A

DISSERTATION REPORT

ON

THE INFLUENCE OF ADVERTISING ON CONSUMER BUYING

BEHAVIOR: CASE STUDY ON FOREVER LIVING COSMETIC
PRODUCTS

Submitted in partial fulfilment of the requirements of

Bachelor of Business Administration (BBA)

Amity University, Gurgaon (Manesar)

Submitted By:- SUBMITTED TO:-

Rajneesh Yadav Dr. Shraddha Awasthi

BBA( Gen)- Semester VI Amity Business School

Enrollment No.- A50006416040

Amity Business School

Amity University Haryana

Gurgaon (Manesar)

Session (2018-2019)

1
 DECLARATION

I, Rajneesh Yadav, Roll No. A50006416040, BBA (6th semester) of Amity Business School,
Amity University Gurgaon, hereby declare that the Project Report entitled “THE INFLUENCE
OF ADVERTISING ON CONSUMER BEHAVIOR: CASE STUDY OF FOREVER
LIVING COSMETIC PRODUCTS” is my original work and the same has not been submitted
to any other institute for the reward of any other degree.

The feasible suggestions have been duly incorporated in consultation with the supervisor.

Countersigned

Signature of the Supervisor Signature of Candidate

Forwarded by:

Director of the Institute

2
 PREFACE
This study aims to establish the influence of advertising on consumer buying behavior by
focusing on Forever Living cosmetics products. Specifically, the study aims to identify media of
advertising used to advertise Forever Living Products, determine ways in which advertisement
influence purchasing behavior and establish how different advertisements influence consumer’s
behavior.

The study was conducted in Delhi- NCR region. Both, primary and secondary data collection
methods were used to collect data. Primary data were collected with the use of questionnaires
and interview guides, as well as personal observation. Secondary data collection involved the
perusal of various documents. The study comprised a sample of 100 respondents.

From the findings of the study, the researcher concludes that advertising plays a very significant
role in influencing consumers buying behavior by attracting their attention, arousing their
interest, creating desire to purchase the products.

Advertisements used by Forever Living to promote cosmetics products influences consumer

buying behavior by providing them with information about product benefits, price, quality,
ingredients (materials of which the product is made of), quality, product quantity, product
testimonial, product packaging, product name and product color. The advertisement creates
awareness of the products and attracts more buyers.

The researcher recommends that the company should create advertisements in Hindi language,
create advertisements that reflect the local situation and ensure that advertisements should
convey direct information about the product rather than to showing glamour and exaggeration.
Also, advertisements should offer more information about the benefits of the product.

3
 ACKNOWLEDGEMENT
It is my privilege to acknowledge the contribution of all the people who helped in making this
Dissertation Report come to fruition. The time and effort taken by them to provide their
cooperation and guidance for the progress of this Report is duly appreciated.

I would like to thank the academic institute of Amity Business School, Amity University
Haryana for providing me the opportunity and resources to conduct my own research and
consequently work on this Dissertation Report.

It is my privilege to be able to thank Dr. Padmakali Banerjee (Director-ABS) for her

contribution and support.

I take the time to express my gratitude towards Prof. Dr. Vikas Madhukar (Deputy Director-
ABS and Director-Admissions).

I also grab this opportunity to acknowledge my faculty guide, Dr. Shraddha Awasthi (Faculty-
Amity Business School, Gurgaon), for her suggestions, guidance and for showing me the way
towards the successful completion of this project. Subsequently, I extend a heartfelt thanks to the
other faculty members of Amity Business School for their support and provision of important
information and insights regarding this Report.

I would also like to take out the time to duly acknowledge the immense contribution of the
authors of journals, articles, textbooks, research papers and other sources from which I derived
the required information to establish a foundation for my study.

I owe my wholehearted thanks and appreciation to the respondents for their time and effort
during the course of my survey. Without their received cooperation and quick responses, this
project would not have been a success.

I also express gratefulness to my family and friends for their interminable support.

Any omission in this brief acknowledgement does not mean lack of gratitude.

RAJNEESH YADAV

4
 TABLE OF CONTENTS
DECLARATION---------------------------------------------------------------------2

PREFACE-----------------------------------------------------------------------------3

ACKNOWLEDGEMENT---------------------------------------------------------4

CHAPTER 1- INTRODUCTION------------------------------------------------8-14

1.1 Overview of Advertising Industry------------------------------------------9-12

1.2 Background of the study-----------------------------------------------------12-14

1.3 Statement of the Problem----------------------------------------------------14

CHAPTER 2- OBJECTIVES & METHODOLOGY-----------------------15-22

2.1 Significance of the study----------------------------------------------------16

2.2 Objectives of the study------------------------------------------------------17

2.3 Research Methodology------------------------------------------------------17-22

2.4 Limitations of the study-----------------------------------------------------22

CHAPTER 3- CONCEPTUAL FRAMEWORK---------------------------23-34

3.1 Review of Literature--------------------------------------------------------24-33

3.2 Research Gap----------------------------------------------------------------33

3.3 Conceptual Framework----------------------------------------------------34

CHAPTER 4- DATA ANALYSIS & FINDINGS------------------------35-49

4.1 Concept of Data Analysis------------------------------------------------36-37

4.2 Analysis of the Research Data-----------------------------------------38-48

4.3 Findings------------------------------------------------------------------48-49

CHAPTER 5- CONCLUSIONS& RECOMMENDATIONS---------50-52

5.1 Conclusions----------------------------------------------------------------51

5.2 Recommendations---------------------------------------------------------52

BIBLIOGRAPHY--------------------------------------------------------------53-56

ANNEXURE---------------------------------------------------------------------57-59

5
 LIST OF TABLES

CHAPTER 2-OBJECTIVES & METHODOLOGY

Table 2.1: Sample Respondents: Sample size n=50----------------------------------------------22

CHAPTER 4- DATA ANALYSIS & FINDINGS

Table 4.1: Awareness about Company’s advertising Strategies-------------------------------38

Table 4.2: Experience of Respondents in Cosmetics Industry---------------------------------39

Table 4.3: Advertising Attracts Attention on Forever Living Cosmetics Products--------40

Table 4.4: Advertising Creates Desire for Forever Living Cosmetics Products------------41

Table 4.5: Product Quality Influences Consumer Buying Behavior-------------------------42

Table 4.6: Product Ingredients Influence Consumer Buying Behavior---------------------43

Table 4.7: Product Price Influences Consumer Buying Behavior----------------------------44

Table 4.8: Models used in Advertisement Influences Consumer Buying Behavior-------45

Table 4.9: Brand Name Influences Consumer Buying Behavior-----------------------------46

Table 4.10: Product Color Influence Consumer Buying Behavior---------------------------47

6
 LIST OF FIGURES

CHAPTER 3- CONCEPTUAL FRAMEWORK

Fig 3.1 Elements in Advertising Process Model-----------------------------------------26

Fig 3.2 Advertisings Models---------------------------------------------------------------28

Fig 3.3 Stages of the Buying Process----------------------------------------------------29

Fig 3.4 Conceptual Framework Advertising and Consumer’s Buying Behavior—34

CHAPTER 4- DATA ANALYSIS & FINDINGS

Fig 4.1: Awareness about Company’s advertising Strategies-------------------------------38

Fig 4.2: Experience of Respondents in Cosmetics Industry---------------------------------39

Fig 4.3: Advertising Attracts Attention on Forever Living Cosmetics Products--------40

Fig 4.4: Advertising Creates Desire for Forever Living Cosmetics Products------------41

Fig 4.5: Product Quality Influences Consumer Buying Behavior-------------------------42

Fig 4.6: Product Ingredients Influence Consumer Buying Behavior---------------------43

Fig 4.7: Product Price Influences Consumer Buying Behavior----------------------------44

Fig 4.8: Models used in Advertisement Influences Consumer Buying Behavior-------45

Fig 4.9: Brand Name Influences Consumer Buying Behavior-----------------------------46

Fig 4.10: Product Color Influence Consumer Buying Behavior---------------------------47

7
 CHAPTER-1
INTRODUCTION

8
1.1 OVERVIEW OF ADVERTISING INDUSTRY
Consumer is a person who buys and uses products. Therefore, consumers keep the production
cycle moving as well as play an important role in the economic system of any nation, as a result,
any nation will face crisis if consumers don’t have the effective demand for goods produced.
Consumers demand different commodities based on their taste and preference for them.
Consciousness of good influences consumers purchase of that good. Other factors that influence
one‘s taste and preference for a good are psychological and environmental. Taste and preference
for a good change overtime. Thus, advertisements play a role in influencing taste and preference
of consumers’ choice. (Sharma, 2009).

