of the Study


Study the impact of advertisements in term of consumer preferences, recall and purchase behavior. As we know these days Soft Drinks Companies are advertising their product so much on the televisions and they are spending so much money on the advertisement of their product. In a soft drink industry the cost of advertisement is nearly 35% of the total cost. For increasing the sale of their product they are taking film stars, cricket-stars in the advertisement of their product which is again very costly. They are spending so much on the sponsorship of events like cricket match etc. So this study deals with these aspects that whether advertisement is having any effect on the Consumers or not. In this study data will be collected with the help of the questionnaire which will be administrated personally to all the respondents. The questions will deal with the aspects like recall of advertisement of soft drinks, impact of advertisement on the purchase behavior of the soft drinks, factors influencing choice of brand and immediate reaction after watching an advertisement and also to know the influence of advertisement on preference of soft drinks, brand preference and reasons for brand preference. In some questions the techniques like ranking method is also used.

Objective of study

1. To find the effectiveness of the advertisement. 2. To find out the factors influencing the choice of brand.
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3. To know consumers preference towards the soft drinks . (a) To know the reasons for the preference of their favourite soft drinks. (b) To check the brand loyalty of consumers towards their favourite brand. The main purpose of this consumer survey is to see the recall ability of the consumers and also to see the factors affecting the choice of brand and an impact of advertisement on the purchase of soft drink.

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REVIEW OF LITERATURE
Advertising is more than tool for selling goods and services. It has one overriding task, to position a brand in the prospect's perception or perceptual space in relation to competitors, so as to create distinctness and preference. To formulate the problem scientifically and to point out the importance of undertaking this study, it is essential to present a brief review of researches undertaking in this area. Although the review involved a large number of studies, only a few studies which have direct and indirect bearing on the present study have been reviewed in this chapter. Metwally (1980) tried to find a relationship between sales and advertising found that the firm will always be able to sustain volume of sales even if it spends nothing on advertising. These sales to 'loyal' customers can be regarded as an independent variable of advertising. Marginal return of advertising is positive but too heavy advertising will create ill will and skepticism among the customer and thus, reduce the volume of sales. Thus, there is increasing return to advertising upto a point, beyond that point diminishing return starts to take effect. Raj (1982) presented the methodology that enables us to assess brands current strengths and to gauge the market response to increased advertising. He concluded that the advertising did contribute to the brands attractive and retentive strengths throughout the duration of the campaign.

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Raj (1982) investigated the different advertising effect on purchase behavior of consumers of high loyalty increase brand and product purchase when advertising for that brand increases. Little switching occurs from competitive brands into the advertised brand. Effect of increased advertising carry over a few months after advertising is lowered back to normal levels. Petty (1983) stressed the role of involvement in advertisement effectiveness. He observed that undergraduates expressed their attitudes about a product after being exposed to a magazine advertisement under conditions of either high or low product involvement. The advertisement contained either strong or weak arguments for the products and featured either prominent sports celebrities or average citizens as endorsers. The manipulation of argument quality had a greater impact on attitudes under high than low involvement, but manipulation of endorser had greater impact under low than high involvement. These findings were consistent with the view that there are two relatively distinct routes to persuasion. Singla (1984) found that there exists a desire among the executives as well as customers to improve the advertising campaigns in order to make them more sales effective. The researcher asked executives of various private as well as public sector undertaking having involvement with the marking management to give their views about advertisement effectiveness. The following list of attributes was found to be significant in making ad campaigns effective:(i) Noticeability (ii) Comprehension (iii) New Criterion (iv) Interest Value (vii) (viii) (ix) (vi) Believability

Affective Impact Uniqueness of advertisement Sociability


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(v) Memo ability

(x)

Imagination stimulus.

Part and Young (1986) in their work 'Consumer response to TV commercials: The impact of involvement and background music on brand attitude formation', suggest that a commercial containing music, affects brand attitude more as compared to the one which contains no music. This difference is expected because in addition to the visual part, the music of a commercial should act as another persuasion. Also, the effect of music on one's brand like ability and behavioral intentions, are expected to depend on the type and levels of involvement. Kamins (1989) supports the fact that for the enhancement of brand appeal through celebrity appeal works. In these ads renowned personalities are used to encourage and reassure the prospective customers. The ads using celebrity appeal had more brand appeal enhancing effect than the noncelebrity appeals. Tellis (1989) in the article, 'Are advertisements a waste', remarked that advertisement is one of the least important determinants of purchase behavior. The TV commercial albeit being the most popular form of advertising, have little impact on the purchase behavior of the consumers. He concluded the TV commercials were the least effective means. for changing the preferences of consumers, as compared to other promotional techniques such as coupons, print advertisements and price offs.

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Politz (1990)

found that purpose of campaign most often is to build an

impression of product and service to generate sales, suggesting that campaign must not only create awareness, but also should be persuasive. A creative approach combined with persuasive message highlighting

uniqueness of the advertised product often enables the advertiser to hold a long distance with the shopper when the advertisement is heard or seen, thereby enhancing its effect on the buyer at the time of purchase. Biel and Bridgwater (1990) found that commercial liking of a campaign went far beyond the mere campaign. The more relevant and meaningful commercial felt by people, the more successful was the campaign. The study further found that minor involvement and perceived relevance are factors linking commercial liking to persuasion in first case. Secondly, the novel approach, originality seems to have little to do with how a commercial will be liked. Further liking was a function of product category at least to the extent that food and beverage commercial were better liked than other categories. Schreiber and Appeal (1990/91) argued that researchers have been using surrogates for sales as a measure of evaluating the effectiveness of advertising. The use of surrogate measure necessarily implies a relationship between surrogate measure and sales which can be described in mathematical form as a curve of some sort. Here the implicit assumption is that relationship between surrogate measures instead of sales is not with faults.

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Unnava and Brunkrant (1991) did a study whose main objective was to compare the effects of varied versus same executions of advertisements on brand name memory when the number of exposure to ads is held constant. They found out that varied ad executions enhance memory for brand name over repeated same ad executions. In varied ad executions learning was superior to learning when executions remained the same. Singh and Cole (1993) did a laboratory experiment in which they compared the effectiveness of 15 second TV commercial with 30 second TV commercial by using novel commercials. With different message appeals (informational v/s emotional) exposing subjects multiple times and employing multiple dependent variables. They found out that informational 15s are as effective as information; 30s in general situations. They also round out that emotional: 30s are superior to emotional 15s in influencing a viewer's learning of brand name and attitude. The results suggest that the length per second effects brand name recall for emotional commercials but frequency of brand mentions, not length, effect brand name recall for information commercials. Brown and Rothschild (1993) conducted a study whose primary objective was to investigate the degree is which consumer memory for brands is effected by increasing level of advertising clutter. The findings suggest that, at the current level of advertising clutter on TV, it may be that neither recognition nor recall of brands is affected to any great by significant increase in advertising clutter.

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Irani (1994) in an article titled 'Cashing in on the quiz craze' has written that many companies like Hindustan Levers Limited are entering into naming contracts for programmes that can draw associations with the product in consumers mind. If the brand is successful in establishing its identity with a certain programme or quiz, the recall potential for the brand can be very high e.g. Philips Top 10, Bournvita Quiz, Close-up Antakshari etc. Menon (1994) in an article titled 'The comparative advantage has written that comparative advertising, which directly or indirectly compares a product with a competitors to show the advertised product's advantage has been prevalent in the industry for many year. But in the exiting scenario, where new brands in parallel category are springing up at a rapid rate this kind of advertising is gaining momentum. Most prominent among these have been, Pepsi and Captain Cook Company's. Although comparative advertising is not prohibited in our country, it has been severely stymied by stringent rules set by DD. With the satellite channels coming in, this may not be a hindrance any longer. Even governing bodies like Advertising Standards Council of India (ASCI) may not be in a position to check the tide. With the products categories getting overcrowded and players fighting for respectable market shares, we are bound to see more comparative stances being taken. Burnett (1995) conducted a research to identify 200 most awarded commercials and their association with success market place. It was pointed out that 86% or 172 commercials were successful. Within these 117 achieved increases in sales volume, market share and other 55 were successful in image enhancement.

