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"IMPACT OF ADVERTISEMENT ON CONSUMER BEHAVIOUR"

By
AYAZ MAHMOOD CHAUDHRY
Submitted to:
TANZEEL ABDUL RAUF PATKAR
A thesis
Submitted in partial fulfillment of the requirements
For the degree of bachelors of Business Administration
At the University of Karachi

ACKNOWLEDGEMENT
I thank all who in one way or another contributed in the completion of this thesis. First, I give
thanks to God for protection and ability to do work.
I am so grateful to our sir Mr.Tanzeel Patker for making it possible for me to study here. I give
deep thanks to the Professors and lecturers, the librarians, and other workers of the faculty. My
special and heartily thanks to my supervisor, Mr Tanzeel Patker who encouraged and directed
me. His challenges brought this work towards a completion. It is with her supervision that this
work came into existence. For any faults I take full responsibility.
I am also deeply thankful to my informants. Their names cannot be disclosed, but I want to
acknowledge and appreciate their help and transparency during my research. Their information
have helped me complete this thesis.
I am also so thankful to my fellow students whose challenges and productive critics.
I also thank my family who encouraged me and prayed for me throughout the time of my
research.
May the Almighty God richly bless all of you.

ABSTRACT

The present work is focused on the impact of advertising on consumer behavior. Promotion,
digital media and celebrity endorsements in advertising are the main factors that increase the
intentions of consumers about the products and buying behaviors. And buying behavior
powerfully influenced by the image of the product, which is building by advertisers. And it is the
collection of primary data for the study through questionnaires were secondary data collection
via the Internet, newspapers and business magazines. This study was conducted a survey in
December 2014. The sample was taken from the 250 respondents.
The study explores the creative and well implemented advertising always has a great impact on
purchasing trends or buying behavior of consumers. At the same time, product quality, price, and
also includes a strong impact on consumer buying behavior. Just as somewhat important support
also purchase behavior celebrities. Therefore, the study concludes that the positive impact of
these factors in consumer buying behavior demonstrates consumer loyalty to the brand, which
helps strengthen the advertised product and changing buying behavior towards intentions
purchase.
Oppo led efforts in China's electronic information manufacturing with HQ and production. It is a
registered trademark of technology worldwide, and has a long history of customers in North
America, Europe and Asia, and to provide a product that gets high marks from experts
worldwide. Since entering the mobile market in 2008, we have patience in order the latest
technology, high quality and most products are easy to use.

Contents
ABSTRACT...................................................................................................................................................... 3
CHAPTER 1 : INTRODUCTION ........................................................................................................................ 5
Introduction to Oppo .................................................................................................................................... 6
Technology:-.............................................................................................................................................. 6
Quality Standards...................................................................................................................................... 6
1.1 Problem Statement ............................................................................................................................. 6
Full problem statement for this work are as follows: ................................................................................ 6
To explore the effect of advertisement on consumer behavior. ................................................................ 6
Outline of The Study ................................................................................................................................. 7
Chapter 2: Literature review ......................................................................................................................... 8
Chapter 3 : RESEARCH METHODS ............................................................................................................... 11
Sample Size ............................................................................................................................................. 11
Sampling Technique ................................................................................................................................ 11
Instrument Of Data Collection ................................................................................................................ 12
RESEARCH MODEL ...................................................................................................................................... 12
Chapter 4 RESULT........................................................................................................................................ 13
Findings And Interpretation Of The Results............................................................................................ 13
Chapter 5 Conclusion .................................................................................................................................. 17
Future Research ...................................................................................................................................... 17
Limitations .............................................................................................................................................. 17
REFERENCE .................................................................................................................................................. 18

