An Empirical Study On Impact of Advertisement With Reference To Fast Moving Consumer Goods in Chennai

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Volume 6, Issue 1, January (2015), pp. 280-290 © IAEME
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Volume 6, Issue 1, January (2015), pp. 280-290
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AN EMPIRICAL STUDY ON IMPACT OF

ADVERTISEMENT WITH REFERENCE TO FAST
MOVING CONSUMER GOODS IN CHENNAI
R. Punniyamoorthy
Ph.D Research Scholar, Thiru-vi-ka Govt arts college, Thiruvarur
Dr. B. Parthiban
Head, Department of Business Administration, Thiru-vi-ka Govt arts college, Thiruvarur
ABSTRACT
This paper aims to explore the role of advertisement on attitudes towards buying behavior.
questionnaire has prepared to evaluate the impact of advertisement. The sample data has been
collected from one of the reputed engineering college in state capital region Chennai. The consumers
are chosen between the age limit of 18-21. One of the important food segments in FMCG has been
taken into account especially the packed foods. Five brands has been taken into consideration as
FMCG’s brand Lays, Kurkure, Bingo, Haldirams and Parle. Interviews were made in respect of their
co-relations with advertisements. These results of this research exposed that advertisement attracts
towards the preference and choices to influence the consumer buying behavior. The aim of this paper
is, on one hand, to know the impact of advertisements on consumer behavior in fast moving
consumer goods especially packed foods, On the other hand, to find out the effective media of
advertisement. Prior to the formal survey, a survey was conducted in the form of questionnaires and
interviews. After refining some questions, an improved questionnaire was developed. Then the
questionnaire was distributed among 100 consumers with a response rate of 100%.
Keywords: Consumer Behavior, Advertisement, FMCG, Purchase Intention.
280
R. Punniyamoorthy & Dr. B. Parthiban, “An Empirical Study On Impact Of Advertisement With Reference To Fast
Moving Consumer Goods In Chennai” – (ICAM 2015)
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
INTRODUCTION
The objectives of all business are to makes profits and a merchandising concern can do that
by increasing its sales at remunerative prices. This is possible, if the product is widely polished to be
audience the final consumers, channel members and industrial users and through convincing
arguments it is persuaded to buy it. Publicity makes a thing or an idea known to people. It is a
general term indicating efforts at mass appeal. As personal stimulation of demand for a product
service or business unit by planting commercially significant news about it in a published medium or
obtaining favorable presentation of it upon video television or stage that is not paid for by the
sponsor. On the other hand, advertising denotes a specific attempt to popularize a specific product or
service at a certain cost. It is a method of publicity. It always intentional openly sponsored by the
sponsor and involves certain cost and hence is paid for. It is a common form of non- personal
communication about an organization and or its products idea service etc. that is transmitted to a
target audiences through a mass medium. In common parlance the term publicity and advertising are
used synonymously.
Advertising plays an important role in the process of moving the goods from the producers
to the consumers. With mass marketing to distribute the output of production, the GDP may increase
to a considerable extent. Advertising helps to increase mass marketing while aiding the consumer to
choices and preferences from amongst the variety of products offered for his selection and option. It
was only in the latter half of the 19th century, that mass advertising, as we know it today, came into
being. Mass production became a reality, and channels of distribution had to be developed to cope
with the physical movement of goods, creating a need for mass communication to inform consumers
of the choices available to them. We are all influenced with advertisements in our day to day life.
SCOPE AND NEED
This present study helps in exploring the impact of advertisement on customer behavior, It
is understood that advertisement is not only use for awareness about the product and services it also
play an important role in purchase intention, selection option and preference towards the products.
Moreover the study will help whether the direct or indirect advertising can improve the organization.
It is a matter of fact that all the companies spend a lot of money on advertisements to establish the
product in market as well as brand .It is also important for the companies to know whether their
advertisements are effective or not.
REVIEW OF LITERATURE
Extensive academic research has been conducted on the psychology of emotion (e.g.,
Lazarus 1984) and the ways in which ad-evoked feelings may influence consumer response to
marketing communication (e.g., Batra and Ray 1986; Holbrook and Batra 1987). Scholars have also
observed that advertising may evoke both positive and negative emotions when seeking to persuade.
Indeed, Brown, Homer and Inman (1998, p.115), suggest that from a practical perspective, “the
relative strength of positive and negative feeling effects potentially could guide advertisers’
decisions regarding executional strategies.”
281
According to the Morden (1991) advertising gives the knowledge about the product and
create the idea in mind about it. Rosaldo (1989) cited in Monaghan and just (2000) found that culture
influences all human activity is about culture. New technology give the different product to the
consumers, it enhance the product quality and change the style of product (Stantone and Futrell
(1987). Geert Hofstede (1984) has been more studied about culture on work values; he says that
change in culture can be easily understand but the evaluation of the culture in the human nature is
difficult. Perception is the mental process, the information is got by the individual from the
environment after organizing it, and individual draws meaning from it. Park and Lessing (1981)
proposed that a better understanding of consumer decision making process by the subjective
knowledge because the objective knowledge is independently related to the consumer perception and
their decision making behavior.
OBJECTIVE OF THE STUDY
1. To study the impact of the advertisements on consumers behavior in educational institution