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Padamsee (1995) in an article titled "Rising above the clutter" has written that because of the incredible noise level in today's media, print and electronic, advertising needs more that just to be persuasive. It needs to be noticeable. A great ad is no longer one that tells you a lot about a product rationally and emotionally. A great ad has to first and foremost attract your attention. Moreover advertisers have realised that along with the information customer also wants brand personality. So advertising should project not only the attribute and unique selling points but an image that the customer can react to. Zaidi and Jayaram (1996) reported the findings of a survey by Marketing and Research Group in September 1995 for the Delhi based Advertising and Marketing magazine, A and M. The results reflected apparent failure of the marketing strategies. Pepsi ranked 7th, while Coca Cola came in 13th on the survey results of the country's best marketing companies. Italia (1997) critically evaluates the findings of a survey done by Samsika Marketing Consultants on the soft drink market. The findings show that Pepsi is the most aggressive cola marketer in India and is the most widely available drink all over Mumbai. The sample size of the survey was 516 outlets in Mumbai and New Mumbai. The results (viz. Availability, visibility and finally market share) reveal that Pepsi has a good visibility in 76 per cent of the available outlets and is available in 94 per cent of the retail outlets, while commanding a market share of 16 per cent.

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Thums-Up attracts a market share of 15 per cent, achieving this with availability in 92 per cent of the outlets and a 'good' visibility in 71 per cent of the available outlets. Coke too has recorded a market share of 12 per cent with an availability quotient in 90 per cent of the outlets and a comparatively 'good' visibility in 56 per cent of the available outlets. The review of above literature indicates that despite a wealth of research studies available on the important subject of advertising, a research gap appears to exist in the area of advertising and their effectiveness in terms of consumer preference, recall and purchase behaviour. In India the advertisements of soft drinks especially Coke and Pepsi have been drawing the attention of researchers time and again. A lot of heat has been generated in the part so far as the advertisements of Coke and Pepsi are concerned. It is high time that the various implications and effectiveness of these advertisements are studied in greater details. Jaydev Raja (1993-1995) bought Ramesh Chauhan-owned Parle's top brands and gave Coke a 60% market share over right, But then he lost the plot-the cast cow Thumps Up was almost mothballed, Chauhan was antagonized, and the bottlers were alienated. Coke was not used to selling two cola brands in the one market, and it showed. When it came, the Coke launch in India was low-key, tapping into a quiet north Indian market near Agra. Coke says he set up the company, pushed approvals through the government and bought to a giant market share. But when Coke finally pulled him out, Raja had frittered away the flying start he himself gave Coke.

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Richard Nicholas (1995-1996) came to India up Coke's key institutional accounts, such as McDonald's. But even as he sealed the big bulk deals, the consumer market seemed to slip slowly away from coke. The brand focus slipped: Pepsi scored a huge triumph at the Wills World Cup 1996 with its "Nothing Officials About it" campaign even as the sporty Thumps Up was missing. Buttlers were antagonized by Coke's demand that they enter into joint ventures or sell out. They reached strongly-some, such as Pin Akin Shah of Ahmedabad, even crossed over to Pepsi. Thumps Up, in spite of low advertisement spend, continued to be ahead of Coke in the market price. Mr. Nice Guy (1997-1999) turned out to be too nice. While Donald Short managed to consolidate infrastructure, he built up a huge team, most of who are leaving at the end of his tenure. His purchase of 51 bottling plants came at a great cost: the $7000 million acquisitions bill will keep Coke in the red for nearly tow decades. Right now, Coke will have to work out what to do with the massive 6,000 - strong work face that has come with the creaky, technological backward bottling network. Short gave Coke in India a "nice" face, both to bottlers and employees. But as he leaves for his next post, a general upheaval in Coke's ranks tells a slightly different story. Big firms often develop and introduce new products. Nestle, is an example of a company that produced a brand of packaged food that failed repeatedly when marketed and advertised. After several attempts the Nestle Company finally

decided to sell there new product with a different marketing technique. Nestle waited to sell their product again until the fad was to eat healthy, low fat foods. And then stressed the health benefits in their advertising campaign. Immediately the company began selling their new product. Stouffer's Lean Cuisine (Kotler & Armstrong, 1989)
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This product is now called

An advertising campaign's main goal is to sell a product, however every company has different ways of doing this. All advertising campaigns have many different advertisements that all stress an identical major appeal or theme. And they are shown in many types of media during a specific time period. In

simplification there are six distinct phases, if not more, that are characteristic of a campaign. They are: 1. Picking the strategy for marketing 2. Choosing the main theme or appeal 3. Interpreting the theme into the media of various types 4. Making the advertisements 5. Purchasing the time and space 6. Evaluating and executing the campaign.

A new product's campaign also has deal with the six phases of marketing. The advertising campaign is considered successful if it defines its advertising objectives, planned better, creative, and more beneficial to consumers. An

increasing important role in advertising new and old products is using a creative strategy. Advertisers should evaluate appeal messages used. Products should mean something to the consumers, advertisers help give products their meaning by pointing out the desirable or meaningful benefits to them. It is necessary for products to be distinctive by telling how the product is better than other brands, competing with the same product. This can be done by using messages with believable appeals. The impact of a message depends on what is said and how it is said (Kotler & Armstrong, 1989).

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Schick is an example of a product with an award winning ad. It was well received by the audience because the headline, copy work and illustration were tied closely together to give the message meaning. This successful advertising campaign printed ads that were bold face at the top and said "Never a Dull Moment." Under the bold face print was a big picture of a razor, and in the corner information was given about the product that says; Schick blades don't get dull before their time. So you can get close, clean comfortable shaves- shave after shave. Try the convenient Shick plus disposable razor. Or Ultrex Plus cartridges, both with a lubricating `comfort' strip. (Kotler & Armstrong, 1989, p.442). In advertising, attention-getting and memorable words need to be used. Such as "7-UP's" ad "the Uncola." And if the advertisement is a print ad it needs to be powerful enough to draw attention to the reader. It must be the first thing the reader notices (Kotler&Armstrong, 1989). It is important for the reader (consumer) to understand that a product is something that can be marketed for acquisition, attention, or use that could fulfill a desire or need, when studying advertisements and their content. Services,

physical objects, people, and places also fit into this definition. A new product serves these purposes either by replacing old products or creating products like other brands. Sometimes a company buys a whole patent, license, or company to produce a product that it did not develop. And other times a company is formed with the intent to manufacture and sell a new product. IBM is an example of such a company (Kotler & Armstrong, 1989). IBM saw that customers wanted services such as, instructions, guarantees, and programming services. The marketer used this knowledge to advertise what they felt the consumers wanted (Kotler & Armstrong, 1989).

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The most common methods for companies to increase sales is introducing new or enhancing features to consumers. An example of this is Minolta's automatic focus on its camera system. The only determinant of sales impact is not feature itself. competition. There are other factors that are related to the context of Social environment and the strategy used in marketing all

influence innovations. And these innovations may influence the brand choice of new products and features that companies want to make and that consumers desire (Nowlis & Simonson, 1996). Consumer satisfaction's dominant model forgets to account for not only the needs of consumers, but their desires as well. Research has mainly focused on a consumer's expectation of a product, rather than what he/she desires from the product. MacKenzie and Olshavsky constructed a model about

consumer satisfaction, and they believe that a person's feeling of satisfaction comes from a person's desires, which the concept of marketing predicts. Their model tries to untangle the important roles of desire and expectations. Benefits desired by consumers and the judgment and choice models that already exist are the foundation for benefit segmentation. These models

show how buyers use desires, also called choice criteria, to evaluate and choose products. MacKenzie and Olshavsky's model also examines the

overall impact of information satisfaction with feelings of satisfaction as a whole. This is important because advertisers give this information about their products, which has an influence on the expectations of consumers; even if the consumer is falsely lead to believe something about a product (Mackenzie & Olshavsky, 1995).

