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TheLumbiniJournalofBusinessandEconomics,2(2),7384,

December,2012
DETERMINANTS OF CONSUMERS' ATTITUDE TOWARDS
ADVERTISING IN NEPAL

By: Sajeeb Kumar Shrestha*


Abstract
This study aims to analyze whether the four belief factors namely Product Information, Social
Role/Image, Hedonic/Pleasure, and Falsity/No Sense have any significant effect on consumers'
attitude towards advertising. It is used a convenient sample of 168 respondents approaching selfadministered questionnaires survey from different locations in Kathmandu valley. Reliability
analysis, descriptive statistics, correlation and regression analysis were used to check reliability
and to explore the relationship between belief factors and the attitude towards advertising. The
results reveal that social role/image and falsity/no sense have effect to determine the attitude
towards advertising. People prefer advertisements that enforce social integration and not
exaggerated messages. Nepalese advertisements are not able to communicate product
information. It does not provide pleasure to audience.
Keywords: Attitude towards advertising, social role/image, falsity/no sense.

I. Introduction
Fishbein (1967) defines attitude as a learned predisposition of human beings. As part of a learned
predisposition human behaviour, Kotler (2000) further elaborates attitude as an individual
personal evaluation, emotional feeling attached and action tendency toward some objects or
ideas. In relations to the advertising industry, Bauer and Greyser (1968) take the view of attitude
towards advertising as the audience behaviour towards the advertising. Audience behaviour
towards the advertising can be indicated through consumers favourable or unfavorable response
towards a particular advertisement (MacKenzie & Lutz, 1989). According to Mehta (2000),

Mr. Shrestha (M.B.S., M. Phil.), TU is Teaching Assistant at Shanker Dev Campus, Tribhuvan University.
He can be reached at drsajeeb@gmail.com.

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
consumers attitude towards advertising is one of the influential indicators of advertising
effectiveness because consumers cognitive ability towards the advertising are reflected in their
thoughts and feelings and subsequently will influence their attitude towards advertising
(Mackenzie & Lutz, 1989).
Numerous researches have been carried out to find evidence of consumers' attitude towards
advertising (Andrews et. al. 1991; Muehling, 1987; Petrovici & Marinov, 2005; Ramaprasad,
2001; and Sandage & Leckenby, 1980) and how people's attitude change over time (Ramaprasad,
2001). Researchers from the advertising industry as well as from academia have been interested
in the effect of attitude towards advertising on the effectiveness of advertising (Greyser & Reece,
1971), attitude toward the advertisement (Bauer & Greyser, 1968), and brand attitude (Lutz,
1985; MacKenzie & Lutz, 1989; Muehling, 1987; Shimp, 1981; and Thorson, 1981). Ultimately,
these researchers have pointed out that consumer purchasing behaviour is affected by attitude
towards advertising (Bush et al., 1999). Advertising scholars observed that consumers' attitudes
towards advertising affect buying behaviour towards particular product category (Lutz, 1985).
Wolin and Korgaonkar (2005) found that males have stronger beliefs about web advertising
compared to females.
In Nepal, the advertising business is about Rs. 4 billion (Advertising Association of Nepal,
2012). Major medium of advertising is TV, Print and Radio advertising accounted for Rs. 3.5
billion and Remaining major medium occupied by Hoarding Board and Flex Printing etc.
Table 1
Advertising Statistics in Nepal
(in Million)
Media
Print
TV
Radio
DTA (Digital Theatre Ad.)
Others

2010/11
2015
865
750
40
650

Total
Source: Advertising Association of Nepal (2012)

Percentage
47
20
17
1
15
4320

100

Empirical investigation has been lacking in Nepalese advertising sector to know the determinants
of attitude towards advertising. So this study contributes specially to the determinants of

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
consumers' attitude towards advertising. The current study provides valuable information in
answering and supporting the following research questions:
- What is the relationship between belief factors and attitude towards advertising?
- What are the influences of belief factors on attitude towards advertising?
- What are the impacts of demographic profiles on attitude towards advertising?
As a whole, this study examines the central idea about determinants of consumers' attitude
toward advertising in Nepal. This research is conducted to accomplish the following objectives:
- To examine the relationship between belief factors and attitude towards advertising.
- To measure the influence of belief factors on attitude towards advertising.
- To analyze the impact of different demographic profiles on attitude towards advertising.

