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DISSERTATION REPORT
ON
“ Effectiveness and Impact of Television Advertisements on
Indian Consumer Behaviour vis-à-vis Telecom Products”
SUBMITTED TO
MANAGEMENT DEVELOPMENT INSTITUTE, MURSHIDABAD
IN FULLFILMENT OF THE REQUIREMENTS FOR THE
AWARD OF
POST GRADUATE PROGRAM IN MANAGEMENT
SUBMITTED BY:
(Siddhartha Arora)15 PGPM 2014-116
PGPM BATCH – 01
UNDER GUIDENCE OF:
Dr. Sunil Giri,
PGPM – CHAIRPERSON
MDI - MURSHIDABAD
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CERTIFICATE
This is to certify that Mr. Siddhartha Arora, Entry number 15 PGPM 2014-16, a student of
PGPM in Management Development Institute, Murshidabad, has carried out the Summer
Internship presented in this report titled „ Effectiveness and Impact of Television
Advertisements on Indian Consumer Behaviour vis-à-vis Telecom Products‟ upon fulfilment
of Post Graduate Program in Management for the batch 2014-16, under my guidance.
(Signature)
Dr. Sunil Giri
Date: 31st March 2016
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DECLARATION
I, Siddhartha Arora, hereby declare that the project work entitled “ Effectiveness and Impact
of Television Advertisements on Indian Consumer Behaviour vis-à-vis Telecom Products”
submitted towards the fulfilment of requirements for the award of Post Graduate Program inManagement is my original work and the dissertation has not formed the basis for award of
any degree, associate ship, fellowship or any similar title to the best of my knowledge.
Place: Murshidabad (Signature of Student)
Date: 31st March 2016 Siddhartha Arora
15 PGPM 2014-16
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ACKNOWLEDGEMENT
A dissertation project is a golden opportunity for learning and self-development. I consider
myself very fortunate to have so many wonderful people leading me through the completion
of this project. I would like to take this opportunity to convey my heartfelt thanks to Dr. Sunil
Giri (PGPM-Chairperson, MDI-M) & Dr. Pinku Paul (Faculty, MDI-M) , who despite their
exceedingly demanding schedules, took time out to hear, guide and mentor me throughout the
duration of the project.
Additionally, I am also thankful to all my friends for their co-operation and good wishes. Last
but not the least, I would like to convey my appreciation towards my beloved parents for their
constant inspiration and blessings without which this project work could not have been
completed.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Siddhartha Arora
PGPM 2014-2016
MDI Murshidabad
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TABLE OF CONTENTS Executive Summary ..................................................................................................................... 5
Chapter - 1 .................................................................................................................................. 6
1.1 Introduction ........................................................................................................................... 7
1.1.1. Analysis of Advertisement Strategies of Bharti Airtel Ltd ........................................... 8
1.1.2. Objectives of the Project ............................................................................................ 9
1.2. Literature Review ........................................................................................................... 10
Chapter -2 ................................................................................................................................. 11
2.1. Research Methodology ........................................................................................................ 12
2.1.1. Research Design ........................................................................................................... 12
2.1.2. Describing the Six Ws for Descriptive Research ............................................................. 12
2.1.3. Sample Selection .......................................................................................................... 13 2.1.4. Descriptive Summary: The Process Flow ....................................................................... 14
2.2. Demographic profiles of Respondents .................................................................................. 15
Chapter - 3 ................................................................................................................................ 16
3.1. Findings and Interpretation .................................................................................................. 17
3.1.1. Findings from Secondary Research ................................................................................ 19
3.2. Analysis ............................................................................................................................. 22
3.2.1. Qualitative Analysis ...................................................................................................... 22
3.2.2. Methodology – Word Associations ................................................................................ 22
3.3. Quantitative Analysis .......................................................................................................... 25
3.3.1. Factor Analysis ............................................................................................................. 25
3.3.2. Factor Analysis ............................................................................................................. 29
3.3.3. Discriminant Analysis ................................................................................................... 32
Chapter - 4 ................................................................................................................................ 35
4.1. Results and Conclusion ........................................................................................................ 36
4.2. Limitations of the Project ..................................................................................................... 37
4.3. Future Scope of Study ......................................................................................................... 37
4.4. Learning from the Final Research Project ............................................................................. 38
References ................................................................................................................................. 39
Annexure – 1 – [Questionnaire] .................................................................................................. 40
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EXECUTIVE SUMMARY
The Project aims at finding the impact of advertisements on the buying behaviour of the
consumers in the telecom business with special reference to Bharti Airtel Ltd.. The research
has been done with 100 respondents as the sample size for the quantitative analysis while for
the qualitative analysis, insights from 15 respondents were taken. The TV commercials are
found to be more memorable and influencing as compared to other forms of advertisements.
