Impact of advertisement on consumer behaviour

Advertisement has been growing widely in recent years. Theoretically, with the
Feature of wide-accessibility, information richness, multimedia presentation, and flexible
Interaction, The present study measures consumers. Attitudes toward advertisements for
different purposes/functions (brand building and directional) and different media
(traditional and Internet-based). Literature suggests the following factors that contribute
to consumers. perceptions of ads: entertainment, irritation, in formativeness, and the
information through the mobiles in very important in the field of advertising to
convincing the customers.
A methodology for studying the factors that contributes to consumers perceptions of ads
is proposed and implications for Internet-based advertising and e-commerce
is discussed. Consumer attitude towards the advertising have long been a focus of
research (see Mittal, 1994; O”Donohoe, 1985, Pollay and Mittal, 1993; Zanot, 1981,1984
for excellent reviews of past studies)

Keywords: Online advertising, Internet-based advertising, consumer perception, attitude

towards advertising, directional advertising, interactivity

Introduction

Today, the advertisement and consumer both are very essential for the sale of goods and
services of any organization or company. It plays a vital role for growth of the
organization. In this study we discussed the different attitude and behaviors of the
consumer specifically for the advertisement. We focused on the different types of
1
advertisement that which one is better to convince or attract the consumer for the goods
or services. For that purpose we showed results of different advertisement like
advertisement through Internet, TV, billboards, hooding, E-Commerce, newspapers,
magazines, radio and mobile devices advertising is AN UBIQUITOUS part of modern
life, consumers are deluged daily by advertisements in a variety of media Indeed the
number of advertisements and the number of media and vehicles caring them has soared
in recent years (Krugman, Ried, Dunn, and Barban in 1994; O”Guinn, Allen and Semenik
1998)
In everyday live, devices and systems based on mobile technologies have become a
commonplace in most industrialized countries (Balasubramanian, Peterson and
Jarvenpaa, 2002).

The development of the Internet is resulting in great growth of online advertising. This is
making the competition for attention more intensive. The intrusive tactics advertisers
employ when competing for consumers. attention can be .annoying. to the audiences
(Sandage & Leckenby, 1980; Rettie, Robinson & Jenner, 2001; Zhang 2000).
Since the first Internet ads appeared in 1994, Internet advertising has experienced an
exponential growth with an annual growth rate reaching the peak of 350% in 1997 and
the total revenue reached $6 billion in 2000. Although the revenue from Internet
advertising dropped 6.5% in the third quarter of 2000, due to the financial trouble of
many dotcom companies, it is still believed to be a very promising media for the future.
Three factors, i.e., media characteristics, advertising appeals, and product type as
indicated by the level of involvement, are examined. Our purpose is to understand for the
consumer about the information about the products and services
(1) How effective the Internet advertising is when comparing with the traditional media.
(2) what are the factors that actually affect the advertising effectiveness?
The remainder of the paper is organized as follows. First, background of the research is
briefly reviewed

2
 :

Message content

Entertainment

Informativeness

Credibility

Irritation Attitude
Advertisin
towards
g value
advertising
Age
Attitude
towards
Gender Privacy
Educati
on
consumer
Frequency of
exposure

3
 Research Background

Advertisement plays a vital role to attract the consumer for different goods and services
of any company or organization. There are many different ways for advertisement to
build a strong impact on the consumers. In 21st century, the advertisement is compulsory
for any kind of business. Advertisement is the way to deliver the maximum information
about the products or services. The different ways that companies used includes bill
boards, TV channels, internet, hooding, prize schemes and other etc.
Advertising is a major ingredient in marketing. In general, it is a communication process
through which a message is conveyed from the producer to the consumer to affect the
consumer’s behavior. Many models have been proposed in the past. For instance, several
theories of communication and convincing were proposed by Hovland, Janis & Kelley
(1953),
Wang C. et al., described the two purposes of advertisement, brand
building and for directional purpose (Fernandez and Rosen, 2000; Lohse and Rosen,
2001). They also described the two Medias, traditional and internet based media.
Traditional media includes TV channels, newspapers, and magazines. Directional media
includes catalogs, yellow pages, movie listing, directories and industrial guides that all
are the goal oriented and provide a strong impact on the consumer that is beneficial for
setting high and organized goals (Fernandez 2000).
Some literatures use the term advertisement and media as same. Like yellow pages refer
to both directional media and directional advertising (Fernandez and Rosen, 2000; Lohse
and Rosen,2001).

