Chapter - 4 ANALYSIS AND...

Chapter - 4

ANALYSIS AND

INTERPRETATION

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Chapter - 4

ANALYSIS AND INTERPRETATION

This chapter presents the data analysis and research findings. It describes the analysis

of the data, the statistical results, and acceptance or rejection of the hypotheses. The

second section includes the discussion of the results. Any research based on

measurements must be concerned with the dependability, or, as it is usually called,

reliability of measurements. This particular study was designed to examine cognitive

processes involved in consumer buying process.

Advertisements influence consumers‟ purchase decision and more importantly, their

marginal willingness-to-pay for the advertised brand. Of course, for this effect to be

of any significance to the producer, consumers must believe that advertisements

reveal the true quality and characteristics of the product. Thus, for a consumer who

believes that advertisements are intended to make people think that competing brands

are differentiated, though they are not, there will be no positive demand effect.

Further, advertisements change the relative evaluation of competing brands and thus

result in a consumer switch. Advertisements are often used by the incumbent firms as

an entry-deterring strategy. On the one hand, the potential entrants must match the

advertisement expenditure incurred by the incumbent firm to gain a positive market

share.

It is also apparent that there is a strong correlation between the perceived importance

of advertising as an entry-deterring tool and the intensity of advertising spending.

Multivariate modelling provides confirmation that the existence of a sheltered market

position and the profitability that typically accompanies this provides a statistically

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significant determinant of the decision to use advertising as a strategic entry-deterring

weapon. Moreover, since advertisement expenditure is a sunk cost which cannot be

recovered even after stopping production, the entrant expects the incumbent to engage

in cut-throat post-entry competition and tolerate short-run losses to the extent of such

expenditure.

At a fundamental level, the consumer behaviour discipline is concerned with

understanding how and why consumers purchase products and services. The goal of

consumer behavior research is to describe and predict how consumers will behave

when faced with alternative product choices (Hauser & Urban, 19791); in line with

this goal, this study seeks to describe how consumers behave when making wine

purchasing decisions. Consumer behaviour has been broadly defined as “those actions

directly involved in obtaining, consuming, and disposing of products and services,

including the decision processes that precede and follow these actions” (Engel,

Blackwell, & Miniard, 19932).

An abundance of theoretical models have been developed to depict how consumers

make purchase decisions, from the 1940‟s through to today. The development of these

models has coincided with the maturing consumer behaviour discipline; the models

have moved from those which were deeply rooted in rational and conscious economic

thought, through to those which have a greater basis in psychology and sociology.

One of the most well known consumer decision making models is that of Howard and

Sheth; this model suggested that consumers apply certain choice criteria to alternative

brands, even for the most simple and habitual choices (Olshavsky & Granbois,

19793).

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Traditional consumer decision making models, such as the Howard and Sheth and the

Engel, Blackwell and Kollat models, have been dominated by a cognitive approach.

Cognitive models make an assumption that consumers know what they want and that

they are capable of obtaining and processing the information required in order to

make sensible choices (Foxall, 20034). Consumers search their memory for

information they already possess and if this is insufficient they will engage in external

search for information. Early models tended to argue that consumers comprehensively

considered the implications of their actions before they engaged in purchase

behaviour (Derbaix & Abeele, 19985) and that consumers acted as problem-solving

decision makers (Hansen, 20056).

In more recent times, the domination of the cognitive paradigm has been questioned.

The major issue with cognitive models is that human beings are not perfect processors

of information (Derbaix & Abeele, 1998; Pinson & Jolibert, 19987). Consumers do

not strictly obey the principles of economic rationality, but neither do they behave in a

random manner, thus making it difficult to adequately describe their actual behaviour

in a model (Pinson & Jolibert, 1998). Evidence suggests that consumers do not use

rational rules or deliberate reasoning to identify the best possible solution, but are

often guided by subjective reactions, impulses, personal impressions or mental images

induced by stimuli (Pinson & Jolibert, 1998; Zaltman, 20038). Olshavsky and

Granbois (1979) reported evidence to suggest that consumers in many instances do

not engage in extended search or evaluation steps; the choice process was found to

involve the evaluation of only a few alternatives, little extensive search, and few

evaluative criteria. Zaltman (2003) suggested that the choice process is often

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relatively automatic, stems from habit and other unconscious forces, and is greatly

influenced by the consumer‟s social and physical situation. Further issues with the

cognitive-dominant view of consumer decision making arise from consumers having

less time for shopping, being faced with an increasing number of choices, and feeling

overloaded with information (Zaichkowsky 19919). „Rules of thumb‟ and heuristics

are often utilised by consumers to simplify purchase decisions in today‟s complex

world.

The data after collection are to be processed and analyzed in accordance with the

requirement and purpose at the time of the development of the scale. It is essential for

such a scientific study that only the relevant data should be used from the collection

of such a voluminous data and processed through the proper statistical tools. Data

were thoroughly evaluated before analysis. Data were analysed with the help of

Statistical Package for Social Sciences (SPSS package) and the MS-EXCEL tool.

The data has been analysed as per the objectives of the study.

1. Relationship between shopping pattern and frequency of being influenced

by advertisements.

The main objective is to extract the cognitive effects of advertisements on consumers,

how they think, feel, reason, and select between different alternatives (e.g., brands,

products, and retailers); the behaviour of consumers while shopping or making other

marketing decisions after watching an advertisements; how consumer motivation and

decision strategies differ between products that differ in their level of importance or

interest that they entail for the consumer; and how marketers can adapt and improve

their marketing campaigns and marketing strategies to more effectively reach the

consumer. What may appear to be harmless to one person or a group may be

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misleading to the other. When an advertisement is introduced into the perceptual

process of the audience it brings certain cognitive changes in their buying behaviour.

The experts, who follow the cognitive response model, believe that people actively

relate information contained in persuasive messages to their existing feelings and

beliefs about the message topic. Pre-existing thoughts generated by the consumer may

be positive, negative or neutral to the message. It is more likely that people agree with

persuasions that already follow their own beliefs and disagree with persuasions that

are not consistent to their preconceived opinions.