Advertising is all about mass publicity of products. Advertising involves creating awareness of
product’s uses and their benefits to consumers. By doing this, it makes a product to be available
to those who want it and this satisfies the needs of the advertiser; increasing sales. According to
Cohen, advertising is a business activity that employs creative techniques to design persuasive
communication in mass media that promote ideas, goods, and services in a manner consistent
with the achievement of the advertiser‘s objective, the delivery of consumer satisfaction and the
development of social and economic welfare. (Cohen, 1988)

From Cohen’s definition, it can be found that advertising satisfies three objectives; to increase
sales of the firms, to guarantee consumers a great deal of service and finally to ensure the social
and economic welfare of society. Advertising can be done through various media such as; radio
and television, billboards, magazines and newspapers and websites. (Cohen, 1988)

Other factors that influence one‘s taste and preference for a good are psychological and
environmental. Taste and preference for a good change overtime. Thus, advertisements play a
role in influencing taste and preference of consumers’ choice. Consumers are known to be
rational with regard to their purchases, wanting to maximize their satisfaction when it comes to
consumer goods (Sharma, 2009).

The term consumer behavior is defined as the behavior that consumer display in searching for
purchasing, using, evaluating and disposing of product and services that they expect will satisfy
their needs. Consumer behavior focuses on how individuals make decisions to spend available
resources (time, money, effort) on consumption related items (Solomon, 1994).

9
Consumer behavior includes what they buy, why they buy it, when they buy it, where they buy
it, how often they buy it, how often they use it, how to evaluate it after the purchase and the
impact of such evaluation fount u re, and how they dispose of it. In other words, consumer
behavior is behavior of individuals in regards to acquiring, using, and disposing of products,
services, ideas or experiences (Loudon, 1988).

Advertising has huge stimulating influence on purchasing behavior of the consumers. Mostly,
advertising are more effective on products that have intrinsic qualities. Qualities are not known
at the time of purchase and it takes one to discover the qualities upon using the product. And,
when there is a substantial chance of differentiating a product, it best suits to advertise on that
product (Schiffman, 1993).

A consumer will therefore not purchase a commodity whose price is above the additional
satisfaction that he derives from the good. How much of a good demanded, depends on the
satisfaction the consumer gains from spending extra money on the good. Rational consumers will
spend on a good till their gains equal the cost they pay for the product (Schiffman, 1993).

When there is a strong emotional purchasing motive such as to product health or enhance social
position, it pays to advertise on such a product. These conditions make the demand for the
product more inelastic. The more emotions consumer attach to a product, they more they tend to
be insensitive to its price. This is of importance to firm’s product as they can earn high sales in
pricing their products (Borden, 1942).

In the absence of advertising, consumers may not be aware of the product and its potential to
satisfy their needs and desires. According to ( Kotler and Keller ,2006) advertisings mix consists
of eight modes of advertising which are; personal selling, direct marketing, advertising, sales
promotion and exhibitions, public relations and publicity, events and experience, interactive
marketing, and word of mouth.

One form of advertising is personal selling. The Relevance of personal selling to this study lies
on the role of face-to-face interactions in marketing of tourism products. This involves face-to-
face interactions with prospective buyers for the purpose of selling a product or service. These

10
days, personal selling is considered to be the most effective tool as it involves personal
interaction, hence feedback is received immediately (Kotler and Keller,2006).

However, personal selling suffers from a few drawbacks i.e. it is the most expensive tool of
promotion. Secondly, it requires too much dependence on sales force. If the organization is using
a pull strategy to sell the product a sales force will be required to make sure that retail outlets are
looked after well, that they have enough stock, are trained well so they can push the product onto
the consumer (Kotler and Keller, 2006).

Another form of advertising is direct advertising. According to (Kotler and Keller, 2006) direct
advertising is advertising which communicates directly with customers and prospects. The merits
of direct marketing is that it reaches a larger number of people, the message can be repeated, its
cost is not high, and with the development of art and graphics, statements can be transformed
into forceful messages.

Advertising can be categorized into above the line advertising and below the line advertising.
According to (Kotler and Keller,2006) there is above the line advertising is advertising placed in
TV, radio, newspapers and other advertising channels in which the advertiser pays an advertising
agency to place the ad. Below the line advertising is based on advertising via direct mail,
sponsorship, merchandising, public relations, trade show and personal selling.

A variety of short-term incentives to encourage trial or purchase of a product. (Kotler and Keller,
2009). The aim of sales promotion is to increase consumer demand, stimulate market demand or
improve product availability. The tactics used for this include; coupons, point of sales, packaging
promotion, web coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-
liquidating premiums, trade shows and trade-ins.

(Kotler and Keller, 2009) explained it as variety of programs designed to promote or protect a
company’s image or its individual product. For example, British Airways has recently invested
in changing its identity by redesigning its aircraft livery. The change from the use of a corporate
color scheme and national image on the aircraft to a far more international image reflects the
company’s global ambitions (Pender, 2009).

11
Company sponsored activities and programs designed to create daily or special brand related
interactions (Kotler and Keller, 2009). Sponsorship is about providing money to an event, in turn
the product or company is acknowledged for doing so. Sponsorship helps the company improve
its image and public relations within the market and usually the company attempts to sponsor
events that mirrors the image they are trying to aim for.

Therefore the goal of this research was to find if consumer buying behavior is a result of
advertisements made on the cosmetics products. As stated previously, advertising affect products
and are believed to have an intrinsic quality that is not known at the time of purchase .One of
such product are cosmetics. It is for this reason forever living products were chosen as a case
study.

1.2 Background of the Study

Advertising had been a subject discussed over centuries ago, but prior to the 20th Century, this
subject was not as important as it seems now. According to (Roberts, J. 1987) The reason been
that, in the 19th century, economist were busy trying to develop the theory of perfect competitive
markets, this theory assumed that, there was perfect information in the market and that,
consumers had fixed preference for their products which were homogenous in nature.

It was then thought of as a waste of resource and an increase in cost of production for one to
advertise on products because consumers were not in any way going to respond to that. The
advancement in transportation and technology, made producers rethink their decision to improve
their capacity and thus, ensure publicity of their products (Roberts, J. 1987)

After these happenings, advertising then became an important area for economist to research
into. An early reflection was given by (Alfred Marshall 1890, 1919). In his works, “Principles of
Economics” and “Industry and Trade”. He marks out two roles played by advertising. To him,
advertising might be useful in providing information to consumers which will help them satisfy
their wants.

