The impact of Advertisement on

consumer behaviour; a case study

of Walton Bangladesh

Submitted By:
Group 6

NAME BATCH ROLL

Aynul Bashar Amit 53D 3

Md. Ahsanuzzaman 52D 59

Md. Abdullah Al Forhad 53D 2

Md.Ziauddin 52D 16

Suvro Shahriar 53D 33

Asif Ashraf 48D 19

Table of Contents
1.0 Introduction ...................................................................................................................................... 3
1.1: Introduction to the chapter........................................................................................................... 3
1.2: Background of the study ............................................................................................................... 3
1.2.1: Overview of the academic area .............................................................................................. 3
1.2.2: Overview of business context ................................................................................................. 3
1.3 Research Questions and hypothesis ........................................................................................... 4
1.3.1: Research question .................................................................................................................. 4
1.3.2: Research objectives................................................................................................................ 4
1.3.2: Research hypothesis .............................................................................................................. 5
1.4: Significance of the proposed study................................................................................................ 5
1.5: Organization of the proposed study .............................................................................................. 5
1.6: Conclusion of the chapter ............................................................................................................. 6
2.0: Literature review .............................................................................................................................. 7
2.1: Introduction.................................................................................................................................. 7
2.2 Branding and Advertising ............................................................................................................... 7
2.3 Impact of branding on consumers ................................................................................................ 12
2.4 Conclusion of the Chapter ............................................................................................................ 14
References ............................................................................................................................................ 15
1.0 Introduction

1.1: Introduction to the chapter

This section evaluates concepts and theories on advertising and consumer behavior with
reference to Walton Mobile Bangladesh. It also provides an overview of case company and
further states the aim and objectives of research as well as its significance of the research to
business and academic community and the overall structure of the proposal.

1.2: Background of the study

1.2.1: Overview of the academic area

The concept of advertising entails calling the attention of the audience towards something such
as the brand and its products in the market. Different types of advertising used by Walton include
outdoor and outdoor advertising, retail, print media, broadcast, celebrity, surrogate and public
service and most recently online advertising. Effective advertising have persuasive messages
communicated to the right audience in the right place and time at the right cost (Li, Daugherty &
Biocca, 2002). The objective of undertaking advertising is to familiarize the brand and its
products, generate desire, interest, and the drive to purchase products and services (Park, Lee &
Han, 2007). Consumer behavior involves a number of processes in the minds of consumers with
regard to transactions in the market which occur before, during after the purchase of goods and
services (Quester et al, 2010). It is a cognitive process that leads to the selection of certain
products from a range of alternatives products offered in the market.

1.2.2: Overview of business context

At present a lot of local and international mobile companies are operating in Bangladesh and some
of them are Symphony, Microsoft, Walton, Apple, Samsung and Sony. Among all companies
Walton is playing a very big role in term of sales volume, growth, market share, profit, customer
satisfaction etc. Walton mobiles are cheap in cost, good looking and provide high quality.

Cyber Media Research (CMR), a South Asia-based media services group, in a market review says
that Walton, a Bangladeshi brand of cell phones, has already moved one step ahead leaving
international brand Samsung behind in the local mobile phone market. Walton now holds second
position, while Samsung has slipped to the third in the local cell phone market.
Walton Hi-Tech Industries Ltd (Walton HIL) is one of the best companies in the electronic sector
of Bangladesh. Walton is one of those few Bangladeshi companies that export electronic products
since most of the companies in Bangladesh import products of various famous brands. The
company was established in 1977. Since then, it has been setting new benchmarks in production
of electronic goods in Bangladesh. If we consider both price and quality Walton is providing high
quality product to customers. There are 120 outlets of Walton throughout the country so that
customers everywhere can buy Walton products.

Now a day’s every company emphasize on building brands because without branding it is difficult
to keep pace with the tough competition and for building brand advertisement is the main weapon.
As for example, in Pakistan Lever Brother has done the advertisement of its Vegetable Ghee
‘DALDA’ in such a way that the term Vegetable ghee in Pakistan is replaced by DALDA. Same
thing happened in India with toothpaste by ‘Colgate’ brand. It means some brand is so popular
amongst people so products are being known with their brand rather than its usefulness.