4
In this literature we discuss the perceptions of consumers against the different types of
advertisement. An advertisement is the combination of different ads and messages for
consumer’s perceptions. We discuss the perceptions of both advertisers and consumers
for goods and services. Advertiser’s perceptions having symbol, icon and brand name.
That increases the brand recognition. Consumer’s perceptions that the goods or services
having the unique quality that differentiate from others. That thing creates the strong
impact on the consumer’s mind.
The advertisement on the internet is most effective for consumers. Advertisement on
internet provides the information, entertainment, irritation and contribution to the
consumers that is most effective one (Ducoffe, 1996). Brackett and Carr (2001) further
describe it and add two more elements that are credibility and demography. Credibility
defines the value of advertisement and demography shows the age, gender and college.

Theoretical Foundations

Advertisement is the basic source to attract the customer for goods and services provided
by any organization. Therefore marketers use many sources of advertisement like
advertisement through bill boards, newspapers, magazines, mobile devices, internet etc.
The behavior or attitude of the customer is influenced by different variables. These
variables are Entertainment, Informativeness, Irritation, Credibility, Demography, Age,
Gender, Interactivity, Education and Privacy.
In this topic, there are two major variables. Advertisement and
attitude. Advertisement is an independent variable and attitude is dependent variable. So
it means that the behavior or attitude of customers depends upon the advertisement. That
what kind of advertisement customer want or do not want to see.
Some marketers define the credibility in two types, corporate
credibility and endorser credibility. The corporate credibility is the reputation of any
company in the market that is influence to customer for purchase of goods or services.
Endorser credibility is the reaction of the customers against the advertisement and brands
of any product. That study assessed the impact of corporate and endorser credibility on
attitude toward the advertisement, attitude toward the brands, and purchase intentions.

5
The study define that the impact of endorser credibility is just on attitude toward
advertisement. The impact of corporate credibility is on attitude toward advertisement,
attitude toward brands and purchase intensions. The customer firstly sees the ads, after it
moves toward the brand of the product or services. After that he or she decide the
purchase or not. The study findings that corporate credibility and endorser credibility
create a strong impact on the customers.
Another variable is Entertainment. The entertainment is different
for different customers. Every customer has his or her own choice for advertisements.
Some ads are the source of entertainment for customers but not for all customers. So it
means that customer shows the different behavior for the same advertisement.
Some ads provide the complete information about the product or
services. But some ads can not express the right information in the market. So the
customer is always willing to extract the complete information about the product and
services. So the ads that provide complete and useful information to the customer create
the strong impact on the customer as compare to others. Then customer’s behavior is
better and positive as compare to others. Some ads irritate to the customers. For example
if the frequency of the ads is very high then the customer feel boring and become irritate
from that kind of ads. So the behavior of the customer is changed and do not like to
purchase that product or service.
One another variable is Demographics. Demographics are the
segmentation of population. The marketers segmentise population according to different
standards like habits, culture, taste, fashion etc. So the demographics strongly impact the
customer attitude/behavior toward the different types of advertisement. The Age is
another variable that affect the consumer attitude. Different age group people like the
different kind of ads. It is not necessary the each and every ad attract to every age person.
So attitude is influenced by the age factor of the customer. The product or service may or
may not different for male and female. Some products are especially for male and some
are especially for female. So if any product that is for male then any female do not show
any attitude because she has no concern and vice versa. Another point is like and
disliking that is differs from male to female. So they show the different behavior for the
same advertisement.

6
 Interactivity in any advertisement is beneficial for the
marketers. The most interaction of the customer with product keeps the customer up to
date and retained. So these customers response positively and show the favorable attitude
toward advertisement. The customer attitude is influenced by the education. The taste and
liking of highly educated, mediocre educated and less educated is always different from
each other. So the attitude is also different for advertisements. The privacy is the factor
that a customer is always wanted to maintain.
These variables explained above that impact on the attitude of
the customer/consumer. So the attitude is influenced by these variables and behavior may
different for different kind of advertisements.