2. To find out the most effective media for advertisement.
3. To identify the attitude towards advertisement and creation of awareness
4. To determine the relationship between advertising and purchase decision.
HYPOTHESIS
H1: There is a significant effect of the advertisement and preference of the consumer.
H2: There is a significant effect of consumer preference and media.
H3: There is a significant effect of advertisement and purchase decision.
RESEARCH METHODOLOGY
The methodology of the study depends mainly on the primary data collected through a well-
framed Questionnaire to elicit the well-considered opinions of the respondents. The research design
undertaken by the researcher is Descriptive Research Design. Stratified sampling technique was used
for the survey.
Data was collected through primary and secondary sources.
1. Primary data: primary data was collected with the help of structured questionnaire and personal
interview.
2. Secondary data: Source of secondary data was collected with help of published reports,
magazines, newspapers and the websites. A sample of 100 was taken for the purpose of study and
analysis. Sampling unit consists of all consumers having interest in FMCG goods especially packed
foods at reputed engineering college in Chennai. This study was undertaken from August 2014 to
November 2014. The questionnaires were designed, to know the point of view of public people
regarding the impact of advertisement in changing the consumer behaviour. To complete the survey
of 100 samples. Total questionnaire were distributed of 100 and finally we receive 100 so our
respondent rate is 100%. The questionnaires are filled by First, Second, Third and Final year of
engineering students. After the data collection in form of questionnaire, The collected data was
entered in SPSS 17. The obtained data were then processed by Regression analysis & karl pearson
co-efficient.
282
LIMITATIONS
The research of the study has several limitations. The first limitation was about the sample
selection because the entire sample is taken just from particular engineering college due to time
constraints. Second, limited brands of packed foods were used in our research for getting the
consumer perception. Third, It was also difficult to get proper information from the people because
they were indulging in some other activities.
TOOLS AND ANALYSIS
Distribution of respondents by year of study
Year of students Frequency Percentage

First year 14 14
Second year 38 38
Third year 29 27
Fourth year 19 19
Total 100 100
As shown in table the study sample was representative of all the years of study with the
second year students forming the highest proportion of the sample.
The respondents were also asked to indicate their age bracket. The study findings are
DISTRIBUTION OF THE RESPONDENTS BY AGE BRACKET
Age bracket Frequency Percentage

18-19 52 52
20-21 48 48
Total 100 100
The findings indicate that majority of the students at the engineering college were aged 18-19
years.
The study sought to establish the gender of the respondents and the findings are as
GENDER DISTRIBUTION OF THE RESPONDENTS
Gender Frequency Percentage