CHAPTER 1 : INTRODUCTION

Each and every product delivers the different meaning to each user. User behavior is not related
what consumer buy, but also with what they buy it. It depends on those factors which inclined
the behavior of user or buyer. Culture, family and brand image these all factors influenced the
buying behavior.
Market share of the product depend on the awareness of consumer. Thats why the organizations
and agencies advertise their product via media either electronic or print or both. The repetition of
advertisement and economic factor like per capital income also change the consumer behavior
about to choice the product.
In 2011 Pakistans national per capital income is $1254 and it is too much low rather than other
countries. Pakistan is on 24 ranks regarding per capital income. Due to competition every
organization do advertisement more and it effect directly on their product demand and
organization move upward smoothly. All the advertising methods inclined the user behavior but
media influence more than other sort of advertisement (Latif and Abideen, 2011). Smith and
Whan (1992) found that the high quality product not only capture the greater share of market but
maximizing the market value. The consumer spent more on the Fast Moving Consumer Goods
(FMCG) because daily uses products are relevant to more advertisement thats why the
consumer influences by the advertisement. Advertisement convey the message to the targeted
consumers, groups or individuals user and it attract the users for to use the company goods and
services. De Cherenatomy (1998) says that effective and successful branding requires a tactical
perception. Price is the one major factor on which bases the consumer change the product
because Pakistan is an underdeveloped country and the users cannot bear high prices of the
product.

Introduction to Oppo
Technology:They explore the extremes of the latest technology has to offer. From the outset, the compression
product restrictions on technology. Examples include 6.65mm OPPO researchers to be published
in mid-2012, the thinnest smart phone in the world. By the end of 2012, it is one of the smart
phone that was announced more than expected in the world, and which has a Find 5, featuring a
1080p screen and 13 mega pixel CMOS sensor prepared, and it is the first smart phone in the
world with device HDR supported.

Quality Standards
Only those who use their high quality can be found in the market mechanism. Alliances with
leading international partners to ensure that we have the latest equipment and the best there is. R
& D with the unique ability enough, we design, develop, manufacture, market and sell our own
products.
We have full authority over the entire supply chain, from our factory to the hands of consumers.
In this way, we can design the final product in mind and ensure that only the best quality
products reach our customers.

1.1 Problem Statement


Full problem statement for this work are as follows:
To explore the effect of advertisement on consumer behavior.

Outline of The Study


This scheme provides an overview of research on five main chapters that are part of this research
report:
The first chapter of the thesis provides an overview of all the essential elements of the thesis.
This thing plays an important role, because it provides the reader with an understanding of the
purpose of the research and the overall research process. Including sub-components in this
chapter, an overview of the thesis, problem statement, research and the research hypothesis.
Chapter II of this literary research report related to the variable specified search. This chapter
provides a critical review of the literature on work by past researchers. Is compared with the
well-known on the variables that have been identified for this thesis in this business about
academics. Newspaper clippings and second-hand books on the subject of study in the literature
review of this thesis.

Chapter III of this research report presents the research methodology adopted for this search.
He explained the method together with the search tool adopted by researchers to collect data in
this chapter of the thesis. The main component of this chapter is the method of data collection,
and sample size, and sampling methods, and tools used for data collection and search form.

Chapter IV of this report is to find research results and interpretation of results data. Are these
results obtained by using the search tool designed for the thesis. In the final part of this chapter,
and provides a comprehensive analysis of research findings.

Chapter V presents the conclusions of the thesis research report. Some suggestions are also
presented in this chapter is based on research results. More research and implicit limits of this
study is in this chapter.