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Sometimes consumers are falsy lead to believe something about a product because of their advertising effects. Grunet studied advertising effects and analyzed them by using information processing cognitive models. The

processing of information was equated largely with measurement and processes of conscious thought controlled by verbal methods. Grunet

researched the role of cognitive psychology and how it affected advertising. He was concerned with two kinds of cognitive processes: strategic and automatic processes. Automatic processes do not have capacity limitations and a cognitive response is activated by a specific cognitive input. They are also unconscious. Cognitive processes that are strategic can have capacity limitations and adapt readily to certain situations. process. This is a conscious

Advertising effects most commonly due to cognitive tasks are: (Grunet,

perception, learning, attention, information use, and retrieval 1996).

For many advertisements retrieval or remembering a message is a main concern. More advertising messages are likely to be forgotten than remembered. Therefore the advertiser's aim is for the audience toremember the advertisement. Effective advertising is not that hard to produce, at least in theory. The problem is if a message is motivating, has an unforgettable execution, and it has the right exposure, it still can mean different things to different people (Clancy & Shulman, 1993).

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In some cases a memorable advertising campaign is also another effective way to get people to buy and remember certain brands and products. Studies were done on the familiarity with brands and the memory of seeing advertisements, by using familiar and unfamiliar brands. Print ads were

created with the brand name, information, and product class featured in the headlines, without using pictures. Surveys were given to undergraduate students. The responses for remembering the products in the experiment with familiar and unfamiliar ads were about the same, in other words the respondents thought they remembered an ad that they really did not see before. This study supported the theory that competitive interference has considerable effects on the memory of consumers when seeing ads for unfamiliar ads or new products. There seemed to be no affect on products that already have been established in the market for a long period of time. This could be one reason for a new product's failure; literature suggests that the failure rate can be lessened by avoiding advertising next to a product of the same category. The results of these studies show that it is hard for

consumers to remember information about new brands in categories that are advertised heavily. The best way to advertise new products is to avoid the media in which there is competition for similar products of similar brands (Kent & Allen, 1994)

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Knowledge about a brand consists of brand image and brand awareness. A brand name's desirability can be judged by its easy retrieval, or in other words its easy access from memory, and to which extent the name makes a products strategic positioning better. Studies have been done on foreign named brands and their effects. Researchers have found that stereotypes tend to influence

people's perceptions and evaluations of behaviors. Stereotypes are powerful; for example, consider the French culture and the associations that can be made about its elegance, refined taste, sophistication, etc. Researchers studied French brands and the ways, in which people (consumers) perceive products, that are consistent and inconsistent, with the information of that France evokes. The study found the effects of brands named and spelled in a foreign language does in fact influence the perceptions of consumers. Marketing managers made decisions about sixteen thousand new products were introduces to drug stores and grocery stores in 1992. In order to find out about a product's quality it had to be used, the consumer demand initially would rely on the expectations of the consumer, basically beliefs about the quality of a product were purchased. It was found that consumers compared new information with past information, and based on this they formed future expectations. Expectations about a new product's quality are built and changed over time. "...satisfaction is a function of the difference

between experiences and expectations. "(Kopalle & Lehmann, 1995, p.280)

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In order to know what audience wants in a product or who mainly buys the product, target research has to be done. A target researcher helps in an

advertising campaign by giving key information about what to be used in the advertising. (Kotler & Armstrong, 1989) Advertising is specifically aimed at a target audience, a certain segment of the population for whom the service or product has an interest (Dominick, 1996). When choosing a target audience a lot of research has to be done, this is often called positioning. Positioning has

several interpretations. However, it most commonly means fitting a service or product to at least one portion of the large market. It is done in a certain way that sets it apart from competition without changing the product (Dominick, 1996). Many companies have not positioned their products correctly or they have launched unsuccessful products for many reasons. For example, a favorite idea might be pushed by a chief executive, even when the findings of marketing research are poor. Sometimes the market size has not been correctly estimated, or the product design is not up to par. And some new products have not had good advertising (Kotler & Armstrong, 1989). A study done of seven hundred industrial and consumers firms found the success rate for new products, overall to be sixty-five percent. Estimates by another source have found that eighty percent of the total new products that enter the market fail. (Kotler & Armstrong, 1989) Although many new products fail some are very successful, and many are successful due to their advertising campaign and the messages advertised (Kotler & Armstrong, 1989).

30

Clancy and Shulman did a survey recently, on how difficult it is to launch a new product to the market. They asked one thousand firms questions, and two thirds of the firms said that it was a lot more difficult to launch products into the market. They asked people to respond to questions expressing their attitudes towards different statements of advertisement. Respondents said that they no longer believe: 1. Good advertising sells products. 2. Advertising is a step by step process. 3. The finest product wins the largest share of the market. 4. Advertising is the tool that is the most effective in the business of marketing. 5. A product has to have mass appeal in order to be successful. 6. Most products are sold because of lower pricing. 7. Advertising research is realized important by most researchers. Several categories of product, after analysis, show that brands ranked lower than previous years, showing a low response rate to sales. (Clancy & Shulman, 1993). The message strategy is important, especially in

establishing new products to the market (Clancy & Shulman, 1993).A successful strategy, for marketing and advertising, is using brands to become affiliated with a portfolio of various products. The reputation of brands is This explains why

becoming one of firms most valuable resources.

companies are expanding their brands into several various product categories.

31

An example is the Panasonic brand, which can be associated with bicycles, electronics, and small appliances for the home. Many authors have brought up the concern of extending products into different categories, may weaken the brand. However not enough research has been to determine the

characteristics of a brands strength. There has been a considerable impact on brand extensions that is positive. And many firms are developing specific plans to extend their brands, weighing the risk of weakening the brand versus selling more products (Dacin & Smith, 1994). In 1990 a study was conducted by Clancy and Shulman that found approximately the same amount of people that liked advertising as do the ones that do not. Only about twenty-five percent of the people studied view the

commercial when it is shown. Often television watchers do something else like switch channels, give attention to something else, or exit the room. People

respond in different ways to different commercials. For example advertisements for soft drinks are watched more than other types of ads, for example ones for insurance. This is an indication that people watch the soft drink commercials like "Up" because they are more engaging (Clancy & Shulman, 1993).

32

Another study shows that only about eleven percent read a magazine's advertisements. Another eleven percent says that they never read the ads and flip to the next page. This shows that either these ads were not aimed at the correct target audience, or if people are not in the right target audience they will screen out the advertisements (Clancy & Shulman, 1993). Therefore, not

enough research is done on who reads certain types of magazines. This may be the same reason people tune out television commercials, because not enough research is done on who is watching certain shows. Thus their placement of advertisements may be wrongly suited for the segment of audience watching a particular show. A lot of research is done on advertisement, but there is still a lack of knowledge on how it affects our choices for buying certain products. Not enough studies have been done on what consumers like about an advertisements products that could motivate consumers to purchase them. Research shows there are many factors that contribute to a products success or failure, and advertising is one of them. Brands and memorable campaigns also seem to be a factor in the success of advertising campaigns. Know one seems to really know how effective advertising is for the buying behaviour. This leads to the Research Question. So this research study Deal with these aspects that whether advertisement is having any effect on the Consumers or not, to see whether people are influencing by advertisement or not and also to know the role of advertisement in buying behaviour. And finally the need of this study is to check the effect of advertisement on the buying behavior of consumers with special reference to soft drinks.

33

Research Methodology
Research design
The research is mainly of two types:
34

1. Exploratory 2. Descriptive

The tool for data collection


Data collection is a basic step and of vital importance. On which success or failure of the study depends. All researchers can tap into two sources of data. 1. Primary Data 2. Secondary Data The primary data was collected by a survey based on the questionnaire. The questions were listed in a pre arranged order and the object of enquiry was reveled to the respondents. .The questionnaire was aimed at finding out the Impact of advertisement of Coke and Pepsi in terms of consumer preference, recall and purchase behaviour. The questionnaire dealt with aspects like recall-ability of

advertisement of Coke and Pepsi, impact of advertisement on purchase behaviour of soft drinks, viz. factors influencing choice of a brand immediate reaction on seeing an advertisement influence of advertisement on preference and purchase of a soft drink, brand preference and reasons for brand preference etc.