For promotional campaign Walton previously distributed the brochures to the customers by going
door to door but now give advertisement on T.V, newspaper and billboard, participate in DITF
every year, sometimes give mobile phone while purchasing their product, arrange many fair in
different time period .In many advertisement Walton has showed, as domestic products, it`s
quality, Low price and all has gained popularity. A new research on how advertisement have
changed consumer behavior of Walton will help to understand how a suitable promotional can be
developed for a new product and the participants will be different families in urban cities and
Dhaka. The data will be collected by face-to-face interview at home.

1.3 Research Questions and hypothesis

1.3.1: Research question

What are the impacts on customer behavior through advertisements? How does customer
behavior change with the help of advertisements?

1.3.2: Research objectives

With the advancement in the media, it is becoming very easy to send your massage to target
customers. During this intense competitive business environment there are number of
organizations that have developed their brands. In this regards Walton is considered one of the
vital company that had achieved excellent success. Therefore the current study will help the
researcher to analyze the impact of advertisement on the consumer perception and the brand itself.

Therefore the study will explore the following objectives:

Objective

1. To critically analyse the impact of advertisement on cell phone industry

2. To analyse the critical success factors for the development of a Cell phone brand
3. To examine the potential impact of advertisement on consumer behaviour
4. Investigation of information regarding advertisement strategy

1.3.2: Research hypothesis

Ha: There is relationship between advertising and the change in consumer behavior of Walton
Bangladesh consumers.
Ho: There is no relationship between advertising and the change in consumer behavior of Walton
Bangladesh consumers.

1.4: Significance of the proposed study

The findings of this study will provide marketers with current and relevant data to improve
effectiveness of advertising that will induce purchase behavior of consumers towards products
marketed under their brands and promote sales. The results provide updates to the empirical
outdated studies in the field of research. The researcher will gain first-hand experience on
application of theories in the real world situation which is essential in future profession in the
area of marketing.

1.5: Organization of the proposed study

The proposal is organized into three chapters; introduction, research review and methodology
chapters. Chapter one provides the background of the study, chapter two will review relevant
literatures, and chapter three identifies and justifies research methods used in conducting the
research.
1.6: Conclusion of the chapter
It is evident that advertising impacts on the consumer brand perception and behavior and this
explains continued huge investment by Walton Bangladesh in advertising. It also found different
types of advertising used by corporations to generate desire, interest, and the drive to purchase
products and services. Finally, there are various factors influencing the purchase decision of
consumers in Smartphone market in Bangladesh.
2.0: Literature review

2.1: Introduction
This section reviews related studies, concepts and theories of advertising and consumer purchase
decision. It looks at different types of advertising used by corporation, factors influencing
purchase decision of consumers and impact of advertising on purchase decision.

2.2 Branding and Advertising

According to Roman, K. (2003) advertisement is an idea for the business. It is process of creation
to inspire people (P: 3). He further argues it is a process of understanding about business ideas
where they come from. It also emphasize how they can be protected. Thus generation of ideas with
respect to advertisement is soul of business (P: 4).

While Goddard, A. (2002) writes advertisement should not be limited to promotion of branded
products but it involves the enhancement of image for the organization (P: 8).

From these arguments it is summarized that advertisement is not only important for sells of
products but it is more important to breathe the organization itself. It appears as material thing like
texts but its character is like metaphor of soul in living animals on which it prospers or becomes
inert.

Advertisement is for promotion of products but advertisement itself need an appropriate medium
by which it can be spreads around the target people and stimulate their desire. Therefore
organization should take care of advertisement strategy to launch its products. It is vital to
understand that products which are going to be launched or advertised should fulfil consumer’s
need and requirements according to their attitude and way of living. Organization can only be
successful in building their brand through a product which satisfies the customers’ needs. In short
this is the process of branding and evolving good products by which producing good products
brand of organization poses to better image.