II. Statement of the Problem and Theoretical Framework


In order to measure the degree of general attitude towards advertising, a number of literatures are
accessible from 1968 (Bauer & Greyser, 1968; Muehling, 1987; and Sandage & Leckenby,
1980). The findings in all of the studies are comparable and basically they discovered that people
exert a certain degree of overall attitude towards advertising i.e. favourable or unfavourable
attitude (Durvasula et al., 1993; Muehling, 1987; and Sandage & Leckenby, 1980). Most of the
studies were conducted to gauge students' general attitude towards advertising in forms of their
beliefs and trust measured by two elemental mindsets i.e. attitude toward the institution of
advertising (purpose of advertising) and attitude toward the instruments of advertising (practices
of advertising). Petrovici and Marinov (2007) analyzed there are variations in attitude towards
advertising among Malaysians and Non-Malaysians.
Yaakop et al. (2011) conducted a survey on attitudes towards advertising: Malaysians vs NonMalaysians. This study was conducted to explore the antecedents to the formation of attitudes
towards advertising and to examine the comparison between Malaysians and non-Malaysians
attitudes toward advertising. It is found Malaysians recorded higher mean scores for all
advertising belief dimensions than the non-Malaysian respondents. Malaysians are more belief
about attitudes towards advertising than Non Malaysians.

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
Ling et al. (2010) analyzed the determinants of consumer's attitude towards advertising. The aim
of this research is to investigate the determinants of consumers attitude towards advertising
among tertiary students in a private higher education institution in Malaysia. The outcome
showed that credibility, informative, hedonic/ pleasure and good for economy positively relates
to consumers attitude towards advertising.
Munusamy et al. (2007) investigated a study about attitude towards advertising among students
at private higher learning institutions in Selangor, Malaysia. The aim of this study is to determine
whether the seven belief factors namely Product Information, Hedonic, Consumer Benefit,
Consumer Manipulation, Values Corruption, Good for Economy and Economic Role have any
significant effect on students attitude towards advertising. The results revealed that there is a
strong positive relationship between the belief factors and attitude towards advertising. The study
recommends that advertisements that are informational about sales and availability of latest
products should be the main message of advertisers if they were to target students. The message
should enhance the value of Good for Economy, which promotes healthy competition among
sellers and better quality products in the market. In addition, the advertisements at the same time
also need to be fun, exciting and enjoyable for the audience. These findings have made a
significant contribution towards theory development in the area of advertising in the Malaysian
context.
Based on extant literature, determinants such as hedonic, good for economy, product
information, values corruption, materialism and consumer benefits consistently indicate strong
relationship with consumers attitude towards advertising (Yang, 2000; Ramaprasad &
Thurwanger, 1998; Pollay & Mittal, 1993; and Bauer & Greyser, 1968). Product information,
social role/image, hedonic/pleasure and falsity/no sense are tested in this research (Pollay &
Mittal, 1993; and Tan & Chia, 2007). This study basically focuses on belief factors and attitude
towards advertising.
Product Information: Product information refers to the consumers' personal belief pertaining to
the ability of advertising to deliver rich information by means of advertisements. The Product
Information factor was the focus of much of the discussion by economists, and the advocacy
justification of advertising rests on its role as a provider of information (Norris, 1984). This
4

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
infor, it is argued, permits greater marketplace efficiencies (i.e. more exact matching between
consumers' needs and wants and producers' offerings).
Social Role/Image: Social role/image refers to the ability of advertising/advertisements to
communicate believable social integration, image and role to the audience. Advertisers must
provide up to date information about the product or brand to the public. They have to clearly
reflect level of the society in terms of fashion, consumption behaviour, leisure and recreation etc.
Advertising creates the personality of the product that should be best matched to the person
having same personality. Advertising facilitates standard of living. It is also useful for educating
people. Many companies spend much money in advertisement to create goodwill and social
image.
Hedonic/Pleasure: Hedonic/pleasure connotes the ability of advertisements to source pleasureseeking materials to the audience. The experience of advertising can be a pleasure upon exposure
or in recollection. Advertisements can be beautiful to look at, touching in their sentiment, funny
in their portrayed events, or uplifting in their music, pace, and attitude. Tsang and Tse (2005)
showed that the Hedonic factor is significantly important in effective Web marketing. According
to Ramaprasad and Thurwanger (1998) the Hedonic/Pleasure factor has a positive relationship
with attitude towards Advertising.
Falsity/No Sense: Falsity/no sense refers to consumers' belief with respect to the irritation of
advertisements through misrepresentation, misleading information and mockery and sarcasm.
Many people think that advertising is manipulating them. Product is not the same as it is told by
advertising. Advertising multiplies wants of the customers by encouraging them to buy those
products which they do not require. Advertising has been criticized for presenting misleading
information, promoting undesirable values, and persuading people to buy things that they do not
need (Katona, 1964; Pollay, 1986; and Pollay & Mittal, 1993).
Attitude towards Advertising: Attitude toward advertising is affected by audience behaviour
toward advertising (Bauer & Greyser, 1968). If the decision-makers behaviour is positive
towards advertising, he/she will be inclined toward advertising (Pollay & Mittal, 1993). The