12
(Chamberlin, 1933) in his work “The Theory of Monopolistic Competition” came up with new
ways of looking at advertising. He modeled the expenditure of a firm as a “selling cost” that
expands a firm’s demand for a differentiated product. In his work, he describes a market
structure in which there are many firms producing and selling similar but not identical products.

In this market, (Chamberlin, 1933) believes that advertising may provide consumers with
information about their wants but also adds that, it can be persuasive and alter one’s demand for
another. Advertising when informative makes consumers responsive to price changes and thus
increases the demand elasticity for the product but a persuasive advert will create brand loyalty
making the demand for a good inelastic (Bagwell, 2011).

(Chamberlin, 1933) then concluded that, the effects of advertising cannot be determined by
theory alone, thus where a firm’s demand curve is tangential to its U-shaped average cost of
production and selling, but by also considering the extent to which advertising is whether
informative or persuasive and also whether scale economies exist (Bagwell, 2011).

After this insight by (Chamberlin, 1933), there came into existence three views of advertising;
persuasive, informative and complementary. The persuasive view developed by Robinson and
later advanced by (Braithwaite, 1928), and empirically supported by (Bain, 1956) and (Comanor
and Wilson 1974) hold that, advertising affects one’s demand and it is capable of ensuring brand
loyalty.

This view adds that, advertising makes demand for a product inelastic and thus ensures increase
in the price of the product and this effect might lessen as a result of scale economies. The view
also adds that, consumers are unwilling to try new products especially those of unknown quality
and this may deter entry of new producers. These scholars agree that, this view of advertising
will only work in scale economies.

The informative view of advertising, propagated by (Ozga, 1960) holds that, advertising serve to
inform consumers about a product. They add that, advertising increases the demand elasticity for
a product and this happens because, it is believe by these scholars that, as information of a
product is given, it is assumed the product is of high quality and this can even increase the
demand for products.

13
There is the complementary view of advertising which is developed by (Stigler and Becker,
1977), this view believes that, advertising influences consumers by attaching a “complementary
influence in the consumer’s utility function” (Bagwell, 2001). These views make us understand
the different phases through which advertising has gone through.

1.3 Statement of the Problem

Advertising has been a subject for debate either on one pretext or another for decades at the
beginning of the 19th Century. People showed little interest but it later became a fertile topic for
research at the turn of the 19th Century (Sharma, 2009).The reason people lost interest was the
fact that the role of advertisements was falling apart due to the fact that most increase in product
and sales, especially; cosmetics products had been attributed to other factors like taste, long term
use of products and users unwillingness to switch products (Sundarsan, 2007).

The falling role raised numerous questions which became the problem of this study. The
researcher therefore intended to get answers as to how and why cosmetics companies do
advertise their products while they know the increase in product and sales is attributed to other
factors and no longer advertisements.

Cosmetics products were considered because they satisfy the conditions of commodities on
which they are effective to advertise. There are a lot of cosmetics products which are
differentiated but serve same purpose. Therefore, this study aimed to find out the role of
advertising in the consumer buying behavior of cosmetics products specifically Forever Living
cosmetic products with emphasis to its users.

14
 CHAPTER-2
OBJECTIVES & METHODOLOGY

15
2.1 Significance of the study
Research inculcates scientific and inductive thinking and it promotes the development of logical
habits of thinking and organization.

Research is an original contribution to the existing stock of knowledge, making for its
advancement. It is the pursuit of truth with the help of studies, observation, comparisons and
experiments.

Research has its special significance in solving various operational and planning problems of
business and industry.

A business faces many types of marketing problems regarding its product, price, place and
promotion. It also faces problems about product design, packaging, branding, marketing
channels, advertising, customer satisfaction levels etc. These aspects make it imperative for the
marketers to conduct marketing research.

The findings of the study benefitted cosmetics companies, specifically, Forever Living Products
by helping them to understand the influence of advertising on consumer buying behavior, various
media of advertisements that can be used to advertise cosmetics products, ways in which
advertisements influence consumer buying behavior and how advertisements influence consumer
buying behavior.

The findings of this study added to the existing body of knowledge on the influence of
advertising on consumer buying behavior by providing future researchers with a source of
empirical literature on the same or similar topics.

16
2.2 Objectives of the Study
The aim of this study was to establish the influence of advertising on consumer buying behavior
by focusing on Forever Living cosmetics products.

The study was guided by the following objectives:-

1. To identify media of advertising used to advertise Forever Living Products.

2. To determine ways in which advertisement influence purchasing behavior.

3. To establish how different advertisements influence consumers behavior.

2.3 Research Methodology

The purpose of methodology is to describe the research procedure. This includes overall research
design, the sampling procedure, the data collection method, the field method and analysis
procedure.

Research methodology is a way to systematically solve the research problem. In it, the various
steps that are generally adopted by a researcher in studying his research problem along with the
logic behind them are studied.

2.3.1 Meaning of Research

Research is a careful investigation or inquiry especially through search for new facts in any
branch of knowledge.

According to P.M. Cook, “Research is an honest, exhaustive, intelligent searching for facts and
their meanings (or) implications with reference to given problem. It is the process of arriving at
dependable solutions to problem through the planned and systematic collection, analysis and
interpretation of data. The best search is that which is reliable, verifiable and exhaustive. So that
it provides information in which we have confidence”.

Marketing research means the systematic gathering, recording, analyzing of data about problems
relating to the marketing of goods and services. Marketing research has proved an essential tool

17
to meet the needs of marketing management. But gathering of observation is must be systematic.
The systematic conduct of research requires:

• Orderliness, in which the measurements are accurate.

• Impartiality in analysis and interpretation.

2.3.2 Research Design

The research design refers to the overall strategy chosen to integrate the different components of
the study in a coherent and logical way, thereby ensuring that the research problem is effectively
addressed; it constitutes the blueprint for the collection, measurement, and analysis of data.
Research designs differ in these three cases:

• Exploratory Research- Exploratory research focuses on the discovery of new ideas and is
generally based on secondary data.

• Descriptive Research - Descriptive research design is typically concerned with describing

problem and its solution. It is more specific and purposive study. Unlike exploratory research, it
is not flexible. Descriptive research requires clear specification of who, why, what, when, where,
and how of the research. Descriptive design is directed to answer these problems.

• Experimental Research- Also called Hypothesis-testing research, Experimental designs are

concerned with examination of the effect of an independent variable on dependent variable,
where the independent variable is manipulated through treatment or intervention(s).

The Research Designs used in this study are:

1. Descriptive Research Design, since focus of the study is on:

- Formulating set objectives.

- Describing the characteristics of certain groups/ populations.

- Selecting a sample for collection of precise and accurate information in an unbiased way.

18
- Carefully processing and analysing the data

- Reporting the findings clearly

2. Exploratory Research Design, since it helps the study by:

- Clarifying concepts through secondary data

- Increasing researcher’s familiarity with problem

- Using its findings as complementary to the descriptive design of the study

2.3.3 Data Collection

Data collection is the process of gathering and measuring information on variables of interest, in
an established systematic fashion that enables one to answer stated research questions and
evaluate outcomes.

While deciding about the method of data collection to be used for the study, the researcher
should keep in mind two types of data viz., primary and secondary.

1) Primary Data:

o The primary data are those which are collected afresh and for the first time, and thus happen to
be original in character.

o The primary source of data in this research study was collected directly from the respondents
through questionnaires, interviews and observation.