For success and failure of brand depends upon the strategy of advertisement. Strategies are
foundation on which brands are built. They keep the advertising and other marketing elements on
track and build a clear and consistent personality. They represent the soul of a brand and a crucial
element is success. If strategy is right and promise and core benefits are going to strike the
consumer in the head or heart or gut then the advertisement strategy is beloved to be successful,
which need to be clear in communication to fulfil the promise given by organization, the first thing
to be look in advertisement is the benefits of consumer and the core idea are the heart of the
strategy. A creative brief relates the strategy to the current situation and objectives. At its worst a
creative brief baffles the creative team with vague statements and catchphrases. At its best it guides
with a tightly defined strategy and stimulates with a large goal. The team should say ‘I get it
(Roman, K. 2003: 12).

While organization is planning to design strategy for advertisement to build better brand image, it
is prior to take objectives to achieve goal. The first goal of organization would be what
organization is going to do for consumers. Organization should always keep in mind that the
purpose of advertisement is to sell the products to the consumers.

Strategy is long term planning to uphold the brand image of an organization and it is to be
practically implemented. Thus it involves the choices of market segmentation and need to position
advertisement strategy. In continuously changing environment the adopted strategy need to be kept
flexible to get competitive advantage. Therefore it needs to be replacement of old strategy by
visionary new and valued strategy to achieve long term goal by short term wins.

To build a strong brand it needs to consider an analysis the impact of brand on consumer while the
brand is at developing stage. It needs a research of market, competition, behavior of people, and
certain external and internal factors. Market research involves identifications of some product,
which is not known by its usefulness but it is more familiar with some brand name. As for example,
in Pakistan Lever Brother has done the advertisement of its Vegetable Ghee ‘DALDA’ in such a
way that the term Vegetable ghee in Pakistan is replaced by DALDA. Same thing happened in
India with toothpaste by ‘Colgate’ brand. It means some brand is so popular amongst people so
products are being known with their brand rather than its usefulness.

Branded and Unbranded

It has been argued that branded items are more reliable than unbranded items. It has some reason
behind this argument, one is braded items are superior in quality and performance. Second
argument is customer can expect after sales services from branded items due to image of suppliers.
Some contradictory arguments also support unbranded items. One argument is unbranded items
are cheaper and it is not always true that they are poor inequality and performance.
Brands are connected with the image of organizations that's why it needs to influence on
organization and vice versa. It is argued that branded products are not costlier than unbranded but
the higher prices of branded products include the value of good quality, reliability, performance
and after sales service

According to Roman & Maas for an established product continually, test how far is up. Try higher
spending levels, new media in new market. If you‘re fortunate enough to have a brand that is
successful, it’s wise to have a spending test in the market at all times. If it works, roll it out and
start another test (p.52).

One of the interesting question advertiser’s faces is whether to concentrate all efforts on a single
umbrella brand or to segment efforts into targeted ‘sub-brands. Since targeted messages are
generally more effective, that has to be balanced with the economies of promoting one brand. The
general principle is to avoid sub brands until they are large enough to sustain their own media
budgets.

When any organization makes advertisement then it should take first step to check this
advertisement. It is necessary that advertisement should attract the minds of the consumer if the
advertisement attract their mind then they buy products when the product related the consumers
life style and fulfil its need then this brand become consumer‘s part of life . After that they trust
on that brand and tell the people about that brand so they doing social marketing for that brand.
Brand becomes popular and the symbol of the organization. Media getting through uprising radio
print media, TV, now internet etc. Media makes advertisement relevant to culture of the country.
According to Roman, Clutter on television-the time devoted to non-programming content like
commercial and promotions-continues to increase. Now up to 18 minutes each hour in some time
periods clutter makes viewers less likely to watch or remember ads.