Unaided recalls (What commercials or advertisements do you remember seeing?) Aided recall tests (The respondents are prompted by being shown a particular advertisement and then asked to remember their previous exposure to it. Verbal aids are also used to prompt recall) were used to study the recall-ability of advertisement of Coke and Pepsi. For aided tests various clues were given for e.g. Slogans and name of the model and the respondents were asked to identify the soft drink brand associated with them. In some questions the techniques like ranking method was also used.
35

The secondary data was collected from various sources like ---web sites of different soft drink companies --- Articles and books on soft drink industry etc.

Sampling plan
Universe The universe included all the consumers of soft drinks who are exposed to TV advertisement Population The population included all the consumers of soft drinks who are exposed to advertisement in TV purposively selected from Ludhiana city. Sample unit Single individual consumer of soft drinks who is exposed to advertisement in TV. Sample size was taken to be 100 . Keeping in view the time and resources constant, the total sample size was taken to be 100. In such a way that equal number of male and female respondents is selected and almost equal representation is provided across both the age group 15-25 years and above 25 years. Details are given below. In the age group 15-25 years almost all the respondents were students of PCTE. The respondents in the age group above 25 years consisted of house holds located near places Avtar Nagar Model town, and Kipps market in the Ludhiana city.

Sampling technique
The selections of the respondents were done on the basis of stratified convenient sampling. It was decided to include in the sample the consumers representing different categories of age group and sex. For this purpose the stratification of consumers was done on the basis of two attributes age and sex. Respondents have been categorized age wise i.e. 15-25 yrs, and above 25 yrs, and sex wise viz, male and female. This classification of consumer resulted in the following four strata: (a) (b) Male respondents in the age group 15-25 years. Female respondents in the age group 15-25 years.
36

(c) (d)

Male respondents in the age group above 25 years. Female respondents in the age group above 25 years

Frequency distribution of sample with respect to age group and sex: Age group (in yrs)
15-25 Above25 Total

Male
25 25 50

Female
25 25 50

Total
50 50 100

(iii)

Method of Analysis: Information collected by means of questionnaire was processed into

a master table. On the basis of this master table various tables were constructed which presented the tabular view of various parameters measured with respect to sex and age.

LIMITATIONS OF THE STUDY 1. 2. 3. The sample size in relation to total size of population is small. The results are based on data collected in one city. Being an opinion survey, the personal biases of the respondent might have entered into their responses.
37

4.

Information derived especially by recall tests may not have been processed by the respondent from TV only but also from other sources like hoarding, word of mouth and other promotional efforts like picture of model on the soft drink paper cups etc.

5.

The study was mainly an individual study, so all the limitations of such study like limitation of time, finance, coverage were faced.

ANALYSIS AND DISCUSSION:


This chapter deals with the results and the discussions of the research work. In this we will analyze the results and discussion of the survey, which is collected with the help of questionnaire.

Recall of the Soft Drink Advertisements:


38

Two kind of recall test were carried out through questionnaire to study the effectiveness of advertisement. In the first test the objective is to check unaided recall of the soft drink advertisement of Pepsi and Coke. The respondents were asked to name the soft drink advertisement which immediately comes to their mind. The second test was conducted on the parameters of aided recall. The respondents were provided with slogans and name of the models and were asked to recall the brand name of the soft drink associated with it. The responses were further analyzed with respect to sex and age.

(1) Unaided Recall of Coke and Pepsi Advertisement: In this un-aided test, respondents were asked to recall the advertisement of Coke and Pepsi. In this test the respondents were not provided any type of clues like slogans, name of models etc. This test is very useful to know the advertising effectiveness for creating the awareness of the product and to know whether respondents can recall the advertisement of the product without the help of any clues. So the results that came are discussed below.

Unaided Recall of Coke and Pepsi Advertisement: Advertisement COKE 1. Thanda matlab 2. Chhota matlab panch 3. Jo chaho ho jaye 4. Coke utha le dhoom macha le
39

Total (N=100)
91% 96% 91% 67%

5. Jashn Mana Le PEPSI 1. Yeh payas hai badi 2. Yeh dil maange more 3 Sachin ala re 4 Ye hai youngistan meri jaan 5.My can

75%

91% 97% 63% 95% 66%

Note: The total number of respondent is 100 so the number itself is %.

The above table is showing the unaided recall of advertisement & from this it is very clear that the recall ability of advertisement in both the Coke & Pepsi is very higher and advertisement has greater impact on the consumers as far as the recall of the advertisement is concern. In the above table it is clear that the maximum recall is of the Pepsi advertisement which is 97% & that advertisement is yeh dil maange more,and my can has the minimum recall which is 66%. And in case of Coke the maximum recall is of the chotta matlab panch advertisement, which is having 96% recalls. While the advertisement Coke utha le dhoom macha le has the minimum recall. For deep analysis this data is also analyzed on the basis of sex & age parameters.

Unaided Recall of Coke and Pepsi Advertisement: Sex wise Advertisement Male (N=50) Sex Female (N=50) Total (N =1 00 )
91% 96% 91% 67% 75%

COKE 1. Thanda matlab 2. Chhota matlab panch 3. Jo chaho ho jaye 4. Coke utha le dhoom macha le 5. Jashn Mana Le
40

48(96%) 50(100%) 47(94%) 35(70%) 39(78%)

43(86%) 46(92%) 44(88%) 32(64%) 36(72%)

PEPSI 1. Yeh payas hai badi 2. Yeh dil maange more 3. Sachin ala re 4 Ye hai youngistan meri jaan 5. My can

43(86%) 49(98%) 32(64%) 47(94%) 33(66%)

48(96%) 48(96%) 31(62%) 48(96%) 33(66%)

91% 97% 63% 95% 66%

Note: The total number of respondent is 100 so the number itself is %.

In the above table we can see the recall ability of Coke is higher in case of male which is nearly 96% to 100% and these advertisements are " Thanda matlab" and "Chhota matlab panch". The Recall ability of cokes

advertisement is highest in case of female which is 92% the advertisement isChhota matlab panch. In case of Pepsi the most recallable advertisements are " Yeh dil maange more" and Ye hai youngistan meri jaan which is having the recall ability of 98% & 94% in case of males. And in case of female also the recall ability of these advertisements are higher.The advertisement Ye hai youngistan meri jaan has more recall 96% as compared to males. But the advertisement with very less recall in both the males & females is Sachin ala re.

Unaided Recall of Coke and Pepsi Advertisement: Age wise Advertisement Age group 15-25 yrs. Above 25 (N=50) yrs. (N=50) Total (N =1 00 )
91% 96% 91% 67% 75%

COKE 1. Thanda matlab 2. Chhota matlab panch 3. Jo chaho ho jaye 4. Coke utha le dhoom macha le 5. Jashn Mana Le
41

45(90%) 47(94%) 45(90%) 34(68%) 38(76%)

46(92%) 49(98%) 46(92%) 33(66%) 36(72%)

PEPSI 1. Yeh payas hai badi 2. Yeh dil maange more 3. Sachin ala re 4 Ye hai youngistan meri jaan 5. My can

46(92%) 48(96%) 30(60%) 49(98%) 36(72%)

45(90%) 49(98%) 33(66%) 46(92%) 30(60%)

91% 97% 63% 95% 66%

Note: The total number of respondent is 100 so the number itself is %.