To check whether advertisements influenced the shopping pattern of consumers and if

yes then at what frequency was the first dimension to be analysed and interpretation?

Chi-square test was applied to check whether these two dimensions were dependent or

not. For this the following hypothesis has been developed.

H1: Advertisements influence shopping pattern of consumers with varying degree of

frequency

Table-4.1

Influence of Advertisements on Shopping Pattern of Consumers:

Degree of Frequency

Yes No Total

Always 96 42 138

Often 124 30 154

Sometimes 173 44 217

Total 393 116 509

Chi-square value=0.276211 at 5% significance level

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The results of Table-4.1 show that 509 individuals were asked whether their shopping

pattern gets influenced by advertisements, out of which 393 consumers said they are

influenced but 116 were not influenced. This response was then related with

frequency of advertisements i.e. always, often and sometimes. Out of 393 consumers,

96 were always influenced; 124 often influenced and 173 were sometimes influenced

by advertisements. The responses were related with frequency of advertisements also.

The chi-square value at 5% significance level is insignificant. The results shown in

the above table indicate the non-acceptance of hypothesis H1 implying that there is no

relationship between frequency of watching advertisements and shopping pattern of

the individuals.

2. Role of different means of media in influencing the purchase behaviour of

the consumer.

Advertising messages are usually paid for by sponsors and viewed via various

traditional media; including mass media such as newspapers, magazines, television

commercial, radio advertisement, outdoor advertising or direct mail; or new media

such as websites and text messages. Since information technologies were developed,

the spread of information has been much faster than before. Traditional

advertisements, such as television advertisements, radio advertisements and

newspaper advertisements, are not sufficient for companies to promote their products

and services. However, due to the overload information of advertisements, consumers

do not have enough time to review by themselves and are compelled to ignore most of

http://en.wikipedia.org/wiki/Outdoor_advertising

http://en.wikipedia.org/wiki/Website

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the advertisements. Instead, they usually prefer to gain opinions and experiences

about products or services which they want to purchase from their friends, colleagues

or families. It is easier for people to search information about all kinds of products on

the Internet. Therefore, Word-of-mouth plays a very important role in consumer

behaviour and it has the effect on consumers‟ decisions of long-term and short-term

procurements (Dolen et al., 2007)10

. Furthermore, internet offers the fastest and most

convenient channel for consumers to exchange information, so more and more people

exchange their opinions and experiences about products and services on the Internet.

Such exchanging behaviour is regarded as the electronic word-of-mouth (Hennig-

Thurau et al., 200411

; Litvin et al., 200812

; Casalo et al., 200813

).

The focus of this objective is to study the media usage by the consumers, i.e. assess

the role of different means of media like television, newspapers, radio, magazines,

word of mouth and internet in influencing the purchase behaviour of consumers

regarding food products, beverages, apparels and accessories. For this the following

hypothesis has been extracted.

H2: The purchase behaviour of consumers is influenced by different types of media.

Different means of media are used to communicate commercials to the consumers.

The reliability of these means is perceived differently by the consumers. So this is

really vital for the study to examine the influenced by different types of media on

purchase behaviour of consumers.

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Table-4.2

Purchase Behaviour of Consumers: Influence of Different Types of Media.

Mean values F-value

Radio Word of

mouth

TV Newspaper Magazine Internet

1 (S2.5) 4.59 3.85

3.57

3.91

3.8

3.88

7.01

2 (S2.6) 3.86

3.8

3.79

4.32

4.47

3.67

9.59

3 (S2.7) 4.27

3.18

3.08

3.62

2.47

2.96

10.03

4 (S2.8) 3.96

3.08

3.42

3.65

3.60

3.42

4.03

5 (S2.9) 4.14

3.38

3.56

3.96

3.4

3.75 6.66

6 (S2.10) 4.27

3.48

3.54

3.80

3.87

3.75 3.69

7 (S2.11) 4.36

3.25

3.35

3.64

3.00

3.17 5.60

8 (S2.12) 4.27

3.43

3.56

3.70

3.53

3.46 2.63

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In order to evaluate the hypothesis that different means of media influence the

purchase behaviour of consumers, one way ANOVA has been applied. The mean

value of S2.1 was obtained that was related to the ranking of different media

according to the attention they get the most so far as advertisements are concerned.

Thereafter, with help of these mean values F-value for S2.5 to S2.12 was calculated.

In Table-4.2 F-value is to judge whether the difference among several sample mean is

significant or is just matter of sampling fluctuations for every statement. For this

purpose, we look into the table giving the value of F for given degree of freedom at

different levels of significance. If the worked out value of F as stated above is less

than the table value of F, the difference is taken as insignificant. If the calculated

value of F happens to be either equal or more than its table value, the difference is

considered as significant and accordingly the conclusion may be drawn.

The results shown in Table-4.2 indicate the acceptance of hypothesis H2 as F value =

7.01was found to be significant at 5% Significance level for S2.5. This implies that

individuals purchase behaviour gets influenced differently when they are exposed to

advertisements of different types of media. Results of mean values depicted in Table-

4.2 also show that individuals purchasing behaviour gets influenced by radio more

than other means of media (Television, Magazines, News Paper, Internet and Word of

Mouth) when they tend to compare information regarding a particular product.

The results of Table-4.2 show that F value = 9.59 is found to be significant at 5%

Significance level for S2.6. This implies that when consumers are exposed to

advertisements on different types of media, purchase behaviour of the consumers gets

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influenced and results of mean values also depict that when they see an advertisement

in magazines they don‟t even inquire about the quality of products.

Further, the results of Table-4.2 show that F value = 10.03 is found to be significant at

5% Significance level for S2.7. The result of mean value for Radio is 4.27 and it

depicts that the consumers purchasing behaviour gets influenced more by this channel

and they straightaway purchase products.

In regard to results of Table-4.2 shows that F value = 4.03 is found to be significant at

5% Significance level for S2.8. After watching advertisements from different means

of media, consumers are under influence especially Newspaper and Radio because

Table-4.2 shows that mean values of News paper and Radio are more than other

means of media. Thus, consumers have more faith in these media while making

purchase decisions.