The marketing advertising is just like a bullet, and we think of a gun being nothing without a bullet.
So, in this period without advertising marketing is nothing. Adverting directly affects the brain,
capturing the item being sold.
The organization, every day, will need more customers to consume their product, so to target the
Blue Ocean areas, and get the consumer through advertisement. In adverting you will need to tell
the consumer about your product and brand clearly, because now there are so many competitors
in the market. So, the organization will want consumer to be familiar with their product and
remember the name of their product.

Now in the adverting, organizations must consider the audience and make their advertisement
suitable for the consumer. For example, if the product is related to young children, then the
advertising will form around cartoons and comedy. Whereas, if it is related to old aged people,
then it will be related to their mind-sets, and not children’s comedy. As well as this, if it is related
to teenagers, the adverting will take a more energetic form.

According to Adcock Halborg Ross, in their fourth addition, adverting is perhaps the first thing
people think about when considering marketing. You will already know that it comes at the end of
the marketing process after a great deal of effort to ensure that the adverting offer is worth
promoting. However, it can be the most visible part of the marketing process. Main media
advertising with multi - million budgets is undertaken by major consumer’s goods companies.
These are only a small number of the total organizations who use adverting to communicate with
their public. For the major company’s large amounts of money are involved and the impact of the
adverting creates strong recalls. Through advertising, they try and influence the behavior and
beliefs of the consumers. (p.294)

Brand:

According to Adcock Halborg Ross, in their fourth addition, the strength of a brand is reflected in
two ways. Brand awareness, brand beliefs, brand association and brand loyalty. Branding usually
develops from a distinctive identification, then given to a product or range of products and through
using and promotion this image becomes established in the market place. Brand is your experience,
when you are talking about a brand; you are discussing your experience that the brand gives you
and how much satisfaction you get when using it. You give the name of brand related to your
satisfaction (p. 209).

According to Lewis P.Carbone, experience and brand are not one and the same and therefore
should not be used interchangeably, if you want to optimize the value of them both.
There are many effects of advertising that fall very short of persuasion. These effects are not
obvious, but they contain a very big result of the way advertising works. To understand advertising
correctly, we need to identify and calculate these effects. Although, these miner effects can
influence which brand we select, particularly when all other factors are alike and when substitute
brands are a great deal similar. Advertising attempts to notify and convince a large number of
people with a solitary communication. Adverting has any phases to influence the customers. In
his, the common factors may not always be blatantly understandable. Personal advertising,
classified advertising, manufacturers consumer advertising, Services advertising, Retailer
advertising, Trade advertising and Industrial advertising etc. (p. 45).

Impact of advertisement on Brand

The sole mission of advertisement is to develop the brand, means to improve the brand value. This
is done by many large organizations to improve the sales and profits. But it requires investing in
advertisement more and more. Brand value consists of quality, performance and investment made
for the brand. Brand value is an intangible asset for the organization.

According to Adcock, D. et al (2001) brand involves product and set of values. According to them
product is visible symbol but it preserve hidden and imaginary set of values. Values is also
determined as a perceived quality of the product or perceived value for money (p. 211).

Sutherland, M. Et al (2000) write that when we stop advertisement it will be harmful to our
businesses. We may lose our brand value. They argue that in 1998 a major American food brand
company reduced its budget more than half. The result is dramatically reduced 24% in the sell.
They argue that some time stopping advertisement is good decision, but again it could be a time
bomb (pp-161-162).

From above argument is cleared that at the time of economic recession or internal financial crisis
it is advisable to reduce the advertisement but it is also worth will that long term decrease in
advertise budget is big risk for a firm. It is on the skill of management in how far you go in reducing
the budget and in what extent. It should be also matter of caution some competitors may come
with powerful advertisement strategy, while we are reducing advertisement budget.
2.3 Impact of branding on consumers