Chapter 2: Literature review


Advertising is a form of communication used to persuade a certain group of people to take new
steps. And advertising as key elements essential for economic growth and marketer of various
companies in the competition (Ryan, 1996) it. Advertising is usually a form of paid advertising
by several sponsors achieved through traditional media such as TV and radio commercial
advertising, outdoor advertising, newspapers, magazines, mail or new media such as blogs,
websites and text messages. Further development and technological progress is transferred to the
wider advertising and the impact strength and influence (LEISS et al., 1986). Advertisers
beginning assumed that advertising is very powerful to say "pull through and achieve a strong
willed and as" bullets or early model "needle under" relationship that leads to the concept of the
earliest effects of Communications, "who said what to whom with what skin medium with what
effects "(Bryant and Zeeman, 1944). Declaration made by the Egyptians who used papyrus sales
messages and wall posters, billboards, banners and outdoor advertising as the most ancient form
of propaganda. There has been a tradition of painting on the wall and chocking in ancient Greek
and Roman culture, and also in India, which now can be seen in many, and place in the world,
and also (Kotler and Armstrong, 2008). Development of modern advertising with great
development in the production of the 20th century to the late 19th and early. After a successful
print ad, a winning idea that radio advertising and then followed by television advertising. In the
early 1950s began a series of TV ads Monte de direction giving. With the advent of the 21st
century, online advertising has existed in the global market and the consumer society. Now
advertising and its effects have been shown to impact on the buying behavior of consumers and
marketers need around the world. After 1920, the Declaration has become a source of guidance
to consumers, who teaches not only a source of guidance for the purchase, but also on issues of
social roles, and increase the sense of confinement and develop a sense of style and good food
(Bill 0, 1976; Marchand, 1985). Always to give consumers buying habits is of great importance
and space in literary studies of the effect of advertising on their effectiveness (Ajzen, 2002). And
most consumers buying behavior is influenced by the time like or dislike of users on advertising
for the product, which was published (Smith et al., 2002). Similarly, Allen. Et al., (1992) says
that it is actually emotional reactions developed after the announcement, and the product being
advertised, that affect consumer behavior. In the words of FAN, 1982, and the behavior of
consumers towards products rely heavily on advertising, without any assessment of the quality of
the product. Moreover, the difference on the impact of advertising on consumer trends and
buying habits is always present (George, 1989). Sometimes advertisers to exaggerate the benefits
of the product to a bug in the way that users go under the pressure of advertising psychology of
persuasion, and decided to buy the products advertised on purpose (Smith et al., 2006). In the
view of some, and now most users avoid advertising, because they thought the ads, just annoying
and confusing (Bishop, 1997). Ads have been attacked on the grounds of psychological, social,
aesthetic and political. From the perspective of ordinary secular person, whether the purpose of

advertising? Some critics even criticized and seen the ads is very harmful to the collective
behavior of society (Barbara, J. P 1997) it. But defenders of the Declaration always provide a
strong argument in favor that the main purpose of advertising is to sell a product, from its
impacton the cultural values of society (Gold, 1987) it. There is a general view of many members
of the public, it is possible that the effects of the Declaration of negative, unintended or intended
to buy consumer trends (and rustle rustle 1977 and Verbeek, W. 1992). In fact, the ad has a
strong potential to change social values, as well as buying behavior through our impact on
cultural values (Schudson, 1984). In particular, advertising and consumer choice could lead to
material objects more alternative morally and socially oriented. Potentially increasing conflict
and leads to misery and people are more frustrated than society (Goldberg and the Government
of Malaysia 1978). Although the main purpose of advertising is to provide a new, creative and
useful for long-term benefits of brand loyalty and image building products and companies to
establish contacts and persuasion to buy this product. It also can be a contentious issue any
adverse effects of advertising collective beliefs and attitudes with respect to consumer buying
behavior (Barbara, J. 1997). In the modern era, it is really hard to succeed in persuasion and
mold or influence the buying behavior of consumers in an era of tough competition (Robinson,
1997). With the success of the advertising field and has now been recognized as a global factor
that advertising plays a very powerful role in consumer behavior (Beil and Bridgewater, 1990). If
consumers can understand the purpose of advertising, and can be reduced, and the potential
impact of the announcement. Television advertising allows users to use cognitive defenses, such
as for the production of counter-arguments and reasons impression (Brock, A, and Goldberg
1988). Similarly, the recognition of the psychological effects of false advertising, and allows
them to avoid advertising or break before starting to another channel, and she always finds the
majority of the audience began at least as much through advertising as they do through a joint
program (heating and Greenberg 1985) . To convince and access to consumers, and advertising is
the most effective resources and authority (Siropolis, 1997). Therefore, whether or not the impact
of advertising on consumer buying trends is a very important issue for investigation, user or
buyer's point of view. Moreover, from the perspective of advertisers as it will change the impact
and effectiveness of their advertisements. Similarly to George (1989), the controversy about the
effects of advertising has always existed. He accused the announcement of exploitation and build
personal feelings of anxiety and focus more on the physical side of life and damage to human
values and morals of children. At the same time, Aaker and Myers said Batra (1992) advertising
has a negative impact on lifestyle and values in society. Although Bryant said and Zelman (1994)
it is the most secure are more likely to cite the beginning, and advertisers are less interested in
the choice of media and prejudice they would only connect with. Moreover Kotwal et al. (2008)
pointed out that TV advertising has proven to be a big group together, and is now regarded as an
essential part of the modern world. Many research studies have shown that advertising plays an
important role in introducing new products and to assist in the purchase of new products and help
in the selection of the best shopping of useful products. Most of the audience said that TV
advertising advertising constantly forcing them to buy this particular product, perhaps around I