However, this study also revealed that social media advertisements are more influential thesedays among the new generation. It could be observed from the research that the effectiveness
of Airtel‟s advertisement in terms of communication and reach is moderate, and even if the
reach is more, the ads are not much recallable. This study is partly exploratory and partly
descriptive. Use of methods such as word associations and survey has been done as a data
collection technique. Finally, the respondents were classified into categories who had high
impact from TV commercials and those who had medium or low impact on the buying
behaviour. Factor analysis was also performed to reduce the dimensions and find the most
important features in a TV commercial that attracts the customers. The entire study revolves
around advertisements of the famous telecom Bharti Airtel Ltd. in India. However, as a
global view Bharti Airtel Ltd. has geographically different and exhaustive advertisement
strategies and taglines for customer attraction and retention.
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Chapter - 1
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1.1 Introduction
Project Title: Effectiveness Mapping and Impact Measurement of Advertisements onConsumer Behaviour.
Description: To identify the impact that TV advertisements have on the buying behaviour of
consumers for telecom products and mapping the effectiveness of these advertisements in
terms of communication and reach.
This Research project aims at measuring the impact of advertisements of telecom products onthe consumer buying behaviour with special reference to Bharti Airtel Ltd. which is atelecom major in India & Africa. Advertising is a marketing concept which aims to influencethe buying behaviour of customers. Whereas consumer behaviour is the process and activity
by which people select, purchase, evaluate and consume the product or service to satisfy theneed or want. In olden times marketers used different signs and symbols to market their
products and also to create awareness for the customers.
With the advancement and technology development now organizations focus to use print andelectronic media excessively. Use of different marketing promotional strategies has beenidentified as an effective tool of creating awareness among the consumer population. Amongthem is popular celebrity attachment with the particular brand. In developing countries wheremajority of the population live in remote areas; the effects of Television (TV) advertisementare very high. In these areas TV advertisement enhances the satisfaction level of products.
In order to study the influence of Advertisement in Consumer Brand Preference, three mainvariables are considered with appropriate dimensions. They are
Information Communication Comprehension
The strategic components of a TV advertisement are: Product: The aim of advertisement is to increase the demand for the new product Consumer: Differentiation between the target audience and the target market segment Idea of advertisement: The idea can be either fundamental or emotional.
a. Fundamental Advertisement: Personal benefit of TV advertisement
b. Emotional Advertisement: Stimulating the emotion of the targeted audience.
Bharti Airtel Ltd., uses emotional TV advertisements while for other forms of media for
advertising they use a mix of the emotional and fundamental advertisements. However, for
this study we have taken a reference of TV advertisement that creates an emotional appeal
thereby stating the low cost and high quality of its products and services and the availability.
The need to carry on with this project is to gain an idea that what in a TV advertisement
makes an impact on the consumer‟s mind to try a product and become a regular customer for
the product and finally an apostle or a brand loyalist.
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1.1.1. Analysis of Advertisement Strategies of Bharti Airtel Ltd.
Airtel maintains an extensive advertising campaign. In addition to the usual media including
television, radio, and newspaper ads, the company makes significant use of billboards and
signage, sponsors sporting events ranging from Regional Sports League to the International
Cricket Matches and Asian Games, and makes coolers of red drink with their logo availablefor local events of all kinds. However, television ads remain the primary form of
advertisement.
Airtel has used 23 different slogans to advertise in India & Africa, as well as a few other
slogans for select countries and regions. Airtel claim‟s itself to have been born free, a force
unleashed into the market with a relentless and unwavering determination to succeed. A
spirit charged with energy, creativity and a team driven “to seize the day” with an ambition
to become the most admired telecom service provider globally. Airtel, in just ten years of
operations, rose to the pinnacle of achievement and continues to lead.
As India's leading telecommunications company, Airtel brand has played the role of a majorcatalyst in India's reforms, contributing to its economic resurgence. Today Airtel touch
people's lives with our Mobile services, Telemedia services, to connecting India's leading
1000+ corporates. Airtel also connect Indians living in USA, UK and Canada with their
callhome service.