2) Secondary Data:

o The secondary data are those which have already been collected by someone else and which
have already been passed through the statistical process. Secondary data may either be published
data or unpublished data.

o Sources of secondary data collection in this study include –

19
i) Books and Magazines

ii) Reports and publications associated with the industry and business

iii) Internet

2.3.4 Data Collection Methods

In this study, both, primary and secondary data collection methods were used. Primary data
collection methods that were used are; questionnaire, interview and observation.

1) Questionnaire

Questionnaire being a piece of information elicited from respondents, therefore they are forms
containing questions to be filled in by respondents from which information can be collected from
the answers given, as for this research the questionnaire contained structured and unstructured
questions with the main aim of eliciting information on the impacts of advertising on consumers
buying behavior.

The questionnaires were administered to respondents with assurance of confidentiality,

anonymity and convenience. The method was used because it enabled the researcher to collect a
large amount of information, which can be collected from a large number of people in a short
period of time and in a relatively cost effective way and that its results can be easily quantified
and analyzed more scientifically.

2) Interview

This method is that which information is to be obtained through inquiry and recorded by a
researcher. As for this research, structured interviews were used to collect information from
employees of Forever Living Products Company such as; Sales Managers. A comprehensive
interview guide was prepared and administered to respondents to enable the researcher to
establish the influence of advertising on consumer buying behavior.

20
3) Observation

Respondents were observed as they purchase basing on factors they consider in relation to
advertisements they come across with and information from what was observed was recorded by
a researcher. The reason why this method was used is because it is best method of studying
human behavior and it is accurate and reliable and that in its overall ability it helps to make an
in-depth analysis of the problem.

2.3.5 Sampling
Sampling may be defined as the selection of some part of an aggregate or totality on the basis of
which a judgment or inference about the aggregate or totality is made. In other words, it is the
process of obtaining information about an entire population by examining only a part of it.

Universe of the Study- Delhi-NCR region.

Sample Size-50 units.

Sampling Method- Convenience Sampling

- A convenience sample is one of the main types of non-probability sampling methods. A

convenience sample is made up of people who are easy to reach. A chunk is selected neither by
probability nor by personal judgment. That is, a sample population selected because it is readily
available convenient, as researchers are drawing on relationships or networks to which they have
easy access. A convenient sample can only rarely be representative of the population

21
Table 2.1: Sample Respondents: Sample size n=50
Category Number of respondents

Consumers 25

Cashiers 10

Marketing Managers 10

Sales officers 5

TOTAL 50

2.4 Limitations of The Study

• The sample size was limited due to time constraint, lack of proper resources and the nature of
the research. Hence, the study may not reflect the public opinion at large or reveal the broader
picture.

• The study was confined within the region of Delhi-NCR only.

• The authenticity of the answers by the respondents cannot be verified. Findings of the research
are based on the assumption that the respondents have given correct information.

• The answers by the respondents may be inaccurate due to lapse in memory or skewed judgment
about their past behavior and their personal bias.

• Cost constraints limited the scope of the study.

• The information gathered and analyzed is of relevance according to the present market
conditions and its credibility may change in the future.

22
 CHAPTER-3
CONCEPTUAL FRAMEWORK

23
3.1 Review of Literature
In conducting this study, the researcher was guided by the following theories;

The essence of learning theories lies in the fact that people learn from experience and the results
of experience will modify their actions on future occasions. The importance of brand loyalty and
repeat purchase makes learning theory more relevant in the field of marketing. Among the
learning theories come stimulus response theories and cognitive theories.

Contributors of stimulus response theories include Purlon, Skinner Thorindike and Kotlew.
According to them learning occurs as a person responds to some stimulus and is rewarded with
need satisfaction for a correct response. They proved that most frequent and recent stimuli are
remembered and responded. This approach is the basis of reported advertisements.

The cognitive theory explains certain post buying behavior According to it stimulation and want
are conditioned by a consumer’s knowledge, his perception, beliefs and attitudes. The theory
further states that even after a well thought out purchase the consumers undergo some sort of
discomfort, fear or dissonance.

This post decision anxiety is caused by ‘nice’ (cognitive dissonance) arising from doubts on the
decisions taken. The consumers compare on the merits of the products bought with substitutes or
start analyzing drawbacks of the product. Such customers require some reassurances from the
seller stressing that the decision taken is wise one. Though this theory was developed to explain
a ‘post decision’ phenomenon.

Consumers attempt to stabilize their psychological field by providing meaning to the surrounding
world. Consumers strive to reduce conflict between themselves and their environments.

24
Using the socio- cultural theory, Veblenia asserted that a man is primarily a social animal and his
wants and behavior are largely influenced by the group of which he is a member. He argued that
people have a tendency to fit in a society in spite of their personal likes and dislikes.

Veblem’s Model explains culture in terms of social classes’ reference groups whereby families
are the different factor groups that influence buyer behaviour. All the above theories give
guidelines to the marketing managers on how a consumer behave in a particular situation and
what are the factors which influence their decision making process.

The study was guided by the Purchase Intention Theory. According to the purchase intention
model theory, culture affects decisions of consumer on whether or not and what products to
purchase. This means, consumers in a particular setting are likely to arrive at similar purchasing
decisions which are different from consumers in other settings.

The Theory proposes a brand image–purchase decision relationship linking brand image of a
product with the purchase decision or intention. Attitude of a consumer toward a particular brand
is more likely to influence his or her decision or intention to purchase the product. In general,
people are likely to purchase a product whose brand influences them the most.

Fishbein Attitude Theory proposes that attitude toward an object (such as a product) is based on
the summed set of beliefs about the object’s attributes weighted by the evaluation of attributes. A
products attributes, characteristics and the way it is perceived by consumers is also known as the
brand image or personality of the product.

Maslow’s Theory of Needs explains why people are driven by a particular need at a particular
time. According to the theory, human needs are arranged in hierarchy, from the most pressing to
the least pressing, in order of importance. When a person succeeds in satisfying an important
need, he/she will try to satisfy the next important need. This theory explains how purchase
decision is influenced by individual needs (Maslow, 1954).

25
The concept of advertising can be explained in five steps sender, encoding, message, decoding
and receiver. This process explains the different stages through which
Message is formed and traveled to the audience. Advertising message is not just a message; it is
a bundle of representation of the product and the company. The advertising process starts from
sender and end up to receiver (Schramn, 1995).

Figure 3.1: Elements in Advertising Process Model

Sender Encoding Message Decoding Receiver

Media
Sender
(Czinkota and Ronkainen ,2008) explains as the individual or firm who feels the need to deliver
the message and selects the combination of symbols, pictures, music or words as a message to be
transmitted. All the responsibility of the whole process is on the shoulders of the sender. It is up
to the sender how he designs the message and which information he is using for audience.

Encoding
(Czinkota and Ronkainen, 2008) depicts that encoding is the design of the symbolic
arrangements which should be understandable by the receiver. It is in fact a crucial stage to
develop the basis of the message. Encoding is the functional stage where sender of advertising
message sees the functionality of the codes towards the receiver of that particular advertising
message.

26
Message
The message is actually the complete form of encoding. (Bovee and Thill, 2002) define the
message as the idea which is capable of being transmitted. When the complete message is
encoded, it is now ready to transmit to the audience. From here the message is diffused to the
audience through the prescribed media or combination of media by the source.
Decoding
Decoding is the understanding of the delivered message. It is the process to translate the message
into an idea. It is also the crucial stage of
Advertising that indicates how the receiver of the message perceives the delivered message. If it
was designed rightly according to the knowledge and understanding level of the receiver then the
feedback can be positive.

explains the advertising process in seven sequential stages in which, individual or organization is
defined as source, symbolic style as encoding, transmission as signal, comprehension of
symbolic style as decoding, individual or organization who receive the message as receiver, their
reaction back to source as feedback and the distortion in the process as noise.
The sender should know the audience very well before designing the message. The audience can
be varied preferences or homogeneous which should carefully be studied. The suitability of all of
the elements is important. The intensity of the noise can be increased if the message will not be
suitable which can lead to the failure of advertising.