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
advertising dimension that was researched extensively was attitude toward advertising
(Ramaprasad & Thurwanger, 1998).
In the light of these issues, the research framework is depicted in Figure 1.
Figure 1
Research Framework

Product Information

H1
H2

Social Role/Image

Attitude towards
Advertising

H3

Hedonic/Pleasure

H4
Falsity/No Sense

Research Hypotheses
This research has located following alternative hypotheses:
H1: Product Information has a direct significant impact on attitude towards advertising.
H2: Social Role/Image has a direct significant impact on attitude towards advertising.
H3: Hedonic/Pleasure has a direct significant impact on attitude towards advertising.
H4: Falsity/No Sense has a direct significant impact on attitude towards advertising.

III. Study Methodology


This study investigates the determinants of attitude towards advertising in Nepal. The research
design of this study is descriptive as well as analytical research. This study is based on primary
data only. Primary data were obtained from questionnaire administered for measuring belief
factors of attitude towards advertising.
Quantitative methods or survey research is applied for this study. Direct responses of the
respondents were taken. Data were generated in five point likert scale anchored by Strongly
Disagree = 1 to Strongly Agree =5. This research has been emphasized to confirm
Predictors

belief

factors

like

Product

Information

(PI),

Social

role/Image

(SR/I),

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
Hedonic/Pleasure (HP) and Falsity/No Sense (FN). The attitude towards advertising is dependent
variable for this study.
The population of this study is directly means all audiences who sees advertisements. It is
practically rather impossible to examine the whole population of interest. The sample size (n =
168) was computed and the respondents were conveniently selected from the customers available
in different crowd locations in Kathmandu valley.
The researcher has taken the convenience sampling methods. A total of 200 sets of
questionnaires were distributed to respondents, only 175 were returned. 9 questionnaires were
not used for data analysis purposes as the researcher found that the respondents did not follow
the questionnaires instructions and the answers were not consistent. Hence the usable
questionnaires for this research are 168 only, having 84 percent of response rate.
The study indicates that 61 percent of the respondents are graduates while the remaining of 39
percent respondents are non-graduates. 64 percent of the respondents are male and 36 percent
respondents are female. Majority of the respondents are 35-44 years of age with a steady
percentage of 44 percent, 25 percent of the respondents fall between the age of up to 24 years,
whereby 21 percent are in the range of 25to 34 years old and 10 percent respondents are age of
44 and above.
The final version of the questionnaire was made up of three major parts: (i) evaluation of four
predictor belief factors (ii) evaluation of attitude towards advertising, and (iii) demographic
questions. Databases such as SPSS 18.0, Excel 2002, were used for this research.
In order to accomplish the objectives of the study, reliability analysis was done to check the scale
item's reliability (George & Mallery, 2009). Descriptive statistics like mean and standard
deviation were used. Correlation analysis was done to check the relation between the predictors
and dependent variables. Multiple regression analysis was used for testing hypotheses. The result
of analysis has been properly tabulated, analyzed and interpreted.
Regression model
AA = + 1 PI + 2 SR/I +3 HP + 4 FN + U..(1)

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
Where, AA = Attitude towards Advertising; = Constant; i = Co-efficient or slope of
regression model; PI = Product Information; SR/I = Social Role/Image; HP = Hedonic/Pleasure;
FN = Falsity/ No Sense; and U = Error Term.
This study is limited to determine the belief factors' importance on attitude towards advertising.
The study has some limitations: first, the study is based on survey research and data are collected
through self administered questionnaire methods from the selected respondents. Second, this
research gives the limited information about the customers opinions where it is very difficult to
probe in their mind. Third, Convenience sampling is included for this study. Lastly, data are
primary in nature.