Then, regarding S2.9 the results of above Table-4.2 show that F value = 6.66 is found

to be significant at 5% Significance level. According to results in Table-4.2 mean

value of radio is 4.14 which is higher than other means of media. So, it may be

inferred that customers pay maximum attention to commercials aired on radio.

For S2.10, the results of above table show that F value =3.69 found to be significant

at 5% Significance level. The results in Table-4.2 show that mean values of radio is

4.27 which is higher than other means of media. This implies that customers try to

gather information from different types of media for a particular product but they

have strong faith in Radio and the purchasing behaviour is influenced by Radio

advertisements more than any other means of media.

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The results of Table-4.2 show that F value = 5.60 found to be significant at 5%

Significance level for S2.11. This implies that individuals purchase behaviour gets

influenced when they watch advertisements of different types of media. This implies

that customers don‟t have faith in the products exhibited in magazines because the

mean value attained for magazine in this statement is the lowest i.e. 3.00.

The results of Table-4.2 show that F value = 2.63 found to be significant at 5%

Significance level for S2.12. Again the results in Table-4.2 show that the

advertisements of radio are more reliable than other type of media because consumers

find same type of products as described in the advertisements on radio as the mean

value of radio is 4.36 for S2.12.

Hence, from the results of Table-4.2 it can be concluded that hypothesis H2 is

accepted because different types of media influence the purchase behaviour of

consumers.

3 Role of advertisements in forming and preventing cognitive dissonance of

the consumers about particular products.

Why and how does dissonance ever arise? How does it happens that consumers some

time find themselves doing things that do not fit with what they know, or having

opinions that do not fit with other opinions they hold? There is a fairly wide variety

of situations in which dissonance is nearly unavoidable. But it remains for us to

examine the circumstances under which dissonance, once arisen, persists and how it

may be avoided.

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After purchasing the product, the buyer will experience some level of satisfaction or

dissatisfaction. The marketers‟ job does not end when the product is bought but

continues into the post purchase period. Marketers must monitor post purchase

satisfaction, post purchase actions and cognitive dissonance. The buyer’s

satisfaction or dissatisfaction will influence future behaviour. A satisfied buyer will

purchase the product again and recommend it to others. Dissatisfied buyers will

respond differently. They may stop using the product, return it, or take some form of

public action. (Strydom et al. 2000)14

.

The consumers‟ decision process does not end with the purchase. Rather, the experience

of buying and using the product provides information that the consumer will use in future

decision making. In some cases, the consumer will be pleased with the experience and

will buy the same product from the same supplier again. In other cases, the consumer will

be disappointed and may even return or exchange the product. In general, the post

purchase process includes four steps: decision confirmation, experience evaluation,

satisfaction or dissatisfaction, and future response. Czinkota et al. (2000)15.

In markets in which first-time purchases are rare, advertising helps either switching or

retaining customers who otherwise might switch. There are three possible

consequences advertising exposure can have on a consumer‟s brand choice. It can

increase the probability that the consumer will change brands (brand switching), it can

induce the consumer to stay with the brand last purchased (repeat purchasing) or it

can have no effect on choice probabilities. Each of these effects is possible and

presents a number of different mechanisms. Brand switching effects can result from

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advertising building, brand awareness or altering beliefs about brands. Repeat

purchasing effects can result directly from advertising or, alternatively, from an

interaction between advertising and brand usage.

The present investigation was conducted to study advertisements in relation to

cognitive dissonance of consumers regarding food products, beverages, apparels and

accessories. To examine the impact of advertisements in forming and in preventing of

cognitive dissonance objective was divided in two parts. S3.6, S3.11, S3.12, and

S3.14 were selected to examine the impact of advertisement in forming cognitive

dissonance. Further, S3.7, S3.8, S3.9, S3.10, S3.13, and S3.15 were selected to

analyse the role of advertisements in preventing cognitive dissonance.

The obtained data were analysed by applying descriptive statistics i.e. mean and

standard deviation. The responses were recorded on a 5- point Likert scale where „1‟

means strongly disagree and „5‟ means strongly agree. So if a response is greater than

3 that would imply either agree or strongly agree with a particular statement. In order

to find out formation of the cognitive dissonance among consumers, one tailed t-test

was applied. For this, the following hypothesis has been developed:

H3a The advertisement of different media results in formation of Cognitive

Dissonance if sample mean is greater than 3

Whether advertisements attempt to create imaginary difference between products that

are actually identical or very similar in composition and that may result in forming

cognitive dissonance, is examined here.

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Table-4.3a

Role of Advertisement in Formation of Cognitive Dissonance

Forming cognitive

dissonance

Mean value SD t- Values

1 (S3.6) 3.65 0.98 16.41*

2 (S3.11) 3.84 0.85 24.73*

3 (S3.12) 3.46 1.03 11.15*

4 (S3.14) 3.63 0.93 17.00*

*Significant at 5% significance level

Table-4.3a presented the mean and SD and t-value of the observed variable. The mean

and SD for S3.6 is 3.65 and 0.98 respectively. The t-value is 16.41 which is

significant at .05 level. The results show that advertisements attempt to create

imaginary difference between products that are actually identical or very similar in

composition and that may result in forming cognitive dissonance.

The mean and SD for S3.11 is 3.84 and 0.85 respectively. The t-value is 24.73 which

is again significant at .05 level. The health foods like Bournvita, Complain, Dabur

Chyawanprash etc. are of almost same characteristics and quality. The results show

that when consumer is exposed to advertisements of similar type of health foods, they

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easily switch over from one brand to another. So the advertisements can easily change

the purchasing decision of the consumer if the products are of almost same quality.


is significant at .05 level. The results show that when a promotion is over consumers

go back to regular brand. So, when consumers change the products due to any

promotional offer, they go to the brand they generally use. Thus dissonance may be

formed due to any promotional offer but dissonance for such product is not

permanent.


is significant at .05 level. The result shows that the advertisements influence the

purchase decision of consumers who enjoy trying something different; even if they

like their brand, by watching advertisements they switch to other brands.