The figure above describes the three stages through which a consumer passes through before
making the decision to purchase a product namely cognitive, affective, and behavioral stage, in
that order. The stages are described by using four models of advertising namely; AIDA model,
Hierarchy of effects model, innovation-adoption model and Hierarchy of needs model. This
study used the AIDA Model.

According to the AIDA (Attention-Interest-Desire-Action) Model developed by (Schramn,

1995), the decision by a consumer to purchase a particular product begins when the product
catches his or her attention. This is followed by developing an interest for that product which is

27
followed by the desire for that product to fulfill his or her needs. Thereafter, the consumer
decided to take action, which is to purchase the product.
Advertising is a potent vehicle which includes imagination, creativity, concepts, ideas and
innovation to promote new products and remind about changes in the old one. Advertising
simply means selling but for this one need a creativity of mind with the work of beauty and art.
Advertising has been a subject discussed over centuries ago, mostly in the 20th and 21st
centuries whether advertising increases prices or lower prices one of the most controversial
issues.

Figure 3.2: Advertisings Models

The figure below describes various models of advertising. In this study the researcher used the
AIDA Model as described below;
Models
Stage AIDA Hierarchy of Innovation- Hierarchy
Model effects Model Adoption or needs
Model Model
Awareness Exposure
Attention Reception
Cognitive Awareness
Stage Knowledge Cognitive
response
Interest Liking Interest Attitude

Desire Preference
Affective Evaluation Intention
stage Conviction
Trial
Behavior
stage Action Purchase Adoption Behavior
Source: (Schramn, 1995)

28
Figure 3.3: Stages of the Buying Process
The figure below provides a description of the five stages of the buying process that each buyer
has to go through.

For clarity, each level is depicted as mutually exclusive. However, there is some overlap between
each level, as no need is ever completely satisfied. For this reason, although all levels of need
below the level that is currently dominant continue to motivate behavior to some extent, the
prime motivator, the major driving force within the individual is the lower level of need that
remains largely unsatisfied.

Consumers buying behavior is focusing on how individuals make decisions to spend valuable
resources (time, money and effort) on consumption related items. This includes what they buy,
why they buy it, when they buy it, where they buy it, how often they buy it, how often they use
it, how to evaluate it after the purchase and the impact of such evaluation in future and how they
dispose of it.

The principle aim of consumer buying behavior analysis is to explain why consumers act in a
particular way under certain circumstances. Other author argues that, it’s important to marketers
to recognize why and how individuals make their purchase decision. With this information,
marketers are able to determine better strategic marketing decisions.

They will be able to predict how consumers are likely to react to various informational and
environment cues and to shape their marketing strategies accordingly once they have understood

29
consumers behavior on purchasing. With no doubt, marketers who understand consumer
behavior have great competitive advantages in the market place.

There are five types of consumer behaviour namely; dissonance reducing, habitual, variety
seeking and complex buying behaviour as described below;

Dissonance reducing buying behavior

Dissonance reducing buying behavior occurs when the customer finds it difficult to differentiate
among the brands. As a result, consumers may respond primarily to a relatively better price.
After the purchase consumer might experience post purchase dissonance (after sales discomfort).
This is the consumer behaviour displayed mostly by uninformed consumers (Kotler and Keller,
2006).

Habitual Buying Behavior

Habitual buying behavior is a consumer purchase decision where by the consumers’ level of
involvement is low. This means that consumers don’t search much information among the
available brands and they don’t find significant differences among the brands and buy the
product without a high level of involvement. If the consumers keep buying the same brand over
and over again, it becomes their habit (Kotler and Keller, 2006).

Variety Seeking Buying Behavior

In case of variety seeking buying behavior the level of consumer involvement is low, but
consumers perceive significant differences among the brands. In variety seeking buying
behavior, consumers very often switch from one brand to another (Kotler and Keller, 2006). This
purchase decision is common among consumers who want to stay ahead of the latest fashion
trends.

Complex Buying Behavior

Complex buying behavior can be defined when consumers are highly involved for making a
purchase decision. Complex buying behavior calls for high level of involvement on the part of
the consumer. In case of high involvement, consumers distinguish salient differences among the

30
competing brands. Consumers’ are highly involved in case of expensive and highly self-
expressive products (Kotler and Keller, 2009).

The following are the factors influencing consumer buying behavior:-

Buyer’s readiness
Communication tools vary in cost-effectiveness at different stages of buyer readiness.
Advertising and publicity play the most important roles in the awareness building stage.
Customer comprehension is primarily affected by advertising and personal selling. Customer
conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by
personal selling and sales promotion (Kotler and Keller, 2009).

Type of product market

Communication mix allocations vary between consumer and business markets. Consumer
marketers tend to spend comparatively more on sales promotion and advertising; business
marketers tend to spend comparatively more on personal selling. In general, personal selling is
used more with complex, expensive, risky goody and in markets with fewer and larger sellers
(Kotler and Keller, 2009).

Product life cycle stage

Communication tools also vary in cost effectiveness at different stages of the product lifecycle.
In the introduction stage, advertising, events and experience, publicity have the highest cost
effectiveness, followed by personal selling to gain distribution coverage and sales promotion and
direct marketing to induce trial. In the growth stage, demand has its own momentum though
word of mouth.

There are three categories of factors which affect consumer behaviour namely; cultural factors,
social factors and personal factors.

31
Cultural Factors
Cultural factors exert a broad and deep influence on consumer behavior which including the
roles of buyers’ culture, subculture and social class. Each culture contains smaller subcultures,
or groups of people with shared value systems based on common life experiences and situations.
Subcultures include nationalities, religions, racial groups, and geographic regions (Kotler and
Armstrong 2008).
Social Factors
A consumer’s behavior also is influenced by social factors, such as the consumer’s small groups,
family, and social roles and status. Social class is an invisible stratification of the inhabitants of
the society into different groups based on some traits of the people. Inhabitants in a society can
be divided into different social classes according to their income level, occupation, education and
so forth (Kotler and Armstrong 2008).

A person’s social class can be defined by what he or she does with money. The consumption
choice of a person also determines the person’s position in society. Every social class varies from
each other because of having its own traits that set it apart from other class. Social classes vary in
costumes, language patterns and many other activities and preferences (Kotler and Armstrong,
2008).

Personal factors
A buyer’s decisions also are influenced by personal characteristics such as the buyers’ age and
life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept.
People change the goods and services they buy over their lifetimes. A person’s occupation
affects the goods and services bought. Similarly, a person’s economic situation affects product
choice (Kotler and Armstrong, 2008).

Psychological factors
A person’s buying choices are further influenced by four major psychological factors:
motivation, perception and attitudes. Motivation is the driving force within individuals that
impels them to action. Perception is the process by which people select, organize, and interpret
information to form a meaningful picture of the world (Kotler and Armstrong, 2008).

32
Attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an
object or idea. Attitudes put people into a frame of mind of liking or disliking things, of moving
toward or away from them. Attitudes are of considerable importance in understanding the role of
attitudes in consumer behavior is an appreciation of the structure and composition of an attitude.