IV. Study Results and Discussion


Reliability Analysis
The reliability of used measurement scales were tested using Cronbach's alpha coefficient.

Code
PI
SR
HP
FN
AA

Table 2
Reliability Analysis
Particulars
Product Information
Social Role/Image
Hedonic/Pleasure
Falsity/No Sense
Attitude towards Advertising

Cronbach's Alpha
0.60
0.77
0.52
0.86
0.71

Table 2 shows the results of reliability of measurement scales used for measuring Predictors and
dependent variables of belief factors of attitude towards advertising. The applied measurement
scales exhibits satisfactory levels of reliability. One scale item PI6 (There is better value for
advertised products than unadvertised products; among 6 items) was eliminated from product
information. One scale item SR1 (Advertising keeps me up to date with friends from various
fields; among 5 items) was eliminated from social role/image. Two scale item HP3 (Sometimes
advertisements bring to my mind pleasant memories) and HP4 (Sometimes I take pleasure in
thinking about what I saw, heard or read in advertisements) among 5 items were eliminated from
hedonic/pleasure. Three scale items FN2 (There are too many exaggerations in advertising
today), FN3 (Advertising often persuades people to buy things they really dont need or should
not buy) and FN6 (In general, advertisements present a true picture of product advertised) among

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
6 items were eliminated from falsity/no sense predictors. For attitude towards advertising (AA)
variables, all the items were accepted to increase the value of the measurement.
Descriptive Statistics
Table 3
Descriptive Statistics
Particulars
Product Information
Social Role/Image
Hedonic/Pleasure
Falsity/No Sense
Attitude towards Advertising

Mean
4.04
3.90
3.63
3.84
3.96

S. D.
0.49
0.68
0.86
0.71
0.73

Table 3 shows the mean of product information, social role/image, hedonic/pleasure, falsity/no
sense and attitude towards advertising are above the level of 3.0. All the variables have standard
deviation below 1. It means that the mean result is accurate. The mean value of product
information is reported highest as 4.35. This shows that the product information is greater
determinants of forming attitude towards advertising.
Table 4
Qualification and Attitude towards Advertising
Qualification
Mean
Graduates
3.94
Non Graduates
3.99

Std. Deviation
0.77
0.67

Table 4 reports that non graduates have shown some more on attitude towards advertising.

Gender
Male
Female

Table 5
Gender and Attitude towards Advertising
Mean
3.92
4.04

Std. Deviation
0.77
0.66

Table 5 reports that female have higher attitude towards advertising than male respondents.

Age
Upto24 yrs
25-34 yrs
35-44 yrs
44 and above

Table 6
Age and Attitude towards Advertising
Mean
4.07
3.88
4.05
3.51

Std. Deviation
0.60
0.69
0.79
0.74

Table 6 reports that up to 24 years younger and 35 to 44 years respondents have higher attitudes
than other age groups respondents.
Correlation Analysis

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
Karl Pearson's Correlation coefficient was used to obtain the relationship between dependent
(attitude towards advertising) and predictors variables (belief factors).

(1) AA

Correlation
Sig.
Correlation
Sig.
Correlation
Sig.
Correlation
Sig.
Correlation
Sig.

(2) PI
(3) SR_I
(4) HP
(5) FN

Table 7
Correlation Analysis
(1)
(2)
1
.311**
0.00
.373**
0.00
-0.074
0.341
-.404**
0.00

(3)

(4)

(5)

1
.363**
0.00
-0.09
0.246
-.382**
0.00

1
-0.012
0.877
-.367**
0.00

1
0.1
0.196

**. Correlation is significant at the 0.01 level.

All p-values are less than .01 (p0.01) and all coefficient values between the attitude towards
advertising and belief factors are significant. Hedonic/Pleasure variable is not correlated
significantly to attitude towards advertising, product information, social role/image and falsity/no
sense. Social role/Image variable is moderately correlated with attitude towards advertising in
the positive direction. Falsity/No Sense variable is highly correlated with attitude towards
advertising in the negative direction.
Multiple Regression Analysis
Table 8
Regression Analysis of Belief Factors and Attitude towards Advertising

(Constant)
Product Information
Social Role/Image
Hedonic/Pleasure
Falsity/No Sense