Male 32 32
Female 68 68
Total 100 100
From the table, The study recorded a higher response rate from males than females in their
various years of study.
283
FREQUENCY OF TAKING PACKED FOODS
Frequency of consume No. of respondents Percentage

Once a day 60 60
Twice a day 20 20
More than twice 6 6
Not regular 14 14
Total 100 100
Table reveals that 60% of the respondents eat packed foods it once a day, 20% twice a day,
6% more than twice and 14% eat it no regularly.
PREFERENCE OF BRAND
Brand name No. of respondents Percentage

Kurkure 22 22
Haldirams 38 38
Lays 25 25
Bingo 5 5
Parle 10 10
Total 100 100
Table indicates that out of 100 respondents 38 like Haldirams, 25 like Lays, 22 like Kurkure,
10 like Parle and 5 like Bingo.
Advertisement of Packed Foods
Advertisement of packed foods is required No. of respondents Percentage

Yes 80 80
No 20 20
Total 100 100
Table indicate that 80% of the respondents are of the view that the advertisement of the
packed food is required. While 20% shows that advertisement is not required.
EFFECTIVENESS OF ADVERTISING ON REACH AND CREATION OF AWARENESS
The first objective of the study was to examine the impact of advertisement on consumer
behavior on the other hand effectiveness of advertising on creation of awareness. The study sought to
establish whether the respondents were aware of various forms of advertisements adopted by various
companies. Majority of the respondents attested to being aware of various forms of advertisements.
This illustrates that the effectiveness of advertising on reach and creation of awareness was
284
determined by the level of knowledge about the existing platforms of advertisements adopted by
various companies.
The respondents were asked to indicate their attitude towards advertisements. The table
illustrate the study findings.
Frequency Percentage
Informative 20 20
Creates awareness 50 50
Entertaining 21 21
Irritating 6 6
Waste of time. 3 3
Total 100 100
As shown in above table, most of the respondents 50% indicated that advertising was creating
awareness. 20% indicated that advertising was informative. 21% indicated that advertising was
entertained. 6% indicated that advertising was irritating finally 3% indicates advertising was waste of
time. These findings mean that most of the respondents had a positive attitude towards advertising as
illustrated by their various perceptions about the use of advertising. This clearly shows a positive
attitude toward advertising and hence is a good indication for marketers. In order to further identify
the effectiveness of advertising on creation of awareness.
Time spend on various platforms of advertising
Media Mean Standard deviation

Tv 4.28 0.519
Newspaper 1.34 1.234
Social blogs 1.02 0.916
Internet 1.86 1.785
According to the findings in Table above on an average, a person spends more than 4 hours
on the television during his free time which is more than that of internet, Social blogs and print
medium. Hence, on an average the exposure of television to an individual is around 40% more than
that of other mediums i.e. the reach of medium television is much better than that of others.
The study sought to establish whether the respondents watched the TV/ or listened to Radio
commercials during commercial break. The findings are as shown in Table.
Yes 65 65
No 35 35
Total 100 100
285
According to the findings, the majority of the respondents attested to watching the TV
commercials during commercial break. This implies that for television commercials, around 65% of
consumers had a positive perception towards advertising on TV.
Change the channel during commercial breaks
Depend on AD 35 35
Often 11 11
Every time 13 13
Never 30 30
Sometimes 11 11
Total 100 100
Respondents were asked to indicate if they change channels during commercial and the
results were tabulated. Table shows that the degree of attractiveness of the advert and its relevance to
the respondents determined their attention to the advertisement. The viewers would see the
advertisement if the ad is attractive and appealing. Hence there is a probability of 0.78 of a consumer
viewing the particular advertisement for creating awareness on television making it an effective
mode of communication.
RELATIONSHIP BETWEEN ADVERTISING AND PURCHASE DECISION
The fourth objective of the study was to determine the relationship between advertising and
purchase decision. Respondents were asked to indicate the mode advertising that mostly influenced
their decision to purchase a product. The results were tabulated below
Television 62 62
Word of mouth 20 20
Magazines & newspaper 12 12
Internet advertisement 3 3
Blogs, forums, social networking sites 3 3
Total 100 100
Based on Table above, the highest number of students, 62% of the respondents were
influenced to buy a product based on television , being with the second 20% were influenced by
word of mouth through the information provided by friends. Magazines and newspaper holds the
third place with 12%, Internet advertisements and social networking sites were least in influencing
their decision at 3%.
Regression analysis
In determining the effectiveness of advertising on consumer behaviour, the study conducted
a multiple regression analysis to determine the nature of relationship between the variables.
286
The regression model specification were as follows