The above results indicate that there is enough evidence at 5% significance level for

non rejection of hypothesis H3a. In case of almost similar products, advertisements

play significant role in forming cognitive dissonance. Promotional offers may also

contribute in forming cognitive dissonance. Advertisements work for such segment of

consumers also who enjoy trying something new.

H3b The advertisement of different media results in preventing cognitive dissonance

if sample mean is greater than 3.

When and how advertisement play a role in preventing cognitive dissonance is

examined here.

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Table-4.3b

Role of Advertisement in Preventing Cognitive Dissonance

Preventing

cognitive

dissonance

Mean value SD t-Values

1 (S3.7) 3.65 0.95 17.12*

2 (S3.8) 3.61 0.91 16.63*

3 (S3.9) 3.62 1.02 15.31*

4 (S3.10) 3.49 1.06 11.54*

4 (S3.13) 3.56 1.03 13.65*

5 (S3.15) 3.64 0.99 16.14*


The obtained data were analysed by applying descriptive statistics i.e. mean and SD.

The responses were recorded on a 5- point Likert scale where „1‟ means strongly

disagree and „5‟ means strongly agree. So if a response is greater than 3 that would

imply either agree or strongly agree with a particular statement.

Table-4.3b presents the mean and SD and t-value of the observed variable. The mean

and SD for S3.7 is 3.65 and 0.95 respectively. The t-value is 17.12 which is

significant at .05 level.

The mean and SD for S3.8 is 3.61 and 0.93 respectively. The t-value is 16.63 which is

significant at .05 level. The results show that Branded shoes (e.g. Hush Puppies, D &

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G, Jimmy Choo, Liberty etc.) are strong enough to keep consumers coming back for

more and there is no need to watch the advertisements of other brands. The quality of

these brands is so high that prevents the consumer from shifting to other brand.


significant at .05 level. So, it may be inferred that use of International brands of

Health foods (Amway, Herb life, etc.) give the consumer satisfaction for quality and

dissonance is prevented in this category of goods also.


is significant at .05 level. The result shows that the quality of international brands of

frozen foods is so good that advertisements of Indian foods do not have any effect on

consumers even if the advertisements are there. So, in that case also advertisements

cannot form cognitive dissonance.


is significant at .05 level. The results show that consumers don‟t like sampling

different brands for the sake of comparison only.


is significant at .05 level. It shows that even if consumers see the advertisement of

new brand, they refer to friends/family before making purchasing decision.

Hence, Hypothesis H3b is accepted that the advertisements cannot form cognitive

dissonance among consumers about a product especially when the quality of the

product they are using is so high like in case of branded shoes or health foods and

frozen foods.

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4 Relationship of advertisements and spontaneous/non-spontaneous

purchase decision of consumers.

Consumers may be very careful with the amount of money that they spend on any

given day. They may also however, make the occasional impulse purchase. The intent

behind advertising is to persuade consumers to purchase the product, but does the

consumer respond to all communications sent by the advertisers? Advertisers use

different types of appeals and demonstrations to attract and retain customers. Another

dimension is whether the consumers considered the purchase to have been “spur of

the moment.”

A number of researchers have made important contributions to our understanding of

impulse purchasing behaviour (Rook and Hoch 1985; Rook 1987; Rook and Gardner

1993; Rook and Fisher 1987; Puri 1996; Weun and Beatty 1998; Beatty and Ferrell

1998; Hausman 200016

). Stern (1962)17

identified four distinct types of impulse

purchasing: planned, pure, reminder, and suggestion. Our understanding of impulse

purchasing was enhanced when

Rook and Hoch (1985)18

offered a psychological model of consumer impulse buying

episodes. Beatty and Ferrell (1998)19

extended research by exploring the precursors of

impulse purchasing and examining how in-store browsing, for recreational and

informational purposes, influences impulse purchasing behaviour. Recently, Hausman

(2000) established that impulse buying is a common method of product selection, in

part, because it provides hedonic rewards. Though, this research has made significant

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contributions to our understanding of impulse purchasing, researchers have not come

to a consensus on the conceptualization of impulse purchasing. Thus, unresolved

issues exist in the literature preventing a clear understanding and resulting in

inconsistent operationalisation of the construct.

To examine the relationship of advertisement and spontaneous/non-spontaneous

purchase decision of consumers the objective was divided in two parts. S4.1, S4.2,

S4.3, S4.8, S4.9, S4.11, S4.12 and S4.13 were selected to examine the spontaneous

purchase decision of consumers Further, S4.4, S4.5, S4.6, S4.7, and S4.10, were

selected to analyse non-spontaneous purchase decision of consumers. The obtained

data were analysed by applying descriptive statistics i.e. mean and SD. The responses

were recorded on a 5- point Likert scale where „1‟ means strongly disagree and „5‟

means strongly agree. So if a response is greater than 3 that would imply either agree

or strongly agree with a particular statement. In order to find out whether there is

relationship between advertisements and spontaneous/non-spontaneous purchase

decision of consumers‟ one tailed t-test was applied. For this, the following

hypothesis has been developed:

H4a: Advertisements result in spontaneous purchase decisions if sample mean is

greater than 3

To examine this hypothesis, mean, SD and t-values has been has been calculated for

all the statements which are selected for spontaneous. Purchase decision of

consumers.

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Table-4.4a

Advertisements and Spontaneous Purchase Decisions

Spontaneous

Purchase decision Mean SD t-value

1 (S4.1) 3.31 1.05 7.28*

2 (S4.2) 3.40 1.05 9.56*

3 (S4.3) 3.66 0.97 16.77*

4 (S4.8) 3.58 1.02 14.31*

5 (S4.9) 3.45 0.98 11.44*

6 (S4.11) 3.25 1.17 5.42*

7 (S4.12) 3.23 1.21 4.80*

8 (S4.13) 3.60 1.02 14.53*


Table-4.4a presented the mean and SD and t-value of the observed variable.

The mean and SD for S 4.1 is 3.31 and 1.05 respectively. The t-value is 7.28 which is

significant at .05 level. It shows that when consumers come in contact of an

advertisement, they get excited and immediately buy something new.