Beta Coefficients
3.436
0.180
0.247
-0.028
-0.277

Std. Error
0.711
0.114
0.082
0.059
0.079

R
0.485
R2
Adjusted R2
0.216
Std. Error of the Estimate
F Value (df 4,130)
12.532
Sig. at 5% level
AA = 3.436 + 0.180 PI + 0.247 SR/I 0.028 HP - 0.277 FN

t
4.835
1.580
3.009
-0.480
-3.507

Sig.
0.000
0.116
0.003
0.632
0.001

0.235
0.648
0.000

From table 8, F-value and p-value of the Model is 12.532 and 0.000 respectively which is
significant at 5% level of significance. So, the model is fitted linearly. R square of this model is

10

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
0.235 or 23.5% which means only 23.5%

of variation in attitude towards advertising is

explained by variation in belief factors. Social Role/Image is emerged as the most important
predictor of attitude towards advertising, followed by product information. More positive or
higher the social role/image and product information of the advertisements, the more positive or
higher the attitude towards advertising among the respondents.
Test of Hypotheses
H1: p-value of product information coefficient is 0.116 which is not significant at 5% level of
significance. So, hypothesis 1 is not accepted. Product Information have not shown a
significant direct effect on attitude towards advertising.
H2: p-value of social role/image coefficient is 0.003 which is significant at 5% level of
significance. So, hypothesis 2 is accepted. Social Role/Image has a significant direct effect
on attitude towards advertising.
H3: p-value of hedonic/pleasure coefficient is 0.632 which is not significant at 5% level of
significance. So, hypothesis 3 is not accepted. Hedonic/Pleasure has not a significant direct
effect on attitude towards advertising.
H4: p-value of falsity/no sense coefficient is 0.001 which is significant at 5% level of
significance. So, hypothesis 4 is accepted. Falsity/No Sense has a significant direct effect
on attitude toward advertising.
Major Findings
-

From descriptive statistics, all the predictors, i.e., product information, social role/image,
hedonic/pleasure and falsity/ no sense have greater impact on creating attitude towards
advertising.

Non graduates have shown some more interests on attitude towards advertising.

Female respondents have higher attitude towards advertising than male respondents.

Up to 24 years younger and 35 to 44 years age group respondents have shown higher attitude
than other age group respondents.

11

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
-

Social Role/Image and Falsity/No Sense belief factors are important predictors for forming
attitude towards advertising in Nepal. It is because the advertised products do not give more
information to the respondents. There is situation of cluttering the advertising in media. Most
of the advertising is dubbed Indian advertisement and few Nepali advertisement are not
creative.

Product information and hedonic/pleasure have negative impact on attitude towards


advertising in Nepal.

V. Conclusions
The main aim of this research is to identify the determinants of consumers' attitude towards
advertising in Nepal. Based on study findings, it can be concluded that customers attitude is
favorable when advertisement emphasizes the social integration/image to the audience. People
accept the advertisement as a part of socialization element and they want to see their status in the
advertisement. For e.g., the high ticket items' advertisement of motorbikes, car, jewelleries,
television, laptop, and smart phone reflects people's personality. In addition to this statement,
peoples do irritate from misleading and misinterpreted advertisements. Many exaggerated
messages on the advertisements do not please people.
Nepalese advertisements are not able to communicate product information. Likewise, it does not
provide pleasure to audience. It is not beautiful to look, fail to touch the sentiment of the people
and not funny. Much of the advertisements are dubbed advertisement from Indian advertisement.
Non graduates have shown some more interests on attitude towards advertising than graduates.
Female respondents have higher attitude towards advertising than male respondents. Up to 24
years younger and 35 to 44 years age group respondents have shown higher attitude than other
age group respondents. It is seen surprising that active generation people of age group 25 to 34 is
indifference in advertising.
This study is consistent with Yaakop et al. (2011), Ling et al. (2010) and Munusamy et al. (2007)
that social role/image and falsity/no sense has direct effect on consumers' attitude towards
advertising.

12

TheLumbiniJournalofBusinessandEconomics,2(2),7384,
December,2012
These findings provide some insights to increase the favourable consumers attitude towards
advertising. Advertising agencies should be aware to ensure the sources of advertisement are
credible, trustworthy and believable; keep the advertising message informative, customer
oriented and up to date; incorporate the elements of fun, excitement, surprises and pleasure in the
advertisement messages, and lastly emphasize the concept of 'Nepaliness' to create favourable
consumers attitude towards advertising in Nepal.

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