Y=α+β1X1 +ε.
Where;
Y= consumer behaviour
X1= advertising
ε= error term
β=coefficient
α= constant
Multiple regressions to determine the predictive power of advertising on consumer
behavior. The researcher conducted a multiple regression analysis so as to test relationship among
variable (independent) on the consumer behavior. The SPSS 17 was used to code, enter and compute
the measurements of the multiple regressions for the study. Coefficient of determination explains the
extent to which changes in the dependent variable can be explained by the change in the independent
variables or the percentage of variation in the dependent variable consumer behavior that is
explained by the independent variable taken as advertising.
Model R R square Adjusted R square Standard error

1 0.917 0.840 0.787 0.6271
The independent variable was explained only 84 % of the consumer behavior as represented
by the R2. It means that other factors not studied in this research contribute 16% of the consumer
behavior. Therefore, further research should be conducted to investigate the other factors that affect
consumer behavior.
ANOVA OF THE REGRESSION
Model Sum of squares d.f Mean square F sig

Regression 2.584 50 1.287 9.687 .000
Residual 9.504 200 2.528
1
Total 12.088 250
The significance value is 0.000 which is less than 0.05 thus the model is statistically
significance in predicting how advertising affects the consumer behavior. The F critical at 5% level
of significance was 3.23. Since F calculated is greater than the F critical (value = 9.687), this shows
that the overall model was significant.
Standardised Co-efficient
Model T sig
B Std.error Beta
Constant 1.168 0.2638 5.432 0.000
1 Advertising 0.826 0.1309 0.1309 7.756 0.000
Multiple regression analysis was conducted as to determine the relationship between

consumer behaviour and the one independent variable (advertising). As per the SPSS generated
table, regression equation
287
(Y=α+β1X1 +ε) becomes:

(Y= 1.168+ 0.826X1+ ε)
According to the regression equation established, taking all factors into account
(advertising) constant at zero, consumer behavior will be 1.168. The data findings analyzed also
shows that taking all other independent variables at zero, a unit increase in advertising will lead to a
0.826 increase in consumer behavior; This infers that advertising contribute most to the consumer
behaviour. At 5% level of significance and 95% level of confidence, So that advertising was a
significant, factor in predicting the consumer behaviour.
KARL PEARSON CO-EFFICIENT
Pearson correlation coefficient is a measure of the strength of a linear association between

two variables and is denoted by r. The Pearson correlation coefficient, r, can take a range of values
from +1 to -1. A value of 0 indicates that there is no association between the two variables. A value
greater than 0 indicates a positive association, that is, as the value of one variable increases so does
the value of the other variable. A value less than 0 indicates a negative association, that is, as the
value of one variable increases the value of the other variable decreases. The data presented before
on advertising was computed into single variables per factor by obtaining the averages of each
factor. Pearson’s correlations analysis was then conducted at 95% confidence interval and 5%
confidence level 2-tailed. The Table below indicates the correlation matrix between the advertising
and consumer behaviour.
Consumer behaviour advertising

Consumer behaviour (r)
1.000
(p) Sig. (2 tailed)
0.918
Advertising (r)
1.000
(p) (2 tailed)
0.019
There is a positive relationship between consumer behaviour and advertising of magnitude