In this the recall of Coke's advertisement is higher in the age group of above 25years which is 98% & the advertisement is chhota matlab panch. And in case of the age group of 15-25years the maximum recall is again of the same advertisement but this time it has only 94% recall ability. In case of Pepsi the highest recall is in the age group of above 25years having recall of 98% and the advertisement is yeh dil maange more. And in the group of 15-25years highest recall is of Ye hai youngistan meri jaan advertisement which is 98% in this age group. (2) Aided Recall Of Coke And Pepsi Advertisement: In this aided test, respondents were provided the slogans of Coke and Pepsi. And were asked to identify the brand of soft drinks with which they are associated. Aided Recall of Coke and Pepsi Advertisement: Advertisement COKE 1. Jo chaho ho jaye 2. Jiyo thanda piyo thanda 3. Thanda matlab 4. Coke utha le dhoom macha le 5. Jashn Mana Le PEPSI 1. Yeh payas hai badi 2. Yeh dil maange more 3. World cup ke shikari 4 Ye hai youngistan meri jaan
42

Total (N=100)
95% 99% 98% 96% 97%

91% 97% 80% 95%

5.My can

78%

Note:The total number of respondent is 100 so the number itself is %. In the above table the total aided recall is shown. And in the table it is clear that in case of coke Jiyo thanda piyo thanda is having the highest recall which is 99% followed by the another advertisement Thanda matlab which is 98%. & in case of Pepsi the maximum recall is of Yeh dil maange more & Ye hai youngistan meri jaan which is 97%. This data is also analyzed in the two different parameters of sex & age. In that case, data is analyzed in the two sex group i.e. males & females & after that the two age group i.e. 15-25years & above 25years.This analysis is given below. Aided Recall of Coke and Pepsi Advertisement With Respect To Slogans: Sex wise Advertisement Male (N=50) Sex Female (N=50) Total (N =1 00 )
95% 99% 98% 96% 97%

COKE 1. Jo chaho ho jaye 2. Jiyo thanda piyo thanda 3. Thanda matlab 4. Coke utha le dhoom macha le 5. Jashn Mana Le PEPSI 1. Yeh payas hai badi 2. Yeh dil maange more 3. World cup ke shikari 4 Ye hai youngistan meri jaan 5. My can

49(98%) 50(100%) 50(100%) 48(96%) 49(98%)

46(92%) 49(98%) 48(96%) 48(96%) 48(96%)

46(92%) 48(96%) 43(86%) 47(94%) 40(80%)

45(90%) 49(98%) 37(74%) 48(96%) 38(76%)

91% 97% 80% 95% 78%

Note: The total number of respondent is 100 so the number itself is %.

In case of Coke the males are dominating with 100% recall of advertisements & those advertisements are Jiyo thanda piyo thanda &

43

Thanda matlab. And in case of females highest recall is of jiyo thanda piyo thanda which is 98%. In case of Pepsi the males are having highest recall of 96% of the advertisement Yeh dil maange more. & females are having highest recall of 98% for the same advertisement. And another advertisement which is having the recalled of above 90% in case of Pepsi is Ye hai youngistan meri jaan which is having recall of 94% in case of males and 96% in case of females. The advertisement of Pepsi which is having less recall is Pepsi my can which is having 80% recall in case of males and 76% in case of females. The overall recall of advertisement is very high in both cases i.e. males & females. But in both cases i.e. Coke & Pepsi males are having upper edge in recall of the advertisement as compared to females.

Aided Recall of Coke and Pepsi Advertisement With Respect To Slogans: Age Wise Advertisement 15-25 yrs. (N=50) COKE 1. Jo chaho ho jaye 2. Jiyo thanda piyo thanda 3. Thanda matlab 4. Coke utha le dhoom macha le 5. Jashn Mana Le PEPSI
44

Age group Above 25 yrs. (N=50) Total (N =1 00 )


95% 99% 98% 96% 97%

47(94%) 50(100%) 49(98%) 49(98%) 49(98%)

48(96%) 49(98%) 49(98%) 47(94%) 48(96%)

1. Yeh pyas hai badi 2. Yeh dil maange more 3. World cup ke shikari 4 Ye hai youngistan meri jaan 5.Pepsi my can

50(100%) 50(100%) 45(90%) 48(96%) 42(84%)

41(82%) 47(94%) 35(70%) 47(94%) 36(72%)

91% 97% 80% 95% 78%

Note: The total number of respondent is 100 so the number itself is %.

In

the

age

group

of

15-25

years

the

most

recalled

advertisement is jiyo thanda piyo thanda which is having a recall of 100% in case of Coke. And in case of Pepsi the advertisement having highest recall is yeh payas hai badi & yeh dil maange more both having recall of 100% each. In the age group above 25years again the highest recall is of Jiyo thanda & Thanda matlab in case of Coke & Yeh dil mange more& Ye hai youngistan meri jaan in case of Pepsi have highest recall (3) Aided Recall Test With Respect To Models: In this test, respondents were provided with the name of models and were asked to identify the brand name of soft drinks with which they are associated. In this recall test, the names of the models are provided as clues to the respondents to check their recall ability with respect to models of Coke and Pepsi advertisement.

Aided Recall of Advertisement With Respect To Models: Models COKE 1. Aishwarya Rai 2. Aamir khan 3. Akshay Kumar
45

Total (N=100)
97% 100% 95%

4. Sania Mirza PEPSI 1. Amitabh Bachhan 2. Shahrukh Khan 3. Sachin Tendulkar 4. Yuvraj Singh

91%

98% 99% 95% 95%

Note: The total number of respondent is 100 so the number itself is %.

In the aided recall test with respect to models the Coke is dominating over Pepsi by having 100% recalls for Aamir Khan followed by Aishwarya Rai which is having recall of 97% and Akshay Kumar is also having recall of 95% and Sania Mirza is having least recall of 91% in case of Coke. In case of Pepsi Shahrukh Khan is among the highest with 99% recalls followed by Amitabh Bachhan which is having recall of 98%. And Sachin Tendulkar and Yuvraj Singh are having equal recall of 95%. This data is also analyzed in the two different parameters of sex & age. In that case the data is analyzed in the two sex group i.e. males & females & after that the two age group i.e. 15-25years & above 25years.This analysis is given below.

Aided Recall of Advertisement With Respect To Models: Sex Wise Models Male (N=50) Sex Female (N=50) Total (N =1 00 )
97% 100% 95% 91%

COKE 1. Aishwarya Rai 2. Aamir khan 3. Akshay Kumar 4. Sania Mirza PEPSI 1. Amitabh Bachhan
46

48(96%) 50(100%) 47(94%) 44(88%)

49(98%) 50(100%) 48(96%) 47(94%)

50(100%)

48(96%)

98%

2. Shahrukh Khan 3. Sachin Tendulkar 4. Yuvraj Singh

50(100%) 49(98%) 47(94%)

49(98%) 46(92%) 48(96%)

99% 95% 95%

Note: The total number of respondent is 100 so the number itself is %.

In case of males the most recalled models are Aamir Khanwith recall of 100%, Aishwarya Rai with recall of 96%& Akshay Kumar with recall of 94% in case of Coke. And in case of Pepsi Amitabh Bachhan, Shahrukh Khan & Sachin Tendulkar are having maximum recalls i.e. 100%, 100% and 98% respectively. And in case of females most recalled model is Aamir Khan,Aishwarya Rai &Akshay Kumar with recall of 100%, 98% & 96% respectively, in case of Coke. Shahrukh Khan is most recalled model with recall 98% and Amitabh Bachhan & Yuvraj Singh with recall of 96% each in case of Pepsi.

Aided Recall Advertisement With Respect To Models : Age Wise Models Age group 15-25 yrs. Above (N=50) 25 yrs. (N=50) Total (N =1 00 )
97 100 95 91

COKE 1. Aishwarya Rai 2. Aamir Khan 3. Akshay Kumar 4. Sania Mirza PEPSI 1. Amitabh Bachhan 2. Shahrukh Khan 3. Sachin Tendulkar 4. Yuvraj Singh

50(100%) 50(100%) 49(98%) 45(90%)

47(94%) 50(100%) 46(92%) 46(92%)

49(98%) 49(98%) 47(94%) 49(98%)

49(98%) 50(100%) 48(96%) 46(92%)

98 99 95 95

Note: The total number of respondent is 100 so the number itself is %.


47

In the age group of 15-25 years the most recalled models of Coke are Aishwarya Rai, Aamir Khan with recall of 100% each & Akshay Kumar with recall of 98% & in case of Pepsi are Amitabh Bachhan, Shahrukh Khan & Yuvraj Singh who are having recall almost 98%. And in the age group above 25 years the models having highest recall are Aamir Khan in case of Coke & Shahrukh Khan in case of Pepsi with 100% recall. (4) Recall Test With Respect To Colour : In this test the respondents were asked to mention the colour which they associated with the soft drinks Coke and Pepsi. This test was conducted to see whether the Red Colour of Coke and Blue Colour of Pepsi were noticed by consumer or not. Recall Test With Respect To Colour: BRAND 1. COKE 2. PEPSI Total (N=100)
99% 93%

Note: The total number of respondent is 100 so the number itself is %.