saw the ad. Due to the strong influence of advertising, it is a moral obligation advertisers to
adopt codes of conduct, and through the promotion of its products. Be the purposes of
advertising and consumer orientation is not blackmail and threats with a strong push for the
purchase of this product. Advertising correctly and effectively always helping companies and
marketers to increase brand image and increase market share (Ninan, 2008). The actual
declaration is actually another name persuasion and love or hate attitude toward a particular
product or a particular ad (Mehta, 2000; Stone et al, 2000). There are several factors that
contribute to the Declaration of many changes in consumer buying habits. Amazement, brand
image, and persuasion, celebrity endorsements, product information, and other entertainment
Although according to Haley and Balldinger, (1991), entertainment and information on a few
products, which are contained in this Declaration, is one of the main causes admiration of the
advertised product. Entertainment in fact help to involve the audience in advertising and product,
and it is clear that if an advertiser may be able to create a positive image through entertainment
and information products, it can get to engage the audience or users, and fast (Mac Kenzie and
Lutz, 1989) suggesting result of consumer buying behavior. Some users are concerned about the
quality of products, while only persuade some consumers through appropriate communication
and various factors that affect the technique. This admiration created by advertisers, through
information and entertainment, and involve the audience in and then be good reason to buy the
intention user (Smith et al., 2006). The color and advertisers do not like the product is really
about the effects of publicity because it leads to more persuasion and aspiring consumers to buy
products advertised item. Rather the quality and price of the products advertised, it is also very
important in consumer buying behavior. After admiring, another major factor is the persuasion
that can be taken in the Declaration, through innovation, brand image and to some extent through
celebrity endorsements, too. Also considered personal brand or a celebrity endorsement as the
main ingredient of effective propaganda (Aaker, 1996). Therefore, the most commonly used to
build brand image by creating a character who is actually how celebrity endorsements. Effective
advertising and the ideal is one that tries to generate customer loyalty, and build a strong brand
image, celebrity endorsements and is a strong persuasion in advertising. All these factors are real
shareholders about the impact of advertising on consumer buying behavior. Of course, before all
this some other factors such as price and product quality also affects consumer buying behavior a
bit.

Chapter 3 : RESEARCH METHODS

Method Of Data Collection In this thesis research the main data would be analyzed which is
primary data, to get the primary data sources , which is collected on first hand, we are going to
have a survey of questionnaire. A well design questionnaire would given to the audience to fill it
and give their perception about the effect on consumer choice. The questionnaire survey for this
research would be conducted among the population of university ,shopping mall and parks.
Sample Size The sample size of 250 respondents has taken into contemplation, to analyze the
data sampling would be done, it has great importance if nature is quantitative, it requires
statistical result. The sample size makes the data more appropriate and its makes easy to analyze
the choice of the consumer. The questionnaire would be presented to both genders age between
15 to 40. Sampling Technique We will sample the answer of 250 people sampling technique will
be followed for the research survey. This technique will be helpful for the research; this
technique will also provide the chance to collect the maximum data from respondent. Instrument
of Data Collection The questionnaire has design to collect the maximum data on the basis of
Likert scale , prospect can answer easily according their perception . mostly the questions are
close ended. The questionnaire has design to find the impact of advertisement on consumer
behavior ,. The questions are made to find the impact of advertisement , the questionnaire works
on analyzing the consumer choice on three breaks a) endorsement ; b)promotion ;c) digital media
. these are dependent variable to find the effect on consumer behavior..

Sample Size
Sampling is the process that is important, especially in terms of basic research is quantitative,
and data are required on statistical results. This makes the selection of the sample size is
appropriate for the research to be an important element in the search. The sample size required to
serve all residents of the target, and if the results obtained from this study are representative of
the research community. For this research study, a sample size of 250 respondents were taken
into account. University and college students formed the sample for this research study.

Sampling Technique
Simple random sampling (not probability) sampling technique is used to carry out research studies. This
technique is useful in the delivery of the survey, which is self-administered. This technology also allows
sampling to collect data from respondents maximum.