The mean and SD for S 4.2 is 3.40 and 1.05 respectively. The t-value is 9.56 which is

significant at .05 level. It is depicted from the results that the consumers who don‟t do

planned shopping, they spontaneously decide to purchase looking around an

advertisement in a store.

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The mean and SD for S 4.3 is 3.66 and 0.97 respectively. The t-value is16.77 which is

significant at .05 level. It shows that the consumers who never make a list for

shopping they spontaneously shop for the products on seeing an advertisement.


significant at .05 level. It is depicted from results that consumers, who shop in order

to reduce stress and to feel better by shopping, always keep an eye on advertisements.


significant at .05 level. It is depicted from results that the consumers who feel

pleasure in shopping itself, they make their purchase decision impulsively after

watching an advertisement.


significant at .05 level. It shows that consumers generally buy things without thinking

rationally when they see some celebrity using them in an advertisement.


significant at .05 level. It shows that consumers purchase trendy products promoted in

an advertisement even though they are not of much use for them. So, in case of trendy

products the purchase decision are spontaneous and consumers follow their impulse.


is significant at .05 level. The result shows that advertising often persuades people to

buy things that they really don't require in life.

Hence, Hypothesis H4a is accepted as there is a relationship between advertisement

and impulsive purchase decision of consumers.

H4b: Advertisements result in non-spontaneous purchase decision if sample mean is

greater than 3

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Table-4.4b

Advertisements and Non-Spontaneous Purchase Decisions

Non-spontaneous

Purchase decision Mean SD t-value

1 (S4.4) 3.71 0.85 20.62*

2 (S4.5) 3.78 0.89 21.86*

3 (S4.6) 3.98 0.83 29.49*

4 (S4.7) 3.76 1.00 18.92*

5 (S4.10) 3.51 0.96 13.21*


The results of Table-4.4b show mean and SD for S4.4 is 3.71 and 0.85 respectively.

The t-value is 20.62 which is significant at .05 level. The results show that those

consumers who always take time to consider and weigh all aspects, including price

before making a purchase don‟t go for impulsive purchase.


significant at .05 level. The result shows when consumers are to weigh the economic

conditions also, don‟t follow the advertisements and they don‟t make impulsive

decision while shopping.


significant at .05 level. The results show that those consumers who always buy goods

that are useful and are of reasonable price can not be persuaded by advertisements to

make impulsive purchases.

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The mean and SD for S4.7 is 3.76 and 1.00 respectively. The t-value is 18.92 it is

significant at .05 level. It may be inferred that the consumers who buy those goods

which are worth buying don‟t buy impulsively even if advertisements are too good.

The mean and SD for S4.10 is 3.51 and 0.96 respectively. The t-value is 13.21it is

significant at .05 level. The results shown in the above table reveal that there is no

effect on the people who don‟t buy things only on looking at an advertisement in the

store.

Hence, Hypothesis H4b is accepted and therefore there is a no relationship between

advertisement and impulsive purchase decision of consumers when the question is

regarding quality or when the consumer weighs economic conditions also

5 Role of advertisements in influencing the purchasing decisions of

children as perceived by parents.

No one approach is far-reaching enough to capture the true nature of a child‟s

understanding of television advertisements. However, because the majority of

children continue to grow up with the television set on for most of the day, they are

processing the information being sent to them through advertisements. Today‟s

cultural focus on the commercialization of goods and the proliferation of a consumer-

based lifestyle means that children cannot avoid the messages being sent to them via

television.

Children can develop into responsible and informed consumers if their cognitive

interpretation of television advertisements is guided through their interactions.

Therefore, parents should interact with their children while they watch television,

instead of turning on the television set and leaving the room. Parents should model

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consumer behaviours and discuss the reality of television advertisements with their

children.

Berey and Pollay (1968)20

were the first to understand the role of children. They

measured the assertiveness of the child (in favour of a brand preferred by the child)

and the child-centeredness of the mother in the case of purchase of a brand of

breakfast cereal. They found that high child-centered mothers purchased the child‟s

favourite brand less frequently, implying that when a mother is child centered, she

would purchase a brand that is good for the child and not necessarily one that is

preferred by the child. Berey and Pollay also found that the assertiveness of the child

enhanced the recall of the child‟s favourite brand among mothers. Examining shifts in

such influence across age, Ward and Wackman (1972)21

found that attempts by

children at influencing purchase were negatively related to the age of the child;

however the tendency of mothers to yield to such influence rose with the age of the

child but varied across product categories. Mehrotra and Torges (1977)22

and

Williams and Veeck (1998)23

suggested that no particular attitude or set of attitudes

uniquely determines for all products whether a mother would be influenced by her

child or not. Child-centered mothers were more likely to be influenced by their

children and family-oriented mothers or women with close knit families were more

sensitive to children’s influence. Mothers co-viewing television programmes with

their children were more likely to yield to children’s influencing attempt for

products advertised on those shows.

To analyse this objective firstly parents i.e. respondents were asked whether the

exposure to advertisements has resulted in increasing trend of unreasoned shopping

among children. Then the results to this were related with parent‟s perception about

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role of their children in shopping was recorded. This response of the trend in

unreasoned shopping was recorded on the scale „yes‟ and „no‟ and the responses were

measured on the statements 5.7 to 5.12. The statements are related to the parent‟s

perception that whether they respect their children expertise and preferences on

products and brands. Whether they take opinion of their children while shopping?

This was recorded on Likert scale of 1 to 5 where „1‟ meant strongly disagree „5‟

means strongly agree. So the prepared hypothesis was:

H5a Parents perception about role of children in purchasing decision is different with

respect to trend in unseasoned shopping.

Table-4.5a

Parents Perception about Children’s Purchasing Decisions

Regarding Unseasoned Shopping.

Yes No

t-value

Mean SD Mean SD

1 (S5.7) 3.29 1.14 3.27 1.26 0.21

2 (S5.8) 3.75 0.83 3.67 0.87 1.04

3 (S5.9) 3.65 0.80 3.55 0.82 1.29

4 (S5.10) 3.69 0.92 3.51 1.05 1.91

5 (S5.11) 3.77 0.94 3.59 1.05 1.91

6 (S5.12) 3.44 1.01 3.19 1.09 2.46*

* Significant at 5% significance level

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To evaluate whether there is significant difference among parents perception that

advertisements has increased the trend of unseasoned shopping among children, 2

tailed t-test was applied at 5% significance level.