In the recall test with respect to colour the Coke is again dominating here with 99% of the recalls & Pepsi is also having a good recall of 93%. This data is also analyzed in the two different parameters of sex & age. In that case the data is analyzed in the two sex group i.e. males & females & after that the two age group i.e. 15-25years & above 25 years. This analysis is given below. Recall Test With Respect To Colour: Sex Wise

48

BRAND Male (N=50)

SEX Female (N=50) Total (N =1 00) 99% 93%

1. COKE 2. PEPSI

49(98%) 47(94%)

50(100%) 46(92%)

Note: The total number of respondent is 100 so the number itself is %.

In the recall test with respect to colour 98% of the males recalled the colour of Coke and 94% of the Pepsi and in case of females 100% of the females recalled the colour of Coke and 92% of the Pepsi. Recall Test With Respect To Colour: Age Wise BRAND Age group 15-25 yrs. (N=50) Above 25 yrs. (N=50) Total (N =1 00 )
99% 93%

1. COKE 2. PEPSI

49(98%) 48(96%)

50(100%) 45(90%)

Note: The total number of respondent is 100 so the number itself is %.

In the age group of 15-25 years the 98% of the persons recalled the colour of Coke and 96% of the Pepsi. And in the age group of above 25 years, 100% recalled the colour of Coke and 90% recalled the colour of Pepsi. (5) Factor Influencing Choice of Brand:

49

To see the influence of the advertisement in comparison to certain other factors which affect the purchase decision for a soft drink. The respondents were given various factors and asked to rank these factors according to their preferences. Factor Influencing Choice of Brand: FACTORS 1. Taste 2. Easy availability 3. Brand name 4. World of Mouth Value
334 319 305 281

265 5. Advertisement In the above table it is shown that the most influencing factor in case

of choice of brand is Taste, followed by Easy availability & Brand name. This data is also analyzed in the two different parameters of sex & age. In that case the data is analyzed in the two sex group i.e. males & females & after that the two age groups i.e. 15-25years & above 25 years. This analysis is given below. Factor Influencing Choice of Brand: Sex Wise FACTORS Male (N=50) 1. Taste 2. Easy availability 3. Brand name 4. World of Mouth
190 207 200 185

SEX Female (N=50)


144 112 105 96

Value
334 319 305 281

5. Advertisement 150 115 265 In the above table it is clear that according to male the most affecting factor is Easy availability and the Brand name. But in case of females the Taste and the Advertisement are affecting factors.
50

Factor Influencing Choice of Brand: Age Wise FACTORS 15-25 yrs. (N=50) 1. Taste 2. Easy availability 3. Brand name 4. World of Mouth 5. Advertisement
150 190 175 128 129

Age group Above 25 yrs. (N=50)


184 129 130 153 136

Value
334 319 305 281 265

In the age group of 15-25 years the most influencing factors are Easy availability and the Brand name and in case of age group above 25 years Taste and Word of mouth are dominating followed by Advertisement. (6) Immediate Reaction After Watching An Advertisement: To know the immediate reaction of consumer on watching an advertisement certain statements were given to the respondents and they were asked to tick the most important one that they think. The main aim of this question is to see how a consumer behaves after watching an advertisement. Immediate Reaction After Watching an Advertisement: REACTION 1. 2. 3. 4. Urge to have that soft drink Urge to have any soft drink Urge to have favourite soft drink Drinking one within a reasonable time Total (N=100)
25% 16% 39% 20%

Note: The total number of respondent is 100 so the number itself is %.

51

In the above table the data regarding the immediate reaction of the consumer after watching advertisement is showing that 39% of the people are saying that they feel urge for the favourite soft drink & 25% are saying that they feel urge for the that soft drink. 20% said they will drink one within a reasonable time and 16% said that they will have any soft drink. Further it is analyzed on the basis of age & sex for better insight.

Immediate Reaction after Watching an Advertisement: Sex Wise REACTION Male (N=50) SEX Female (N=50) Total (N =1 00 )
25% 16% 39% 20%

1. 2. 3. 4.

Urge to have that soft drink Urge to have any soft drink Urge to have favourite soft drink Drinking one within a reasonable time

10(20%) 9(18%) 20(40%) 11(22%)

15(30%) 7(14%) 19(38%) 9(18%)

Note: The total number of respondent is 100 so the number itself is %.

In the above table the 40% of the males were saying that they will have urge to have favourite soft drink and 22% are saying to drink one within a reasonable time. Also in case of female 38% of the females will urge to have favourite soft drinks and 30% females will urge to have that soft drinks. So almost there is similarity between males & females responses. Both are saying that they feel urge for their favourite soft drink. Immediate Reaction after Watching an Advertisement: Age Wise REACTION 15-25 yrs. (N=50)
52

Age group Above 25 yrs. Total (N

(N=50)

=1 00 )
25 16 39 20

1. 2. 3. 4.

Urge to have that soft drink Urge to have any soft drink Urge to have favourite soft drink Drinking one within a reasonable time

17(34%) 8(16%) 18(36%) 7(14%)

8(16%) 8(16%) 21(42%) 13(26%)

Note: The total number of respondent is 100 so the number itself is %.

In the above table age group of 15-25 years and the above 25 years maximum people will urge to have favourite soft drink and some of them will go for that drink & few are saying drink one within a reasonable time. (7) Influence Of The Advertisement On The Consumer Preference And Purchase Behaviour: To know the influence of Advertisement in terms of consumer preferences and purchase behaviour certain statements were given to them and they were asked to tick the important one according to their choice. For better insight these data were analyzed on the basis of age and sex parameters. Influence of the Advertisement on the Consumer Preference and Purchase Behaviour: STATEMENT 1. Liking the advertisements does not necessarily mean that I like that brand also. 2. A good advertisement can change my preference for soft drinks. 3. I buy those soft drinks whose TV advertisements are frequent. 4. Basically all cola drinks have the
53

Total (N=100)
50%

11%

19%

20%

same taste.
Note: The total number of respondent is 100 so the number itself is %.

In the above table it is clear that maximum of the people i.e. 50% are saying that liking advertisement does not mean we like that brand also. And very few i.e. 11% are saying that a good advertisement can change their preference for the soft drink. 19% of them said that they purchase those soft drinks whose T.V. commercials are frequent. And 20% said that all Cola drinks have same taste. Influence of the Advertisement on the Consumer Preference and Purchase Behaviour: Sex Wise STATEMENT Male (N=50) SEX Female (N=50) Total ( N = 1 0 0 )
50%

1. Liking the advertisements does not necessarily mean that I like that brand also. 2. A good advertisement can change my preference for soft drinks. 3. I buy those soft drinks whose TV advertisements are frequent. 4. Basically all cola drinks have the same taste.

28(56%)

22(44%)

4(8%)

7(14%)

11%

8(16%)

11(22%)

19%

10(20%)

10(20%)

20%

Note: The total number of respondent is 100 so the number itself is %.


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The above table shows that 56% of the male and 44% female are saying that liking advertisement does not mean that we like that brand and very few i.e. 8% males and 14% females are saying that a good advertisement can change their preference for soft drinks.16% of male & 22% of female are there, who are saying that we purchase that soft drink whose advertisements are more frequent. There is more %age of females than males who are saying that a good advertisement can change their preference for soft drink. Influence of the Advertisement on the Consumer Preference and Purchase Behaviour: Age Wise STATEMENT 15-25 yrs. (N=50) Age group Above 25 yrs. (N=50) Total ( N = 1 0 0 )
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1. Liking the advertisements does not necessarily mean that I like that brand also. 2. A good advertisement can change my preference for soft drinks. 3. I buy those soft drinks whose TV advertisements are frequent. 4. Basically all cola drinks have the same taste.

25(50%)

25(50%)

6(12%)

5(10%)

11

9(18%)

10(20%)

19

10(20%)

10(20%)

20

Note: The total number of respondent is 100 so the number itself is %.