Review of Literature

Advertisement plays the vital role for the sale of goods and services of any organization.
There are different ways of advertisement to strongly impact on the consumer. In 21st
century, it is compulsory for every kind of business. The companies can advertise their
products and services through TV, internet, newspapers, billboards, magazines, hooding
and prize schemes.
Wang C. et al., described the two purposes of advertisement, brand
building and for directional purpose (Fernandez and Rosen, 2000; Lohse and Rosen,
2001). They also described the two media of advertisement. Traditional media and
internet media (Fernandez 2000). In this study we discuss the perception of the consumer
against the different kind of advertisement. The advertiser’s perception is symbol, icon
and brand name that increase the brand recognition. The things that are unique from
others, also create the strong impact on the consumer.
. Advertisement on internet provides the information, entertainment,
irritation and contribution to the consumer that is most effective one (Ducoffe, 1996).
Brackett and Carr (2001) further describe it and add two more elements that are

7
credibility and demography. Credibility defines the value of advertisement and
demography shows the age, gender and college.
Liu F. et al., described the attitude and perceptions of consumers in china.
China has the largest population of 1.25 billion and GDP growth rate is 7-8% (NBS
China, 2004). The managers always questions for the brand development (Sawyer and
Howard, 1991). The people of less developed country like the goods of developed
country (Bailey and Pineres, 1997; Batra et al., 2004). The people of china like the
western brand rather than local brands (Sklair, 1994; Zhang, 1996).
Fishbein defined an attitude as “a learned predisposition of human
beings” [14]. Kotler stated that “an attitude is a person’s enduring favorable or
unfavorable evaluations, emotional feelings, and action tendencies toward some object or
idea” [21]. Mobile devices are very important for the ads, because 100 million messages
send in all over the world in a single year (A.T. Kearney). Mobile devices are information
based (Gallup, 17). Other medias are TV, magazines, broadcasting, newspapers, yellow
pages and direct mail. The consumer hears the ads most easily as watching (Elliot and
Speck).
Al-Khasoneh M. and Sweeney A. described that the expenditures of the
advertisement on internet in year 2007 were $15.9 billion approximately (Bearden et al.,
2004). They prefer the keyword advertising where different companies pays on internet.
They developed a model having six constructions. Dependent variable, independent
variable and moderating variables. Dependent variables include Click through rate, brand
awareness and behavioral intentions. Independent variable includes Keyword Search
Advertising. Moderating variable include Ad copy and Internet experience.
Haghirian et al., found in their research the behavior of the Australian’s
population on mobile devices advertisement. The numbers of users in the US reach to the
72% (FCC, 2004). And the 60% population of Western Europe having the unique mobile
phones from which almost 30% population are unique SMS users (Marcussen, 2004). In
recent markets, people like to purchase the goods from mobile devices (Pavlou and
Stewart, 2000). Kotler defines advertising as “any paid form of non-personal presentation
and promotion of ideas, goods or services by an identified sponsor” (p. 590). Marketers

8
always trying to build long term relation by sending the SMS (Houston and
Gassenheimer, 1987; p. 10).
The advertising value that how much consumer believe on the goods or
services of a company (Levi, 1990). Four characteristics of message are Entertainment,
Informativeness, Irritation and Credibility. Good ads can change the mood of consumer
(Hoffman and Novak, 1996). Entertainment is very essential for the advertisement that
can add the funny messages and able to make the consumer loyal (Katterbach, 2002).
Jong-Hyuok Jung and John D. Leckenby observed the mobile
advertisement in US, Asia pacific and Korea. They described that the demand of mobile
phones is rapidly going upward. The mobile advertisement has two types. First that the
advertisement through buses, trucks, train and on other public transports and second is the
advertisement through the messages send to the personal mobile phones, handheld
devices. The number of mobile phones subscriber in all over the world is 1.14 billion in
year 2004 and the landline phone subscriber are 1.10 billion in year 2004 (ITU, 2004).
The total number of mobile phone users in the United States in year 2005 was 207.9
million which was the 70% population of US (CTIA, 2006). The mobile phone users in
the US among the age of 25-44 years old are 71%, among the age of 45-54 years are 68%
and 18-24 year are 65% (Mintel, 2005). Approximately 350 billion SMS delivered in all
over the world in a single year (A.T. Kearny, 2005).
Marie J. Lachance and Frédéric Legault described that the buying of
goods and services based on consumer attitude, behavior and skills. Mostly the young
generation buy the goods and services from the advertisement.
Mariko Morimoto and Susan Chang described the Direct marketing channel for the
advertisement. They observed the two variables that are spam and direct mail in direct
marketing channel (Chang and Morimoto 2003).
Sophie A. et al., described the marketing through e-mails. The
advertisement through e-mail is most effective and increasing day by day factor for the
marketers. In this study they introduce two new variables, attitudinal commitment and
purchase intention. Today the marketers consider an e-mail advertisement as most
effective tool for selling their products.

9
 Claire Gauzente and Ashok Ranchhod observed internet is the important
source to provide the actual and effective information to the internet users by send mails.
Billions of the consumers use the internet advertisement to purchase any goods or
services. The internet advertisement is the ongoing and endless possibilities for the
marketers to advertise their products. The marketers use the different tracking software
for this purpose. The use of latest technology on the internet is the basic source of
advertisement and marketers always need to use the latest software for advertisement.