The results of Table-4.5a for S5.7, S5.8, S5.9, S5.10, and S5.11 show that there is

insignificant difference between two groups of parents who agree and who disagree to

the fact that advertisements have increased the trend of unseasoned shopping among

children. However, for S5.7 there is slight difference in mean values show that a few

parents agree that their children immediately want that product which is shown in

advertisements some don‟t agree upon this point.

However, as from the result mean values of S5.8 shows that parents respect their

child opinion. Children can give their suggestion in purchasing decisions.

The mean value of S5.9 shows that the parents consider advertisements are

influencing their children behaviour towards unseasoned shopping and they agree to

respect the expertise over products while making purchase decision.

The mean value S5.10 shows that parents care about the preferences of their children

in purchasing decision. However we may infer from the mean value of S5.11that

parents consider the decision of their children while making family purchase.

The results of Table-4.5a for S5.12 show that there is significant difference between

two groups of parents who agree and who disagree to the fact that advertisements

have increased the trend of unseasoned shopping among children. Parents are of

opinion that their children are mature enough mature and they can take their own

purchase decision.

To analyse this objective parents were subject to the question asking how frequently

they spend time with their children in watching TV. Three types of responses have

155

been taken i.e. all the time, sometime and never. On the basis of these responses

parents‟ perception about impact of advertisements on children was measured on the

statements 5.13 to 5.19. These responses were then related with parent‟s opinion as to

the advertisements influence on the children in terms of inducing materialism in them;

their being comfortable with portrayal of women in advertisements related to men‟s

stuff; harmfulness of some of the advertised products for children. For this the

following hypothesis has been developed:

H5b Parents perception about impact of advertisements on children differs with

respect to time spent in watching TV with children.

Table-4.5b

Parents Perception about Impact of Advertisements on Children

Mean values

F- value

All the times Some times Never

1 (S5.13) 3.15 3.53 3.77 12.57

2 (S5.14) 3.52 3.72 3.73 3.04

3 (S5.15) 3.49 3.68 3.82 4.11

4 (S5.16) 3.49 3.35 3.57 1.71*

5 (S5.17) 3.39 3.53 2.59 18.95

6 (S5.18) 3.59 3.58 2.96 7.58

7 (S5.19) 3.27 3.20 2.88 2.64*

*Insignificant at 5% significance

156

In order to find out Parents perception one way ANOVA has been applied to evaluate

the hypothesis.

The results from Table-4.5b show a significant difference amongst three groups of

parents as depicted in F value that different groups of parents have different response

towards role of advertisements in inducing materialism amongst children. It was

found that parents who never watch TV with their children agree more to S5.13 and

they don‟t consider advertisements to be fro inducing up materialism and arrogance in

children as compared to parents who spend all the time or sometime with their

children.

The results of above table show that F value = 3.04 found to be slightly significant at

5% Significance level for S5.14. This implies that parents who never watch TV and

sometime watch TV with their children agree to S5.14 that they are comfortable with

the advertisements of men‟s stuff in which portrayal of women is there, as compared

to parents who spend all the time with their children, while watching TV.

Further, the results of Table-4.5b show a significant difference among three groups of

parents as depicted in F value. So, different groups of parents have different responses

towards the contribution of advertisements in bringing change in the role of women

from a subordinate to a decision maker in family purchase decision making process. It

was found that parents who never watch TV with their children strongly agree to

S5.15and they believe that advertisements are resulting in bringing this type of change

157

in the role of women as compared to the parents who spend all the time or sometime

with their children.

The results from Table-4.5b show insignificant difference among three groups of

parents as depicted in F value regarding their opinion as to the fact that

advertisements depict products as better than they really are. It was found that parents

who never watch TV with their children agree more to S5.16 as compared to the

parents who spend all the time or sometime with their children.

The results of above table further show that F value = 18.95 found to be slightly

significant at 5% significance level for S5.17. This implies that parents who

sometimes watch TV agree to S5.17that advertisements do not always tell the truth

than the other two groups.

The results of Table-4.5b show a significant difference among three groups of parents

as depicted in F value that different groups of parents have different response towards

S5.18. It was found that parents who all the time and sometimes watch TV with their

children agree more to S5.18 that the purpose of advertising is to sell products only as

compared to parents who never spend time to watch TV with their children.

The results of above table regarding S5.19 show that F value = 2.64 found to be

insignificant at 5% Significance level. It was found that parents who all the time and

sometimes watch TV with their children agree to S5.19 that some of the advertised

products are not good for children, as compared to parents who never spend time for

watching TV with their children.

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6 Opinion about how different tools/methods of sales promotion influence

the purchase decisions of the consumer.

Sales promotion refers to short term incentives, which are designed to encourage the

buyers to make immediate purchase of a product or service. This includes all

promotional efforts other than advertising, personal selling and publicity used by a

company to boost its sales. Sales promotion activities include offering cash discounts,

sales contests, free gift offers, Rs. off and Coupons,

“A coupon is a promotional device that provides cent-offs savings to consumers upon

redeeming the coupon” Shimp and Samiee, S. (1993)24

. Coupons can be disseminated

to consumers through newspapers and magazines, direct mail and packages. Price-off

is a reduction in a brand‟s regular price. According to Blair and London (1981)25

, the

major reason for marketers to use the price-off reductions is that this type of deal

usually presents a readily apparent value to shoppers, especially when they have a

reference price point for the brand, therefore they can recognize the value of the

discount. Pride and Ferrel (1989) states that sales promotion methods fall into one of

two groups. Consumer sales promotion methods are directed toward consumers and

include coupons, contests, bonuses, vacations, gifts, tie-ins and free samples (Lamb et

al, 1992). Trade sales promotion methods focus wholesalers, retailers and

salespersons. Examples include sales contests, free merchandise, demonstrations,

point-of purchase, and display Anderson, (1986)26

; Pride and Ferrel, (1989). Blattberg

and Neslin, (1990)27

summarize the various definitions offered by several authors and

develop the following definition of sales promotion: “sales promotion is an action-

159

focused consumers the chance to win cash, merchandise or travel prizes. However,

there are some differences between the two practices. A contest is a promotion where

consumers compete for prizes or money on the basis of skills or ability. In a

sweepstakes, winners are determined purely by chance

The impact of different methods of sales promotion on spontaneous/non-spontaneous

behaviour of individual has been noted. Purchasing decision of the consumers has

been measured on scale of spontaneous/non-spontaneous purchase behaviour. The

objective tends to measure the relationship between sales promotion schemes and

spontaneous/non-spontaneous purchase behaviour. The four sales promotion schemes

were mentioned in the questionnaire i.e. Coupons, Free Gifts, Rs. off and Contests.