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In the age group of 15-25 years 50% people are saying that liking an advertisement does not mean that I would like the brand also. And 18% are saying that we purchase that brand whose TV advertisements are more frequently. And 12% are saying that a good advertisement can change my preference and almost same is the results in case of age group above 25 years. In which 50% of the persons are saying that liking an advertisement does not mean that would like the brand. (8) Consumer Preference Of Soft Drinks: To know the consumer preference for the soft drinks respondents were asked to name their most favourite cola drink the variation in the preference of a cola drink was analyzed across to age group and among to sexes. Classification of Most Favorite Cola Drink: COLA DRINK 1. Coke 2. Pepsi 3. Other Total (N=100)
53% 38% 9%

Note: The total number of respondent is 100 so the number itself is %.

In the above table it is clear that the Coke is dominating as a most favorite cola drink with 53% & Pepsi is having 38%, which is second in this. So this data is showing that Coca-Cola is more favourite brand. Classification of Most Favorite Cola Drink: Sex Wise COLA DRINK Male (N=50) SEX Female (N=50) Total ( N =

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1 0 0 ) 1. Coke 2. Pepsi 3. Other


28(56%) 18(36%) 4(8%) 25(50%) 20(40%) 5(10%) 53% 38% 9%

Note: The total number of respondent is 100 so the number itself is %.

In the above table 56% of the male like Coke and 36% male like Pepsi and 8% went for others. And in case of female the most popular drink is Coke among 50% of them and Pepsi is 40% and other is 10%. Classification of Most Favorite Cola Drink: Age Wise COLA DRINK 15-25 yrs. (N=50) Age group Above 25 yrs. (N=50) Total ( N = 1 0 0 )

1. Coke 2. Pepsi 3. Other

30(60%) 17(34%) 3(6%) Note: The total number of respondent is 100 so the

23(46%) 53% 21(42%) 38% 6(12%) 9% number itself is %.

In the above table in the age group of 15-25 years 60% people like Coke and 34% people like Pepsi and 6% people like other brands and where as in case of age group above 25 years, 46% of the people like Coke 42% like Pepsi and 12% like other brands. (9) Reasons For Preference Of Cola Drinks : Preference for a particular product is always because of some reasons. In order to know the most important factors, respondents were given a few choices to choose. This question was asked to see how much and
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advertisement affects the preference the Cola drink. The results are tabulated separately for Coke and Pepsi.

Reasons for Preference of Coke: REASONS 1. 2. 3. 4. 5. Taste Word of mouth Brand name Easy Availability Advertisement Total (N=53)
51(96%) 2(4%) -------

In the above table it is clear that those persons who like coke, 96% out of those like it because of its taste & 4% just because of word of mouth. Reasons for Preference of Coke: Sex Wise REASONS Male (N=28) SEX Female (N=25) Total ( N = 5 3 )
51 2 -------

1. 2. 3. 4. 5.

Taste Word of mouth Brand name Easy Availability Advertisement


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26(93%) 2(7%) -------

25(100%) ---------

In the above table out of the 28 males who like Coke. 93% of them like it because of its taste and 7% because of word of mouth and out of female 100% like it just because of taste. Reasons for Preference of Coke REASONS 15-25 yrs. (N=30) : Age Wise Age group Above 25 yrs. (N=23) Total ( N = 5 3 )
51 2 -------

1. 2. 3. 4. 5.

Taste Word of mouth Brand name Easy Availability Advertisement

28(93%) 2(7%) -------

23(100%) ---------

In the above table in the age group of 15-25 years 93% like Coke because of taste and 7% because of word of mouth and in age group of Above 25 years 100% like because of taste only. Reasons for Preference of Pepsi: REASONS 1. 2. 3. 4. 5. Taste Word of mouth Brand name Easy Availability Advertisement Total (N=38)
28(74%) 4(10%) 6(16%) -----

In the above table it is clear that those persons who like Pepsi, 74% out of those like it because of its taste & 10% just because of word of mouth & 16% because of brand name.

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Reasons for Preference of Pepsi: Sex Wise REASONS Male (N=18) SEX Female (N=20) Total ( N = 3 8 )
28 4 6 -----

1. 2. 3. 4. 5.

Taste Word of mouth Brand name Easy Availability Advertisement

12(67%) --6(33%) -----

16(80%) 4(20%) -------

In the above table 67% of the males like Pepsi because of the taste & 33% because of brand name and no one is going for it because of easy availability, advertisement etc. And 80% of the females like it because of taste & 20% because of word of mouth. Reasons for Preference Of Pepsi: Age Wise REASONS 15-25 yrs. (N=17) Age group Above 25 yrs. (N=21) Total ( N = 3 8 )
28 4 6 -----

1. 2. 3. 4. 5.

Taste Word of mouth Brand name Easy Availability Advertisement

16(94%) --1(6%) -----

12(57%) 4(19%) 5(24%) -----

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In the age group of 15-25 years 94% of respondents like it because of taste & 6% because of brand name and above 25 years 57% of respondents like Pepsi because of its taste,19% because of word of mouth & 24% because of brand name. (10) Reaction Of Consumer On Non-Availability Of Favourite Cola Drink: To know the brand loyalty or the degree of preference of cola drink, the respondents were asked about their reaction in case their favourite cola drink is not available. They were given choices whether they go to another outlet or they would buy non cola drink or they will buy another cola drink. The responses obtained are tabulated below. Reaction of Consumer on Non Availability of Cola Drink: REACTION 1. 2. 3. 4. Will Will Will Will go to another outlet buy other cola drink buy non cola drink buy any other drink Total (N=100)
17% 56% 15% 12%

Note: The total number of respondent is 100 so the number itself is %. In the above table it is clearly shown that 56% of the persons will buy other cola drink because of the non availability of their favourite soft drink. And 17% will go to another outlet, 15% will buy non-Cola drink and 12% will buy any other drink. So it shows that the respondents are not loyal towards their favourite brand of soft drink.

Reaction of Consumer on Non Availability of Cola Drink: Sex Wise

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REACTION Male (N=50)

SEX Female (N=50) Total ( N = 1 0 0 )


17% 56% 15% 12%

1. 2. 3. 4.

Will Will Will Will

go to another outlet buy other cola drink buy non cola drink buy any other drink

7(14%) 30(60%) 8(16%) 5(10%)

10(20%) 26(52%) 7(14%) 7(14%)

Note: The total number of respondent is 100 so the number itself is %.

In this 60% of the male and 52% of the females are saying that they Will purchase other cola drink. 14% of males and 20% of females will go to another outlet.16% of males and 14% of females will buy non-Cola drink.10% of males and 14% of females will buy another drink. Reaction of consumer on non availability of Cola Drink: Age wise REACTION 15-25 yrs. (N=50) Age group Above 25 yrs. (N=50) Total ( N = 1 0 0 )
17 56 15 12

1. 2. 3. 4.

Will Will Will Will

go to another outlet buy other cola drink buy non cola drink buy any other drink

14(28%) 28(56%) 6(12%) 2(4%)

3(6%) 28(56%) 9(18%) 10(20%)

Note: The total number of respondent is 100 so the number itself is %.

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In the age group of 15-25 years the 56% of the people will buy other cola drink and 28% will go to another outlet. And 12% will buy non cola drink and 4% will buy another drink. In case of age group above 25 years 56% will buy other cola drink, 18% will buy non cola drink and 6% will go to another outlet and 20% will buy another drink. So we can say that consumers in both the age groups are not showing loyalty towards their favourite soft drink brand.

FINDINGS AND CONCLUSION:


It has been concluded that advertisement is very effective as far as recall of the advertisement is concern and it is very effective way to create the awareness of the product. Advertisement has a good impact on the consumer but their reaction is not positive for that brand whose advertisement they are watching as maximum of the people are saying that they feel urge to have their favourite soft drink and not that soft drink whose advertisement they are watching.