Objectives Of Study

The main objective of the study is that we should know the effects of the advertising on
the products selling. The advertisement and consumer both are very essential for the sale
of goods and services of any organization or company. It plays a vital role for growth of
the organization. In this study we discussed the different attitude and behaviors of the
consumer specifically for the advertisement.

10
 Significance of the Study:

This study based on the available literature, many study in the past has been conducted to
check the advertising effects on the company sales. It would help the social scientists to
get an easy understanding of what creativity in advertising is. Advertising practioners
would also get a clear concept about how creative process gets affected by social norms.
Next, in order to make the advertising agencies more successful, they need to have a clear
concept of what they represent, what they offer and who they serve. (Williams, T. 2005).
The study of social norms is important as much work has not been done over it, as
evidenced by the review of published literature (Eagan, 2005)

Methodology

Research Design

In this study the quantitative research method is used to estimate the effect of
Entertainment, Information, Irritation, Credibility, Demographics, Interaction, Privacy,
Qualification and value of ads on Behavior of consumer. The data will be collected by
filling up the questionnaire. The questionnaire will be filled by from the local market
customers, the users of the products. The data will be collected from more than 80
respondents. To check the validity and the results of the data will be collected from the
SPSS.

11
 Research Question:

What are the effects of advertising on consumer behavior?

Hypothesis

Hypothesis 1:
Ho: Advertisement does not affect the consumer attitude.
H1: Advertisement does affect the consumer attitude.

Hypothesis 2:
Ho: Entertainment does not affect the consumer attitude.
H1: Entertainment does affect the consumer attitude.
Hypotheses 3:
Ho: Information does not affect the consumer attitude.
H1: Information does affect the consumer attitude.
Hypothesis 4:
Ho: Irritation does not affect the consumer attitude.
H1: Irritation does affect the consumer attitude.
Hypotheses 5:
Ho: Credibility does not affect the consumer attitude.
H1: Credibility does affect the consumer attitude.

12
 Ethical Issues In the Study:
The study will continuously and deeply follow the rules and the codes of conduct.
The data provided by the respondent will be kept confidential, the respondents and
other individuals will also be kept confidential and will be used for research purpose
and they will be provided the survey for this.
The purpose of the study is to understand for the readers as well as the respondents
to avoid any kind of difficulty in the end.
In the ethical issues we clearly defined about the research which is conducted.
The participation in this study would be completely voluntary, which may end at
any time within the survey by the refusal of the participant. All information
provided to the respondents on which the interview or questionnaire is filled. The
privacy of the participants would be protected to the maximum extent allowable by
law.
The results would be shared with the participants in order to help them push the
boundaries of creativity in new ways.

Conclusion:
In this study we discuss about the impact of advertisement on consumer attitude.
Therefore we discussed the different kind of advertisement and different variables that
affect the consumer attitude for advertisement. So the consumer shows the positive
attitude for entertainment, privacy and value of ads but consumer shows the negative
attitude for information, irritation, credibility, demographics, interaction and
qualification. The findings that people mostly prefer and like the advertisement on TV
and internet.

13
 References:

Yin, J. F., 1999. International advertising strategies in China: a worldwide survey of

foreign advertisers. Journal of Advertising Research. 39(6), 25-35.

Sawyer, A. G., and Howard, D.J., 1991. Effects of omitting conclusions in advertisements
toinvolved and uninvolved audience. Journal of Marketing Research. 28(November),
467-474.

Beiley, W., and Pineres, S., 1997. Country of Origin attitude in Mexico: the Malinchismo
Effect. Journal of International Consumer Marketing. 9(3), 25-41.
Batra, R., Ramaswamy, V., Alden, Dana L., Steenkamp, J. E.M., and Ramachander,
R. (2000), Effects of brand local and nonlocal origin on consumer attitudes in developing
countries. Journal of Consumer Psychology. 9(2), 83-95.

Sklair, L., 1994. The culture ideology of consumerism in Urban China: some findings
from a survey in Shanghai”. In: Schultz, C.J. II, Belk, R.W., and Ger, G. (eds), Research
in Consumer Behavior, JAI, Greenwich, CT., vol.7, 259-292,
Zhang, Y., 1996. Chinese consumers evaluation of foreign product: the influence of
culture, product types and product presentation format. European Journal of Marketing.
30(12), 50-68.