3.2 Research Gap

From literatures reviewed, we can say that, indeed advertising has a positive effect on the
purchase of consumers and it positively influences the sales of companies. We found that most
work done in the subject, found out the effects of advertising on companies’ sales using various
econometric tools. Little can be said of work done on the consumers’ side using econometric
analysis.

In this study most literature were from abroad, hence, there is a gap on local empirical literature
review on the influence of advertising on consumer buying behavior of cosmetics products. This
study aimed to fill this gap by focusing on Forever Living cosmetics products in Tanzania as a
case study.

33
3.3 Conceptual Framework

Figure 3.4: Conceptual Framework Advertising and Consumer’s Buying

Behavior
Types of Advertising

 Persuasive
 Informative
 Reminder
Intervening variables
Media of Advertising

 Television
 Radio
 Internet Dependent variables
 MagazinesBuying Behavior

 What they buy

 Where they buy
 When they
 Why they buy
 How they buy
The conceptual framework provides a description of the relationships between the concepts
being used. Defining the concepts and creating a conceptual framework are means to simplify
the research task and to clear away issues that are not related to the topic and research question.

34
 CHAPTER-4
DATA ANALYSIS & FINDINGS

35
4.1 CONCEPT OF DATA ANALYSIS
The data, after collection, has to be processed and analyzed in accordance with the outline laid
down for the purpose at the time of developing the research plan. This is essential for a scientific
study and for ensuring that we have all relevant data for making contemplated comparisons and
analysis.

By Data analysis we mean the computation of certain indices or measures along with searching
for patterns of relationship that exist among the data groups. Data Analysis is a process of
inspecting, cleansing, transforming and modeling data with the goal of discovering useful
information, suggesting conclusions and supporting decision-making.

4.1.1 Data Analysis Process

1) Define the Questions:

In any organizational or business data analysis, one must begin with the right questions.
Questions should be measurable, clear and concise. The questions designed should either qualify
or disqualify potential solutions to specific problem.

2) Set Clear Measurement Priorities:

This step is broken down into two parts:

a) Decide what to measure

b) Decide how to measure the data

3) Collect Data

Once the questions are clearly defined and measurement priorities are set, next step is to collect
the data. Before you collect new data, determine what information could be collected from
existing databases or sources on hand. Collect this data first.

36
4) Analyze the Data

Once the right data is collected, it’s time for data analysis. The data can be manipulated in
number of ways such as creating a pivot table in Excel.

5) Interpret Results

After analysing the data, it’s finally time to interpret the results. While interpreting the result of
the data, following questions should be kept in mind:-

o Does the data answer the original question? How?

o Does the data help defend against any objections? How?

o Are there any limitations on the conclusion?

The only remaining step is to use the results of the data analysis process to decide the best course
of action.

4.1.2 Data Analysis Plan

A systematic quantitative analysis of the data gathered through the questionnaires is conducted.
Detailed tables have been developed showing the data collected from the respondents. From the
table, percentages were calculated. Data presentation tools have been used, based on which
information was analysed.

The various Data Analysis and Presentation tools used are:

• Tables: When available information is stored in database tables containing rows and columns
to process the information in a meaningful manner.

• Percentages: One of the most frequent ways to represent statistics is by percentage. Percent
simply means "per hundred" and the symbol used to express percentage is %.

• Pie-charts: A Pie-Chart is a circular statistical graphic which is divided into slices to illustrate
numerical proportion. In this, the arc length of each slice is proportional to the quantity it
represents.

37
4.2 Analysis of the Research Data

1) Are you aware about the Company’s Advertising Strategies?

Table 4.1: Awareness about Company’s advertising Strategies

No. of respondents Percentage (%)

Totally aware 25 50

Partially aware 20 40

Not aware 5 10

Total 50 100

Fig4.1: Awareness about Company’s advertising Strategies

PERCENTAGE OF RESPONDENTS
Totally Aware Partially Aware Not Aware

10%

50%
40%

INFERENCE:
50% respondents are totally aware about the cosmetics advertising strategies, 40% respondents
are partially aware about the advertising strategies and 10% of the respondents have no idea
about the advertising strategies.

38
These findings show that majority of respondents are aware of advertising strategies used in
advertising Forever Living products. With this regard, the Forever Living customers are well
aware of the various products and services they are buying and they make informed decisions
before purchasing.

2) Experience in Cosmetic Industry

Table 4.2: Experience of Respondents in Cosmetics Industry
0-2 Years 2-4 Years 4-6 Years More than 6 TOTAL
Years

No. of respondents 10 5 10 25 50

Percentage (%) 20 10 20 50 100

Fig 4.2: Experience of Respondents in Cosmetics Industry

Number of Respondents
0-2 Years 2-4 Years 4-6 Years More than 6 years

20%

50% 10%

20%

39
INFERENCE:
20% of respondents have 0-2 years of experience in cosmetic industry, 10% of respondents have
2-4 years of experience, 20% of respondents have 4-6 years of experience and 50% of
respondents have more than 6 years of experience in cosmetic industry.

These findings show that majority of respondents have vast experience in the cosmetics industry
and this enhances their ability to perform well in their Forever Living cosmetics business. This
means, the more experienced customers are with using Forever Living consumer products, the
more likely they are to be influenced by advertisements when making their purchasing decisions.

3) Do you think advertising attracts attention on Forever Living Cosmetic

Products?

Table 4.3: Advertising Attracts Attention on Forever Living Cosmetics

Products

YES NO TOTAL

No. of respondents 35 15 50

Percentage (%) 70 30 100

Fig 4.3: Advertising Attracts Attention on Forever Living Cosmetics Products

Number of Respondents
Yes No

30%
70%

40
INFERENCE:
It shows that 70% of respondents agree that advertising attracts attention on Forever Living
Cosmetic Products and 30% of the respondents do not agree with the same.

The respondents were of the opinion that advertising enables consumers to find out various
information about the cosmetics products including where the product was made, ingredients of
the products, quality of the products and the benefits of using the product.

4) Advertising Influences Consumer Buying Behavior by Creating Desire

Table 4.4: Advertising Creates Desire for Forever Living Cosmetics Products
Strongly agree Agree Disagree Strongly disagree TOTAL

No. of respondents 20 10 15 5 50

Percentage (%) 40 30 20 10 100

Fig 4.4: Advertising Creates Desire for Forever Living Cosmetics Products

Number of Respondents
Strongly Agree Agree Disagree Strongly Disagree

10%
20% 40%

30%

41
INFERENCE:
It shows that 40% of the respondents strongly agree that advertising creates desire for forever
living cosmetic products, 30% of the respondents agree that that advertising creates desire for
forever living cosmetic products, 20% of the respondents disagree that that advertising creates
desire for forever living cosmetic products and 20% of the respondents strongly disagree that that
advertising creates desire for forever living cosmetic products.

These findings suggest that advertising helps to influence consumer buying behavior by making
the consumer want to use Forever Living cosmetics products instead of other cosmetics products.
Fist time users of Forever Living cosmetics products are more likely to be influenced by to start
using Forever Living products after seeing advertisements.

5) Product Quality

Table 4.5: Product Quality Influences Consumer Buying Behavior

Strongly agree Agree Disagree Strongly disagree TOTAL

No. of respondents 20 10 15 5 50

Percentage (%) 40 30 20 10 100

Fig 4.5: Product Quality Influences Consumer Buying Behavior

Number of Respondents
Strongly Agree Agree Disagree Strongly Disagree
10%

20% 40%

30%

42
INFERENCE:
It shows that 40% of the respondents strongly agree that product quality influences consumer
buying behavior, 30% of the respondents agree that product quality influences consumer buying
behavior, 20% of the respondents disagree that product quality influences consumer buying
behavior and 20% of the respondents strongly disagree that product quality influences consumer
buying behavior.