This article is related to advertisement effect, and this article discusses that Indian consumers are
appropriately adapted and aware about products; media channels that provide companies to back
with consumers are adopting in variety and reach. Consumers are accepting better-off, leading to
aggression in the market abode for customer products. The aftereffect is that customer companies
are increasingly pertained with business issues, as they seek to run in the distance of their articles
and explain appraises to customers. Media commercial is of alarm to companies, as channels
multiply and object offerings become added forward-thinking and bigger and bigger allotment of
the business mix (Arens, Williams F. 1996).
Companies do not accept any added advantage except advertisement. The better challenges in the
foreground of companies are to recognize customer’s insights and hit the target. When the
accelerated advance of assorted brands in India has led to a jump in opposition and consumers are
familiar with various features of brand in the market, it becomes all-important for manufacturers
to accept the above factors attracting buyers to his own brand. The analysis of 538 about called
consumers of Pune/India advised the role played by media on customer produce best of Cadbury
Dairy Milk (chocolate brand). Results appear that the age accumulation of consumers does not
accept convincing aftereffect on succession of advertising by Cadbury Dairy Milk. It also shows
that 37.7% of the consumers adopt Cadbury Dairy Milk further than additional brands of chocolate.
The major intelligence forecast alternative is advertisement (52.6%). TV commercial was a lot of
adopted by78.8% of the respondents of all the media used. High alternative for advertisement is
articulation for companies that wish not alone take up their market but to access their market share.
Advertising and superior accept above access on consumers’ alternative for Cadbury Dairy Milk.
Having been accepted for added than 15 years by majority of the respondents and still abide their
admired chocolate, the brand has absolutely enjoyed a prolonged life cycle allegedly getting
regenerated by advertising.
Based on this study, advertisement and better-quality is the top of factors agreeable for the success
of Cadbury Dairy Milk. The association of this is that added variables assume not to calculation
abundant to the consumers as continued as the superior of an object is maintained and the cast is
as well accurate by abundant commercial reminding and persuading consumers to abide to buy.
Majority of the consumers claimed to accept accepted Cadbury Dairy Milk over 10 years. And for
Cadbury Dairy Milk to accept been in actuality for added than 20 years and still abide the
contentment of abounding consumers of chocolates, it is axiomatic that the cast has enjoyed almost
abiding product cycle. The suggestion as well showed that advertisement is the above forerunner
of associate of Cadbury Dairy Milk and Television is a lot of able average which a lot of consumers
cited.

The date an object is in its product life cycle is actual important to a banker as it advice in free the
blazon of marketing strategies to be boarded aloft in account of the said product. Concerning the
commercial media, this abstraction appear that Television is a lot of able media acclimated in
advertising a product. In appearance of this, added application should be accustomed to television
as an average of advertising because of motion; sound, and appropriate beheld effects, Geographic
advantage as well the object can be demonstrated and declared on T.V. The aggregation should
apply chip commercial of their object and admeasure added budgets to TV adverts due to the
consumers’ alternative on it (Williams A. F. 1996).

Advertising as Commercial Persuasive Force

Proponents of this appearance are consistently analytical of advertising. They argue that authentic
ability about consumers – how they buy, why they buy and area they buy – is accidental as it is
accessible to dispense helpless buyers into departing with their money in acknowledgment for
products that they do not want (Ehrenberg, 1997, Ambler, 2000).

These types of models accept survived admitting assorted empiric studies assuming that the
appearance of commercial as a acerb actuating force is abundantly unfounded.1 These closing
advisers adduce an another appearance of advertising, suggesting an abundant weaker and beneath
anticipated and impact on consumers.
2.4 Conclusion of the Chapter
From above literature review it is summarized that advertisement is an idea and process of creation
to inspire people to increase the business.

Advertisement represents the soul of a brand and its crucial element is success. If strategy is right
and the promise and core benefits are going to strike the consumer in the head or heart of the
consumers, then the advertisement strategy is beloved to be successful. It is also necessary to be
clear about communication of advertisement to fulfil the promise given by organization. The first
thing to be look in advertisement is the benefits of consumer and the core idea. These are the heart
of the strategy. It is also noticed that adverting directly affects the mind of consumers. Advertising
attempts to notify and convince a large number of people with a solitary communication.
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