0.918. The positive relationship indicates that there is a correlation between the consumer behavior
with the advertising. This notwithstanding, all the factors had a significant p-value (p<0.05) at 95%
confidence level. The significance values for relationship between consumer behaviour and
advertising was 0.019. This implies that advertising was a significant factor on consumer behaviour.
FINDINGS
After analysis of the findings, the study concludes that the effectiveness of advertising on
reach and creation of awareness was determined by the level of knowledge about the existing
platforms of advertisements adopted by various media. Advertising was effective in providing
higher reach and creation of awareness. The research established that TV advertising is more reliable
than other mode of advertising. Television is the most effective media which is said by 62 % of the
respondents. The significant relationship between advertising and consumer behaviour was found to
be positive relationship as the magnitude of 0.918. The study also concludes that advertising has
288
significant relationship with purchase decision of the consumers. This study shows that increase in
advertising will lead to a 0.826 increase in consumer behavior. The study further concludes that
television advertising contributes most to the consumer behavior and that TV advertising was a
significant factor in predicting the consumer behaviour. So television is the most effective media
which influences the consumer purchase decision. In addition, there is a positive relationship
between consumer behaviour and television advertising. This implies that companies should invest
more in television advertising to increase their market share.
CONCLUSION
Research of the study concluded that advertisement and consumer behaviour was positively
related. It was also found out that people form attitudes towards objects on the basis of their beliefs,
perception and knowledge about the products. According to value expressive function of attitudes
consumers preferred brand was haldirams and these findings explained that consumers purchased
that particular brand because it seemed satisfactory to them. The consumers are mostly like the
media advertisement. Through media consumer are attracted more so the companies are used the
media as a mode of promotion for the product. These findings mean that most of the respondents had
a positive attitude towards advertising by their various perceptions about the use of advertising. This
clearly shows a positive attitude toward advertising and hence is a good indication for marketers. In
order to further identify the effectiveness of advertising on creation of awareness. Advertisement
should not be too expensive, because the advertisement leads and increase the prize of the
product. Media should be selected according to the choice of customers. Marketers are suggested to
give more attention in making the advertisement to make it effective for the sales of packed foods.
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INTERNATIONAL

International Journal of Management JOURNAL

ISSN 0976-6502 (Print)

AN EMPIRICAL STUDY ON IMPACT OF

Keywords: Consumer Behavior, Advertisement, FMCG, Purchase Intention.

SCOPE AND NEED

OBJECTIVE OF THE STUDY

1. To study the impact of the advertisements on consumers behavior in educational institution

TOOLS AND ANALYSIS

Distribution of respondents by year of study

Year of students Frequency Percentage

DISTRIBUTION OF THE RESPONDENTS BY AGE BRACKET

Age bracket Frequency Percentage

GENDER DISTRIBUTION OF THE RESPONDENTS

Gender Frequency Percentage

FREQUENCY OF TAKING PACKED FOODS

Frequency of consume No. of respondents Percentage

Brand name No. of respondents Percentage

Advertisement of Packed Foods

Advertisement of packed foods is required No. of respondents Percentage

EFFECTIVENESS OF ADVERTISING ON REACH AND CREATION OF AWARENESS

Time spend on various platforms of advertising

Media Mean Standard deviation

Change the channel during commercial breaks

RELATIONSHIP BETWEEN ADVERTISING AND PURCHASE DECISION

The regression model specification were as follows

Model R R square Adjusted R square Standard error

ANOVA OF THE REGRESSION

Model Sum of squares d.f Mean square F sig

Multiple regression analysis was conducted as to determine the relationship between

(Y=α+β1X1 +ε) becomes:

KARL PEARSON CO-EFFICIENT

Pearson correlation coefficient is a measure of the strength of a linear association between

Consumer behaviour advertising

There is a positive relationship between consumer behaviour and advertising of magnitude

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