Instrument Of Data Collection


This questionnaire is not necessary to explain the design of data collection tools. It consists of a
questionnaire designed to cover membership Liker scale questions. The questionnaire was
designed to find the effect on the reputation of the brand image of the brand has on the
performance of the product. Work study on brand loyalty analysis on three key areas, including
the quality of the brand and brand equity and brand reputation. The variables used in the search
tool to find any impact on product performance.
The independent variables in this study include the quality of the brand and brand equity and
brand reputation. While on the other hand, the performance of the product dependent variables.

In this research study, regression analysis is a tool used for the relationship between brand
loyalty and product performance analysis. The use of statistical regression tool allows research to
predict the relationship between the independent variables and the dependent variables specified
in its investigation. The reason for that has been identified by regression analysis of this research
study is to gain a proper understanding of the relationship between the independent and
dependent variables that have been identified.

RESEARCH MODEL
This model shows the variable of the thesis represent both the dependent and independent
variable .
Endorsement

Promotion
Digital Media

Consumer behavior

Chapter 4 RESULT
Findings And Interpretation Of The Results
This chapter discusses the analysis of the results obtained from the collected data. Moreover,
the data s interpreted obtained from the correlation technique which was used to check the
relationship between the independent variable following are the table showed the mean of each
question.

ENDORSEMENT
Q1

DIGITAL
MEDIA

PROMOTION
Q6

3.632

Q11
2.826086957

1.756

Q2

2.528

Q7

2.184

Q12

2.384

Q3

3.896

Q8

2.423407407

Q13

2.845333333

Q4

2.392

Q9

1.584

Q14

1.88

Q5

3.02

Q10

1.664

Q15

2.469333333

TABLE 1

ENDORSEMENT PROMOTION

DIGITAL
MEDIA

MEAN

3.0936

2.136298873

2.266933333

STANDARD
DAVIATION

0.591824839

0.466607882

0.3999968

250

250

250

The above table shows the combined mean of each variable which makes the finding easy in
each variable the standard deviation is given which shows the result deviation of the result. That
how much answer can be deviated.

Correlations

Pearson
Correlation
ENDORSEMENT

PROMOTION

DIGITAL MEDIA

ENDORSEMENT

PROMOTION

DIGITAL
MEDIA

.722

.321

.168

.599

Sig. (2-tailed)
N

250

250

250

Pearson
Correlation

.722

-.067

Sig. (2-tailed)

.168

250

250

250

Pearson
Correlation

.321

-.067

Sig. (2-tailed)

.599

.915

250

250

.915

250

Correlation between product promotion , endorsement and digital media.


The above table shows the Pearson correlation values of the variables. Correlation is a method
which is used for identifying an power and to determine the direction in which the relationship is
going among two quantitative variables. The range of the value of Pearson correlation is from -1
to +1. Positive value of Pearson correlation shows that there is a strong and direct relationship
between the variables. It means, when one variable increases by 1 unit, other variable also
increase by 1 percent. On the other hand, negative value of Pearson correlation shows a weak
and reciprocal relationship between the variable. It means, when one variable increase by I unit,
other variable decrease by 1 percent. The correlation between endorsement and promotion is
strong, positive, and direct as the value of Pearson correlation is 0.722. The value is positive and
nearer to 1, which indicates that with the increase in endorsement, the promotion also increase.
The movement of both the variables is positive. Moreover, the relationship between endorsement
and digital media is positive, strong, and direct as the Pearson correlation value is 0.321 which
indicates that with the increase in brand equity, the performance of a product also increase.
Lastly, the relationship between promotion and social media is strongly weak, negative, and
indirect. The value of Pearson correlation is -0.067 which strongly weak correlation between
promotion and social media.

Chapter 5 Conclusion
For the image building of the product and better market share the advertiser should have to keep
the following things in mind. First of all the advertisements should be based on variety and
reality. There should be more emphasis on quality rather than glamour and price. While to make
an advertisement effective it should be telecasted only 3 or 4 times in a day, otherwise it creates
boredom. The advertisers should have to keep this thing in mind that an advertisement conveys
direct information about the product rather than to show the fashion and style of the model
therefore it should always have to present bare facts about the product rather glamour and
exaggeration. At the same time, the advertisers should also have to tell the price of product for
the sake of consumers convenience. Furthermore, excess of advertisements in the prime time
makes them ineffective and consumers do not remain interested in the information about the
particular product. Only primetime is not best for all advertisements as well during the drama
scenes the advertisement should not be telecasted because sometimes it creates rage and hate in
the viewers mind and heart for that particular product, which is advertised. The quality of
advertisements should be attractive and good because it keeps great impression on the consumers
mind. It is also an important factor that more prize schemes do not constrained the consumers to
purchase the goods until the quality is not good. Like wise, celebrities leave great impression
especially in the mind of their fans and status conscious viewers or consumers therefore
celebrities should have to be careful, while working in some particular advertisement. Likewise
there should be no sensationalism in the advertisement rather it should be simple but attractive.
After a detailed and comprehensive study, the researcher has explored that factors of
persuasiveness, brand image and celebrity endorsement are the most important contributing key
elements in advertising which if properly designed and utilized, then could change the
consumers buying behavior to purchasing intentions.