These findings show that product benefits influence consumer buying behaviour. Consumers
are more likely to start using a product after becoming aware of the quality of the products
through advertisements.

6) Influence of Product Ingredients on Consumer Buying Behavior

Table 4.6: Product Ingredients Influence Consumer Buying Behavior

Strongly agree Agree Disagree Strongly disagree TOTAL

No. of respondents 42 4 2 2 50

Percentage (%) 84 8 4 4 100

Fig 4.6: Product Ingredients Influence Consumer Buying Behavior

Number of Respondents
Strongly Agree Agree Disagree Strongly Disagree

4% 4%
8%

84%

43
INFERENCE:
It shows that 84% of the respondents strongly agree that product ingredients definitely influence
consumer buying behavior. 8% of the respondents also agree with the same. But 4% of the
respondents disagree with the fact that product ingredients influence consumer buying behavior.
4% of the respondents also strongly disagree with the same.

These findings show that product ingredients influence consumer buying behavior. This shows
that customers are more likely to start using a product after becoming aware of the ingredients of
the products through advertisements.

7) Influence of Product Price on Consumer Buying Behavior

Table 4.7: Product Price Influences Consumer Buying Behavior

Agree Disagree TOTAL

No. of respondents 37 13 50

Percentage (%) 74 26 100

Fig 4.7: Product Price Influences Consumer Buying Behavior

Number of Respondents
Agree Disagree

26%

74%

44
INFERENCE
It shows that 74% of the respondents agree that product price influence consumer buying
behavior and 26% of the respondents disagree that product price influence consumer buying
behavior.

These findings show that product price influence consumer buying behavior. This shows that
consumers are more likely to make the decision to purchase a product after becoming aware of
the price of the product through advertising.

8) Influence of Models Used in Advertisement on Consumer Buying Behavior

Table 4.8: Models Used in Advertisement Influences Consumer Buying

Behavior

Agree Disagree TOTAL

No. of respondents 47 3 50

Percentage (%) 94 6 100

Fig 4.8: Models Used in Advertisement Influences Consumer Buying Behavior

Number of Respondents
Agree Disagree

6%

94%

45
INFERENCE
It shows that 94% of the respondents agree that models used in advertisements influence
consumer buying behavior and 6% of the respondents disagree that models used in
advertisements influence consumer buying behavior.

These findings show that models used in advertisement influence consumer buying behavior and
that consumers are more likely to buy a product after being influenced by the model used in the
advertisements.

9) Influence of Brand Name on Consumer Buying Behavior

Table 4.9: Brand Name Influences Consumer Buying Behavior

Agree Disagree TOTAL

No. of respondents 37 13 50

Percentage (%) 74 26 100

Fig 4.9: Brand Name Influences Consumer Buying Behavior

Number of Respondents
Agree Disagree

26%
74%

46
INFERENCE
It shows that 74% of the respondents agree that brand name influences consumer buying
behavior and 26% of the respondents disagree that brand name influences consumer buying
behavior.

These findings show that brand name influence consumer buying behavior. This means
consumers are more likely to make the decision to buy a product based on the name of the brand
as seen in advertisements.

10) Influence of Product Color on Consumer Buying Behavior

Table 4.10: Product Color Influence Consumer Buying Behavior

Agree Disagree TOTAL

No. of respondents 10 40 50

Percentage (%) 20 80 100

Fig 4.10: Product Color Influence Consumer Buying Behavior

Number of Respondents
Agree Disagree

20%

80%

47
INFERENCE
This shows that 20% of the respondents agree that product color influences consumer buying
behavior and 80% of the respondents disagree that product color influences consumer buying
behavior.

These findings show that product color does not influence consumer buying behavior. This
means that some consumers are likely to be influenced to purchase a particular product due to
their color preferences or affiliation with a particular color. But most of the consumers are not
really concerned about the color of the product.

4.3 FINDINGS

1) Majority of respondents are aware of advertising strategies used in advertising Forever Living
products. With this regard, the Forever Living customers are well aware of the various products
and services they are buying and they make informed decisions before purchasing.

2) Many of the respondents have vast experience in the cosmetics industry and this enhances
their ability to perform well in their Forever Living cosmetics business. This means, the more
experienced customers are with using Forever Living consumer products, the more likely they
are to be influenced by advertisements when making their purchasing decisions.

3) The respondents were of the opinion that advertising enables consumers to find out various
information about the cosmetics products including where the product was made, ingredients of
the products, quality of the products and the benefits of using the product.

4) These findings suggest that advertising helps to influence consumer buying behavior by
making the consumer want to use Forever Living cosmetics products instead of other cosmetics
products. Fist time users of Forever Living cosmetics products are more likely to be influenced
by to start using Forever Living products after seeing advertisements.

5) Consumers are more likely to start using a product after becoming aware of the quality of the
products through advertisements.

48
6) Customers are more likely to start using a product after becoming aware of the ingredients of
the products through advertisements.

7) Consumers are more likely to make the decision to purchase a product after becoming aware
of the price of the product through advertising.

8) Models used in advertisement influence consumer buying behavior and that consumers are
more likely to buy a product after being influenced by the model used in the advertisements.

9) Consumers are more likely to make the decision to buy a product based on the name of the
brand as seen in advertisements.

10) Some consumers are likely to be influenced to purchase a particular product due to their
color preferences or affiliation with a particular color. But most of the consumers are not really
concerned about the color of the product.

11) Women engage more of forever living products business.

12) Advertising of Forever living products has been outlined as the most significant factors by
respondents. Integrated marketing communication mix(promotional mix) elements played a key
in consumers adoption and products knowledge, this includes special events and word of mouth
which carried majority percentages on its effectiveness on consumers production knowledge and
adoption, followed by magazine advertising, use of social media such as facebook, DVD
advertising, web based and T-shirts print outs advertising.

13) Consumers purchasing decisions on buying forever living products is determined by

Marketing Communication model such as AIDA model, whereby advertisement creates
attention, arouse interests, creates desire and draws attention to the consumers.

49
 CHAPTER-5
CONCLUSION
&
RECCOMENDATIONS

50
5.1 CONCLUSION
1) From the findings of the study, it can be concluded that advertising plays a very significant
role in influencing consumers buying behavior by attracting their attention, arousing their
interest, creating desire for the product and finally make them decide to purchase the products.

These findings are compatible to the AIDA advertising model.

2) During the study, it was found that Forever Living uses various advertising strategies namely;
event and word of mouth advertising, magazine advertising, Facebook advertising, DVD
advertising, trade fair advertising, event advertising, T Shirt and Website advertising.

Through these advertising strategies, the company has been able to attract more buyers.

3) Advertisements used by Forever Living to promote cosmetics products influences consumer

buying behavior by; providing them with information about product benefits, price, quality,
ingredients, quality, product quantity, product testimonial, product packaging, product name and
product color.

The advertisement creates awareness of the products and attracts more buyers.

51
5.2 RECCOMENDATIONS
1) The country is experiencing much possession of various cosmetics products users and this
brings stiff competition under this circumstance, it is essential to investigate what motivates
consumers to buy forever living products. This research has shown that advertisement as part of
the promotional mix should be given the highest priority by the Organization preceding pricing
and distribution of forever living products.

2) Since marketing mix elements determine the success or failure of every business program in
the Organization, management needs to enhance effective marketing programs that can be
managed by the organization so that the organization can increase the adoption of forever living
products.