For this the following hypothesis has been developed:

H6 Relationship between spontaneous/non spontaneous purchase decision of

consumers and promotion schemes like (Coupons, Free Gifts, Rs. off, Contests).

To analyse this objective multiple regression has been implemented. To judge the

relationship between spontaneous/non spontaneous purchase decision of consumers

and promotion schemes i.e. Coupons, Free Gifts, Rs. off and Contests. The promotion

schemes have been taken as independent variable and spontaneous/non spontaneous

purchase decision has been taken as dependent variable. The regression analysis

provides an opportunity, with little ambiguity, to assess the importance of each of the

predictors to the overall relationship. But the more complicated and important goal

might be to investigate the relationship between dependent measure and non

predictors with the effect of other predictors statistically eliminated.

160

Table-4.6

Relationship between Spontaneous/Non Spontaneous Purchase

Decision of Consumers and Promotion Schemes

Spontaneous Non- spontaneous

Regression

coefficient t-value

Regression

coefficient t-value

Coupons 0.058 1.16 -0.085 -1.70

Free Gift -0.119 -1.77 0.136 2.03*

Rs. off 0.114 1.840 -0.049 -0.78

Contest -0.004 -0.091 0.020 0.41

*t-values at 5% significance level

As per this study if any company will provide different schemes to the consumers i.e.

coupons or Rs. off consumers will go for Rs. off as compared to coupons because

from the results shown in above table reveal that regression coefficient of Rs. off is

0.114 and for coupons is 0.058 and it is higher. After watching an advertisement

there is no spontaneous purchase decisions of the consumers for all the schemes as the

t-values i.e. -1.70 for coupons and -0.78 for Rs. off are insignificant at 5%

significance level.

Consumers don‟t enjoy buying a brand spontaneously that comes with a free gift.

They also assess the value of the free gift. Even the completion of a promotional gift

set cannot result in spontaneous purchase. Similar is the case with „buy one get one‟

promotion. Nobody enjoys buying a brand that offers a „buy-one-get-one-free‟

161

promotion. They don‟t tend to buy brands that come with free gift as compare to the

brands that do not make such offers. They think that the products which are available

in the market with free gift or with a contest are not of good quality.

Another result shows that the products which are available in the market with

contests, they don‟t return the money‟s worth. So, again such offers don‟t result in

spontaneous purchase of Rs. off schemes.

From the results it is also shown that the regression coefficients of Rs. Off schemes is

positive. It means that apart from saving money consumers enjoy Rs. Off promotional

scheme. But when consumers are concerned about low price, they are also concerned

about quality of product.

Out of the two schemes free gifts and contests, people will go for contest as compared

to free gift. From the above table it is evident that the t-value -.119 of free gift is much

more in negative side as compared to t-value -0.004 of contests. As the table shows

that the t-values are insignificant at 5% significance level.

If a company will provide four types of schemes to the consumers, they will go for

free gifts as compared to contests because the table shows that regression coefficient

0.136 of free gifts are higher as compared to regression coefficient 0.020 of contest.

After watching an advertisements there is relationship between non spontaneous

purchase decisions of the consumers and the free gift scheme as the t-value 2.03 is

significant at 5% significance level. But results show that there is no relationship

between non spontaneous purchase decision and other schemes like coupons, Rs. Off

and contests because t-values are insignificant at 5% level.

162

The results show that the t-values of free gift in of Table-4.6 is -1.77 for spontaneous

which is insignificant and it is 2.03 for non-spontaneous which is significant indicate

there is no relationship between spontaneous consumer behaviour and free gifts.

Consumers don‟t immediately go for shopping when they are exposed to

advertisements on different media.

The t-values for other schemes are insignificant. So there is no relationship between

non spontaneous consumer behaviour and other scheme like coupon, contests and low

price.

7 Impact of different media channels on customers’ perception about

deceptive advertisements.

One continuing manifestation of consumerism is the increase in legislative and

regulatory requirements for disclosure of product information. Such disclosures range

from nutrition labelling on foods to energy-efficiency indices on appliances. The

impact of this trend has been to complicate the act of purchase (i.e., adding new

dimensions of social and personal importance) and to raise a major public policy

question: To what extent will the consumer actually use and thereby benefit from this

information? Before it can have any tangible and direct impact on consumer choice

behaviour, information must be acquired, perceived, comprehended and, in many

cases, placed into memory and successfully retrieved at some later point in time.

Thus, disclosure may have little, if any, impact if consumers fail to become aware of

and acquire this information.

Deception is involved when due to advertising (a) a consumer perceives a claim

(being explicitly or implicitly made by the advertiser) differently from what it actually

163

is; (b) they buy the product under the influence of mistaken impression and then

suffer a loss as a consequence. Thus, either the claim itself could be false or at least

the impression being created is false.