Future Research
The future research can be conducted in the city of Karachi on the topic of advertisement.

Limitations
The limitation of this project is due to lack of time the behavior of the people about oppo mobile
the behavior of the people of Gulistan-e- Johar and Gulshan-e-Iqbal has been analyzed this
research is limited toward these area.

REFERENCE
Gorn,G.J."The Effectt of Music in Advertising on Choice Behavior: A Classical
Conditioning Aroach". Journal of Marketing, 46 (1982): 94-101.
Haley, R.I., Baidinger, A.L., Richardson, J. and Baldwin, B.M. (1984) "The effects
of non-verbal communication in television advertising" . Journal of Advertising, 24, 4
(1984): 11-18.
Kotler, P., and Armstrong, G. (2008). "Principles of marketing" 12th ed., Pearson
Prentice hall, 396-398.
Kotwal N, Gupta, N & Devi, A (2008), Impact of TV advertisements on buying pattern
of adolescent girls, Journal of Social sciences, vol. 16 no. 1
Leiss, W.S. Kline & S. Jhally., (1986) Social Communication in Advertising: Persons,
Products and images of Well-being. Methuen Publications, New York, NY.
MacKenzie, S.B. and Lutz, RJ. (1989) "An Empirical Examination of the Structural
Antecedents of Attitudes toward the Ad in an Advertising Pretesting Context".
Journal of Marketing, 53,2: 48-65.
Marchand, R. (1985) Advertising and the American Dream: Making way for Modernity,
1920-1940. University of California Press, CA.

APPENDIX

QUESTIONAIRE
"IMPACT OF ADVERTISEMENT ON CONSUMER BEHAVIOUR"
NAME:____________________

Gender:__________________

CONTACT/EMAIL:_______________________
AGE:____________
VARIABLES: Endorsement, Promotion, Social Media

Please rate these statements on the scale of 5; where 1 stands for Strongly Agree, 2 stands
for Agree, 3 stands for Neutral, 4 stands for Disagree and 5 stands for Strongly disagree
ENDORSEMENT
1) I buy oppo because of celebrity endorsement.

1 2 3 4 5

2) My buying pattern is depending on celebrity.

1 2 3 4 5

3)l relate the celebrity with my personality thats why I buy the product
4) Celebrity Endorsement creates attraction to product

1 2 3 4 5
1 2 3 4 5

5 )Do you believe that celebrity endorsement deliver the right message about product
1 2 3 4 5
PROMOTION
6) Have you seen promotional activity of Oppo.

1 2 3 4 5

7)Do you think that oppo is gaining market with the help of promotional activity 1 2 3 4

8)What promotional activity have you noticed about oppo


a. Billboards

1 2 3 4 5

b. Stalls

1 2 3 4 5

c. Sale person's

1 2 3 4 5

9) Promotional activity helps in making customers?

1 2 3 4 5

10) Promotional activities help in clearifying people doubts regarding product 1 2 3 4 5

DIGITAL MEDIA
11) I think people notice adds on social media as compare to print media 1 2 3 4 5
12) Social media is more affective than other medium

1 2 3 4 5

13) Which media will you prefer for MOBILE product line
a. Print media

1 2 3 4 5

b. Social media

1 2 3 4 5

c. Radio

1 2 3 4 5

14) Oppo should promote its brand in PAKISTAN on large scale

1 2 3 4 5

15) Which brand advertisement add you like the most on social media
a. Samsung

1 2 3 4 5

b. Q-mobile

1 2 3 4 5

c. Oppo

1 2 3 4 5