3) Since this study has indicated that product benefits, ingredients, quantity, quality, product
price, models used in advertisements, product testimonials, product packaging, product names
and product color are significant factors in consumer buying behavior of forever living products
especially cosmetic products, it is essential for the Organizations to investigate further what
motivates people to purchase cosmetic products by looking on other factors such as, past internet
experience, income, culture of the society etc.

4) Forever Living Company needs to respond to market demands in business and in developing
of its products. This should be in line with the management of the marketing mix elements on in
carrying out the Organizational marketing programs and tactics.

5) In order for Forever living Company to be effective on its products adoption, Customer
understanding of their needs and wants are of utmost importance, and the first customers are the
its intermediaries(middlemen). Middlemen shall be very motivated to work, after having enough
training on customer care and customer relations skills. They will serve well the members and
attract non-members to join the business networks as well as having effective consumers’
adoption and purchase of its products.

52
 BIBLIOGRAPHY

Journals & Papers

1) Alfred, Marshal l (1890). Principles of Economics. 9th ed. 2 vols. New York and London:
Macmillan. The eighth edition

2) Alfred, Marshall (1919). Industry and Trade: A Study of Industrial Technique and Business
Organization, and of Their Influences on the Conditions of Various Classes and Nations.
London: Macmillan.

3) Ahmed and Ashfaq (2013). Impact of Advertising on Consumers’ buying behavior through
Persuasiveness, Brand Image, and Celebrity endorsement. Global Media Journal: Pakistan
Edition, 6(2), p.2.

4) Abideen1, Zain-Ul, Waqas Farooq, and Abdul Latif (2011). "How urban children process
advertising message: special reference to television advertising in Pakistan." African Journal of
Business Management, May 2011: 3962-3974.

5) Borden, Neil H. (1942), The Economic Effects of Advertising, Chicago: Richard D. Irwin,
Inc.

6) Byabato (2009).Factor influencing consumer purchase decision among Tanzanians.

7) Bain, Joe S. (1956), Barriers to New Competition: Their Character and Consequences in
Manufacturing Industries, Cambridge, MA: Harvard University Press.

53
8) Bin Junaid A. et al. (2013), ”A Study on the Purchase Behavior and Cosmetic Consumption
Pattern Among Young Females in Delhi and NCR”, Journal of Social and Development
Sciences, Vol. 4, No. 5, pp. 205-211, May 2013 (ISSN 2221-1152)

9) Bagwell, Kyle (2001), “The Economic Analysis of Advertising,” mimeo.

10) Braithwaite, Dorothea (1928), “The Economic Effects of Advertisement,” Economic

Journal, 38, 149, March, 16-37.

11) Blackwell, R.D., Paul, W.M. and James, F.E. (2011), “Attributes of attitudes”, Consumer
Behavior, Thomson Press, New York, NY, pp. 235‐43.

12) Bovee, C. L., & Thill, J. V. (2002). Business communication today (10 th ed.). Boston:
Prentice Hall.

13)Frankel, J., & Wallen, N. (2000). How to design and evaluate research in education. Boston,
MA: McGraw-Hill Higher Education

14) Gabor, A (1988). Pricing, Concepts and Methods for Effective Marketing (2nd ed.), Gower
Publishing Company Limited. USA.

15) Geeta Sonkusare (2013) ,”The impact of television advertising on buying behavior of women
consumers with special reference to FMGCG Products Chandrapur City”

54
16) Gramm (1969), “a reconsideration of advertising expenditures, aggregate demand and
stabilization”

17) Hafiz Muhammad Arshad et all (2014) ‘Impact of Effective Advertising on Consumer
Buying Behavior, a study of Mobile Phone Purchasers in Pakistan

18) Kotler, P. & Keller, K.L. (2006). Marketing Management (12th ed.). Upper Saddle River,
NJ:Prentice Hall.

19) Kotler, P., & Keller, K. L. (2009). Marketing management. Upper Saddle River, N.J.,
Pearson Prentice Hall.

20) Kotler, P. & Armstrong, G. (2008). Principles of Marketing (12th ed.). Upper Saddle River,
NJ: Prentice Hall.

21) Kumar A. (2011) “Advertising and Consumer Buying Behaviour: A Study with special
reference to Nestle ltd.”, Volume No. 2 (2011), issue No. 10 (October, 2011), International
Journal of Research in Commerce &Management.

22) Philip, A.P. (2007): The Relationship between Advertising and Consumption in India: An
Analysis of Causality, International Marketing Conference on Marketing & Society, 8-10 April
2007, IIMK.

23) Proctor, R. and M. A. Stone. 2002. Marketing Research. Great Britain: Macdonald and
Evans Ltd.

55
24) Roberts, J. (1987). "Perfectly and imperfectly competitive markets", The New Palgrave: A
Dictionary of Economics, v. 3, pp. 837–41.

25) Rehman et al (2014), “How Advertising Affects the Buying Behavior of Consumers in Rural
Areas”: A Case of Pakistan”,

WebPages

1) http://ictactjournals.in/paper/IJMS_Vol4_Iss3_Paper4_800_808.pdf

2)https://www.researchgate.net/publication/297685041_INFLUENCE_OF_ADVERTISING_O
N_CONSUMER_BUYING_BEHAVIOUR_CASE_STUDY_OF_FOREVER_LIVING_COSM
ETICS_PRODUCTS

3) Google Scholar

4) https://www.abacademies.org/articles/a-study-on-the-influences-of-advertisement-on-
consumer-buying-behavior-7177.html

5) https://www.simplypsychology.org/maslow.html

6) https://en.ryte.com/wiki/AIDA

7) https://www.pearson.com/us/higher-education/product/Kotler-Marketing-Management-12th-
Edition/9780131457577.html

8) https://www.researchgate.net/publication/225084026_Marketing_Management

9) https://www.academia.edu/35388508/Kotler_and_Armstrong_-
_Principles_of_Marketing_17th_GLOBAL_Edition_c2018_txtbk

10) http://journals.ama.org/doi/10.1509/jimk.11.1.13.20140

56
 ANNEXURE

Dear Sir/ Madam,

This is a survey conducted to gather information on consumer perception and attitude towards
influence of advertising on consumer buying behavior. Please give your responses honestly, as
this will enable a true assessment of the current scenario in this field. You are requested to kindly
extend your co-operation & I thank you in advance for your time, effort and interest shown in
filling up this questionnaire.

Personal details of the respondent-

Name: _____________________________ Age: ________ Gender: ___________

Occupation: ____________________

1) Are you aware about the company’s advertising strategies?

a) Totally Aware

b) Partially Aware

c) Not Aware

2) How much experience do you have in cosmetic industry?

a) 0-2 Years

b) 2-4 Years

c) 4-6 Years

d) More than 6 Years

57
3) Do you think advertising attracts attention on Forever Living Cosmetic Products?

a) Yes

b) No

4) Do you think advertising influences consumer buying behavior by creating desire?

a) Strongly Agree

b) Agree

c) Disagree

d) Strongly Disagree

5) According to you, does product quality influence consumer buying behavior?

a) Strongly Agree

b) Agree

c) Disagree

d) Strongly Disagree

6) Do product ingredients influence consumer buying behavior?

a) Strongly Agree

b) Agree

c) Disagree

d) Strongly Disagree

58
7) Do you think product price influence consumer buying behavior?

a) Agree

b) Disagree

8) Models used in advertisements helps influence consumer buying behavior?

a) Agree

b) Disagree

9) Does brand name influence consumer buying behavior?

a) Agree

b) Disagree

10) Color of the product influences consumer buying behavior?

a) Agree

b) Disagree

59