In this objective an attempt was made to identify which media channel was perceived

as the major source of deceptive advertisements by the customers. Whether Internet,

TV, Newspaper or Radio. To anaylse this objective mean values of customers

perception was calculated for every respondent for the statement 7.1 to 7.4 and then

these mean values has been related with the responses given by the respondents

regarding Internet, TV, Newspaper and Radio. Haefner (1972)28

focuses on consumer

judgments of the deceptiveness of the advertisement. Armstrong and Russ criticized

this approach as insufficient and logically deficient to detect the presence of

deception. Haefner, et al. (1974)29

examined what are the effects of the variables like

regular or reduced price, prominent or non prominent display of product in an

advertisement, frequent or infrequent advertising of the product and type of product

on price perception of advertised food items. A total of 226 interviews were

conducted as a basis for the research. The results of this study showed that the

respondents did not assume that advertised items were reduced in price. It was alleged

that ultimately the consumers learnt how to read an advertisement as a result of this

research. In this Study deception was unrelated to other factors, a point not previously

acknowledged in the literature. It was cleared that subjects are perfectly able to

evaluate an ad in terms of a deceptive dimension and the researcher suggest the term

“perceived deception” when examined from this perspective. An important limitation

164

of the study is that it required respondents to make a summary judgment of the

deceptiveness or non-deceptiveness of all advertisement. To analyse this objective

following hypothesis has been developed.

H7 Relationship between type of media i.e. TV, Internet, Newspaper, Radio and

deception communicated in advertisement.

To judge the impact of different types of media customers perception about deceptive

advertisements indicated in statements 7.1 to 7.4 was taken as dependent variable and

the type of media channels as independent variable. The mean value of customers‟

perception about deceptive advertisements was measured for these four statements to

judge which media channel out of TV, Internet, Newspaper and Radio is major source

of deceptive advertisements. For this multiple regression has been implemented.

Table-4.7

Relationship Between Type of Media and Deception

Communicated in Advertisement.

Regression

coefficient t-value

Internet .044 1.087

TV .075 1.751

Newspaper -.085 -2.003*

Radio -.033 -0.778

*t-values at 5% significance level

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According to the results shown in the table the t-values 1.751, -0.778 and1.087 of TV,

Radio and Internet respectively are insignificant It depicts the there is no relationship

between deceptive advertisement on these media and their reliability as well.

Advertisements shown on TV and Internet are generally deceptive, misleading,

exaggerated and false as compared to the advertisements communicated through

Radio or in Newspaper. Further, the products shown on TV and internet don‟t include

what advertisements claim. But such is not the case with advertisements aired on

Radio or published in Newspaper.

The table shows that t-value -2.003 of Newspaper is significant at 5% significance

level. It depicts the relationship between deceptive advertisement on Newspaper and

their reliability as well. So, it may be inferred that Newspapers have no contents of

deception in advertisements.

8 Perception of the Consumer about Price & Quality of the product as

shown in advertisements.

Though consumer perception of price, quality, and value are considered pivotal

determinants of shopping behaviour and product choice (Bishop 198430

; Doyle

198431

; Sawyer and Dickson 198432

, Schlechter 198433

), research on these concepts

and their linkages has provided few conclusive findings. The negative relationship is a

function of how advertising affects demand for each firm‟s product. Increase in

advertising have a first order effect on the potential demand for each firm. The more

consumers who have seen a firm‟s advertising, the higher the potential demand for

that firm. But advertising affects the composition as well as the extent of demand.

When advertising levels are low, the vast majority of demand comes from partially

166

informed consumers. That is, consumers who have seen one firm's advertising are

unlikely to have seen advertising from the other. Each firm is a de facto monopolist

for the majority of consumers informed about its product. As advertising levels

increase, however, a greater fraction of demand comes from consumers who are fully

informed. At high advertising levels, the majority of consumers have seen advertising

from both firms. In contrast to partially informed consumers, fully informed

consumers compare the attractiveness of each product (which is a function of each

product‟s location and price) and make decisions. As a result, the optimal price for

this group of consumers is different than the optimal price for consumers who are

partially informed. Research efforts have been criticized for inadequate definition and

conceptualization Zeithaml (1983)34

, Inconsistent measurement procedures Monroe

and Krishnan (1985)35

. One fundamental problem limiting work in the area involves

the meaning of the concept s: quality and value are indistinct and elusive constructs

that often are mistaken for imprecise adjectives like “goodness, or luxury, or

shininess, or weight” Crosby (1979)36

. Quality and value are not well differentiated

from each other and from similar constructs such as perceived worth and utility.

This objective tends to measures whether customers can perceive price and quality of

Product separately or not when exposed to advertisements which depict both the

attributes of products.

Two sample t-test was applied to examine whether individuals when exposed to

different advertisements showing price and quality of the product evaluate it on these

two attributes differently or considers them similar. For this the following hypothesis

has been developed:

167

H8 Customer perceives Price and quality of the product separately as shown in

advertisements.

Table-4.8

Customers’ Perception about Price and Quality of the

Product as Shown in Advertisements

Statements

Mean values

Statements

Mean values

Price Quality

8.1 3.71 8.6 3.62

8.2 3.64 8.8 3.58

8.3 3.26 8.12 3.81

8.4 3.79 8.13 3.78

8.5 3.62 8.14 3.62

8.7 3.40 8.15 3.55

8.9 3.44 8.17 3.69

8.10 3.75 8.19 3.31

8.11 3.43

8.16 3.52

8.18 3.64

t-value = 0.461 at 5% significance level

168

As t-value 0.461was found to be insignificant so it can be concluded that at 5%

significant level enough evidence was not found to accept the formulated hypothesis.

Thus, results suggest that individuals do not comprehend difference between price and

quality of the product while evaluating them through advertisements.

The results shows that the mean value of S8.1 is 3.71, so, the consumers are willing to

pay higher prices to buy better quality products. They do not compromise on the price

of product whether they are high or low. According to the results of S8.4 the

consumers are willing to pay higher prices for health product. They do not in a state to

compromise on the issue of their health. As from the results of S8.10, we can interpret

that at the time of shopping they compare the prices so that they get the best value of

money. The mean value of S8.18 is 3.64 states that consumers search different stores

to take the advantage of low prices. The result of S8.5 shows that the consumers are

aware about their time and they want to save it by paying higher prices.

As from the results of S8.13 we can infer that consumers have high standards and

expectations on the quality of health food and beverages. According to the results of

S8.14 and S8.12 the consumers spend enough time and they are very careful about the

quality of Apparels and accessories.

169

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