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Advertisement is not playing the effective role in changing consumer preference for the selection of soft drink brand and is looking less effective on purchase behaviour of the consumers. The most influencing factor taste is followed by easy availability & brand name. And the least value is given to advertisement as the factor that influences the choice of soft drink brand. It has been concluded that Coke is among the most favourite brand of consumers followed by Pepsi. So Coke is highly preferred brand of soft drinks for the consumers. The consumers who like Coke maximum of them are saying that they just like Coke because of taste & remaining are saying because of word of mouth. And no one is saying advertisement is the reason for preference of Coke. And in case of Pepsi, too, taste is one the most important reason followed by word of mouth & brand name. So the advertisement is not a reason for the preference of their favourite soft drink in any of cases. The survey shows that consumers are not showing loyalty for their favourite soft drink brands. As maximum of the respondents are saying that they will buy other cola drink because of non availability of their favourite cola drink. And very few are saying that they will go to another shop to have their favourite soft drink brand. So it shows that people are not loyal towards their favourite brand. o, from the whole study we can conclude that advertisement is very effective as far as recall of the advertisement is concern and it is very effective way to create the awareness of the product. And it can be very useful in selling during the initial stages when product is new. But on the later stages there are many other factors that come in to play for selection of soft drink brands. These
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factors are like taste, word of mouth etc. so the company must stress upon these factors because in the initial stages when product is new at that time with the help of advertisement etc company can convince the people to purchase their product once but if the products are not good with respect to quality and also due to uneasy availability of their product then company will be thrown out of the market and it will be hard for the company to compete in the market in todays scenario

SUMMARY:
This survey basically deals with purpose to know advertisement effectiveness regarding soft drinks. For this consumer survey was conducted. The population included in the survey was selected from Ludhiana city; it is further stratified on the basis of two attributes age and sex. Two age group 15-25 years & above 25years. And the two categories of sexes, male and female were taken. The sample size was restricted 100. The technique was followed in such a way the
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equal number of male and female respondent were selected and almost equal representation is provided to different age group. The information is collected from the respondent by the means questionnaire, which was further analyzed to elucidate the objective of this study. The summary is given below:For finding the effectiveness of advertisement the first parameter taken is the recall of the soft drink advertisement which was analyzed on the basis of punch lines, models & color. And also two type of test were there for recall i.e. aided & unaided recall. In the unaided recall of the advertisement the most recall advertisement is the "Chhota matlab panch" which is 100% in case of male & 92% in case of female. And in Pepsi the most recall advertisement is "Yeh dil maange more with percentage of 98% in case of male & 96% in case of female. So in the unaided recall of the advertisement there is not much difference between male & female as far recall of advertisement is concern. And same is the case in the age group also. In the aided recall of the soft drink advertisement the Cokes advertisement of " Jiyo Thanda and Piyo Thanda is among the highest. But in case of Pepsi, the advertisements having highest percentage are "Yeh pyas hai badi and "Yeh Dil Mange More". The next recall was with respect to the models and in this Aamir Khan, Akshay Kumar and Aishwarya Rai were recalled by maximum number of people and in the Pepsi three models Shahrukh Khan, Amitabh Bachan and Yuvraj Singh were recalled by maximum number of people. And recalling with respect to colour the Coke is dominating with the 98% and Pepsi is just behind coke with having almost 96% in both the parameters of sex & age.
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This objective was concern to know that what kind of urge people feel when they watch the advertisement. And 40% of the males and 38% percent of the females are saying that after watching advertisement they urge to have their favourite soft drink and not that soft drink whose advertisement they are watching. And in the two different age group of 15-25years & Above25years the maximum of the people are giving the same response as given by the male & female. The 56% of the males & 44% of the females are saying that liking the advertisement of a soft drink brand does not mean that they like that brand also. And in the age wise analysis, 50% in both the age groups are giving the same response. And very few are saying almost 8-14% that a good advertisement can change their preference for the soft drink brand. Respondents were asked to rank the given factors that influence their choice of soft drink brand. In case of male the maximum value is given to easy availability & brand name. And in case of female, taste is having the maximum value & almost same is the result age-wise also. The most influencing factor is taste followed by easy availability & brand name. And the least value is given to advertisement as the factor that influences the choice of soft drink brand. In sex-wise analysis 56% of male & 50% of female like Coke whereas 36% of male and 40% female like Pepsi. And the remaining 8% of male & 10% of female like other brands of soft drinks. In the age-wise analysis again the Coke is leader followed by Pepsi. The consumers who like Coke 96% of them are saying that they just like Coke because of taste & remaining 4% are saying because of word of mouth. And no one is saying advertisement is the reason for preference of Coke. And in case of Pepsi, too, 74% of respondents are saying that they like pepsi because of taste,10% because of word of mouth and 16% are going for brand name.
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The survey shows that consumers are not showing loyalty for their favourite soft drink brands. As 56% of the respondents are saying that they will buy other cola drink because of non availability of their favourite cola drink. And very few (17%) are saying that they will go to another shop to have their favourite soft drink brand. So it shows that people are not loyal towards their favourite brand.

Bibliography

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Burnett, L. 1995.It does too- A Company Survey. A & M, January 15: 5760.

Karmali, M.A. 1989.Celebrity and Non-Celebrity Advertising in Two Sided Context, Journal of Advertising Research.29 (3):34-42.

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Padamsee, A .1995.Rising Above the Clutter. Brand Equity Annual, p.18. Petty, R.E. Central and Peripheral Routes to Advertising Effectiveness: Moderating Role of Involvement, Journal of Consumer Research.10 (20):135-146.

Politz, A 1990.Creativeness and Imagination, Journal of Advertising4 (3):11-14.

Raj, S.P. 1981Attractive and Retentive Effects of Advertising, Journal of Advertising Research22 (2):53-60.

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Shirah, A, 1997.Tryst with Destiny, A&M, April1:36-38. Schricber, R.J. and Appeal V.1991.Advertising Evaluation Using Surrogate Measure for Sales, Journal of Advertising Research.30 (6):27-31.

Singh, S.N. and Cole,C.A. 1993.The Effects of Length, Content and Repetition of T.V. Commercial Effectiveness, Journal of Marketing Research. 30:91-104.

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Unnava, H.R. and Brunkrant, R.E. 1989.Effects of Repeating Varied Advertisements Executions on Brand Name Memory, Journal of Marketing Research.28:406-416.

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www.cocacola.com. www.pepsi.com.

QUESTIONNAIRE
Personal Information Name Age : : _________________________ _________________________
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Sex Address (1) (a) (b)

: :

_________________________ _________________________

List the advertisement for the following brands of the soft drinks? Coke _____________________________________________________ Pepsi
________________________________________________________________

(2)

The following slogans are associated with advertisement of different Slogans Brands ________________________ ________________________ ________________________ ________________________ ________________________ ________________________ ________________________ ______________________ ________________________ ________________________ ________________________

brands of soft drinks. Identify the brands? 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11. Yarran Da Tashan Yeh Dil Maange More Sachin Ala Re World Cup Ke Shikari Sabka Thanda Ek Yeh Pyaas Ha Badi Thanda Matlab Coca Cola My can Coke utha le dhoom macha le Ye hai youngistan meri jaan Jashn Mana Le

(3) 1. 2.

Tick the appropriate brand with respect to model of that brand? Model Aamir Khan Shahrukh Khan Coke _____ _____
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Pepsi _____ _____

None ____ _____

3. 4. 5. 6. 7. (4)

Akshay Kumar Aishwaray Rai Sania Mirza Sachin Tendulkar Amitabh Bachhan

_____ _____ _____ _____ _____

_____ _____ _____ _____ _____

_____ _____ _____ ______ ______

Which colour you will associate with? Coke Pepsi _____________________ _____________________

(5) 1. 2. 3. 4. 5. (6) 1. 2. 3. 4.

Rank the following factors according to their importance in the selection of the soft drink brands? Taste Easy Availability Brand name Word of Mouth Advertisement After watching the advertisement what is your immediate reaction? Urge to have that Soft drinks Urge to have any Soft drink Urge to have favorite Soft drink Drinking one within a reasonable time.

(7) 1. 2.

Tick one statement given below with which you are agree? Liking the advertisement does not necessary mean that I like that brand of soft drink. A good advertisement can change my preferences
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for that soft drink. 3. 4. (8) I buy that soft drink whose T.V. advertisements are frequent. Basically all the cold drinks have the same taste. Which is your favorite cola drink? Coke (9) 1. 2. 3. 4. (10) 1. 2. 3. Pepsi

Give the reason for preference of your favourite cola drink? Taste Size Advertisement Easy Availability What will be your reaction on the non-availability of your favorite cola drink? Will go to another outlet. Will buy other cola drink. Will by a non-cold drink

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