Zhou, Nan, and Belk, Russell W., Fall 2004. Chinese consumer readings of global and
local advertising appeals. Journal of Advertising Research. 33(3), 63-77.
ANZMAC 2005 Conference: Marketing in International and Cross-Cultural
Environments 85

14
Fishbein, M., and Ajzen, I. Belief, Attitude, Intention and Behavior: An
Introduction to Theory and Research, Reading, MA: Addison-Wesley, 1975.

Kolter, P. Marketing Management. Englewood Cliffs, NJ: Prentice Hall, 2000.

Kearney, A.T. Mobinet Index, no. 5. Chicago: A.T. Kearney and Cambridge University,
2002.

Zanot, E.J. Public attitudes toward advertising. In H.H. Keith (ed.), Advertising in a New
Age: American Academy of Advertising Proceedings. Provo, UT: American Academy of
Advertising, 1981.

Gallup Organization. A Study of Public Attitudes Towards Advertising. Princeton:

Princeton University Press, 1959.

Elliot, M.T., and Speck, P.S. Consumer perception of advertising clutter and its impact
across various media. Journal of Advertising Research, 38, 1(1998), 29–41.

Bearden, W. O. et al, 2004. Marketing principles and perspectives. McGraw-Hill/ Irwin,

New York.

Bhat, S. et al, 2002. Measuring users’ web activity to evaluate and enhance advertising
effectiveness. Journal of Advertising, Vol. 31, No. 3, pp. 97-106.

Gold, K., 2005. Beware the click without the conversion. Retrieved March 10, 2006 from
http://www.payperclickuniverse.com/pay-per-click-search-engines-articles.php?
article_id=46

15
Keller, K. L., 1994. Integrating marketing communications to build brand equity.
Stanford University.

Dahlen, M., and Lange, F, 2005. Advertising weak and strong brands: who gains?
Psychology & Marketing, Vol. 22, pp. 473-488.

Mack, A. M., 2004. Text ads in top spot raise brand awareness. Retrieved September 29,
2005, http://www.adweek.com/aw/iq_interactive/article_display.jsp?
vnu_content_id=1000578020
Scott, D., 2003. Paying your way to the top (Search Engine Advertising). EContent, Vol.
26, pp. 32- 37.

Marshall, M., 2003. Google pushes to stay ahead of online advertising competitors.
Knight Ridder Tribune News. Washington, p.1.

Mack, A. M., 2004. Text ads in top spot raise brand awareness. Retrieved September 29,
2005, http://www.adweek.com/aw/iq_interactive/article_display.jsp?
vnu_content_id=1000578020
Ellam, A., and Ottaviani, M., 2004. Overture and Google: Internet Pay-Per-Click (PPC)
advertising auctions. London Business School.
Jansen, B. J., and Resnick, M., 2005. Examining searcher perception of and interaction
with sponsored results. Paper presented at the Workshop on Sponsored Search Auctions
at ACM conference on Electronic Commerce, 5-8 June, Vancouver, BC, Canada.

Bruner, G. C., and Kumar, A., 2000. Web commercials and advertising hierarchy of
effects. Journal of Advertising Research, Vol. 40, pp. 35-44.

Chingning Wang, Ping Zhang, Risook Choi, and Michael D.Eredita

16
“UNDERSTANDING CONSUMERS ATTITUDE TOWARD ADVERTISING”
Syracuse University
cwang20@mailbox.syr.edu pzhang@syr.edu
rschoi@hanmail.net maderedi@syr.edu
Fang Liu, Jamie Murphy, and Jianyao Li, The University of Western Australia
“Consumer Ethnocentrism And Chinese Attitudes Towards Store Signs In Foreign And
Local Brand Names”
Melody M. Tsang, Shu-Chun Ho, and Ting-Peng Liang
“Consumer Attitudes Toward Mobile Advertising”

Mohammad Al-khasoneh Griffith University, Australia Arthur Sweeney Griffith

University, Australia
See Mittal, 1994; O”Donohoe, 1985, Pollay and Mittal, 1993; Zanot, 1981,1984 for
excellent reviews of past studies
Krugman, Ried, Dunn, and Barban in 1994; O”Guinn, Allen and Semenik 1998
Balasubramanian, Peterson and Jarvenpaa, 2002
Sandage & Leckenby, 1980; Rettie, Robinson & Jenner, 2001; Zhang 2000
Williams, T. (2005) Take a stand for your brand.

“THE IMPACT OF KEYWORD SEARCH ADVERTISING ON CONSUMERS’

BRAND AWARENESS, CLICK THROUGH AND SUBSEQUENT
BEHAVIOURAL INTENTIONS”

17