Bharti Airtel Limited (Bharti Airtel) is one of India‟s most popular providers of integrated
telecommunication services and is based in India and headquartered in New Delhi. Basically,
the company is tasked with the work of operating telecommunication services in the larger
Indian subcontinent. The company‟s business services include mobile services, enterprise
services and Telemedia services. The mobile services comprise of fixed wireless services
and mobile services which use GSM network technology across major telecommunication
circles in the country.
With a Pan-India presence, Airtel an established player in providing 3G services is now
planning aggressively to roll out its 4G services in a phased manner. These services are now
available in metros and big cities like Bangalore and Mumbai. The company also provides
world class landline telephone and broadband services and the enterprise unit across 95 cities
in India. Some of Bharti Airtel competitors include the following:
Idea
Tata Docomo. Reliance Communications Limited
Bharat Sanchar Nigam Ltd.
Vodafone (strongest competitor)
Products in the marketing mix of AirtelThe company provides a wide array of products and services. In order to retain the maximum
number of customers, Airtel has tried to provide as many products and services as possible in
order to keep the customers. The following is a list of its products:
Airtel Pre-paid services
Blackberry Wireless Handheld
Airtel Post-paid services
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Value added services like instant balance inquiry, caller line identification, 24 hour
recharge facility, multimedia messaging service, call wait & call Hold, Caller divert,
Airtel Live portal
SMS based information services
Voice mail services
Hello tunes, Ring tones, Ringtones and hello tunes offers
Easy post-pay bill payment solutions
Enterprise Solutions
Place in the marketing mix of Airtel Airtel‟s penetration in India is quite impressive because the services and networks can be
found even in India‟s remotest regions. Currently, gross subscriber base has pass the 200
million mark while the total wireless subscriber base for CDMA, GSM and WLL is about
162 million. Clearly, the customer base of Airtel is strong in India. It is also worth
mentioning that millions of the network‟s lines are added per year. Airtel enjoys a well
distributed network of distributors including even businesses like groceries and chemistoutlets. One of the things that have made Bharti Airtel a force to reckon in
telecommunication industry in India and Africa is that it has the strategy of making the first
moves and emerging as a winner. It has managed to buy Kuwait‟s Zain and Tata steel in the
past, making it a top 5 wireless carrier in the world by subscription.
Wider distribution network as compared to competitors
Network is widespread bringing many customers daily to Airtel
Fourth largest mobile operator in the world with presence in 20 countries
Promotion in the Marketing mix of AirtelAirtel engages in aggressive marketing strategy ranging from traditional print media to social
network marketing. However, the company‟s recent rebranding efforts bombed in the market
and were not received positively. The company also engages in large scale TV and print
advertising. The company frequently uses big celebrities who endorse the services. The
company also managed to create its signature tune from Oscar winning musician
A.R.Rahman which has become one of the most downloaded tunes in India.
It is also interesting to note that even such seemingly redundant activities like providing
wallpapers and screensavers to computer users has proved a very effective marketing
strategy. The company also offers special discounts and offers to its subscribers.
Apart from that Airtel has been hiring several figures from Bollywood right from thelegendary Amitabh Bachhan to Vidya Balan as their brand ambassadors. The God of cricket,
Sachin Tendulkar too has been a part of their advertisement campaigns too.
The advantage of Airtel is that it goes regional with its advertisement efforts.
Some salient points about the promotions of Airtel are:
Uses ATL and BTL activities
Makes an effort to go regional
Recent rebranding effort has failed in the market
Has good word of mouth and a good brand image second only to Vodafone.
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1.1.2. Objectives of the Project
Determine the Impact of TV advertisements on the consumer behaviour for telecoms
with special reference to Bharti Airtel Ltd.
Determine the factors in an advertisement responsible for Brand recall.
Study the effectiveness of existing TV advertisements of Bharti Airtel Ltd. in terms
of communication and reach and how much impact has been on the consumers in
terms of recall.
Determine the factors responsible for influencing the try out a new products and
services.
Mapping customer percept of Bharti Airtel Ltd. through Advertisement Recall by
customers and classifying the respondents into categories who are highly impacted
by advertisements and who have medium or no impact.
Management Decision Problem: Should there be investment in Television commercialsfor Telecom Cos. to increase reach and sales?
Marketing Research Problem: To determine a consumer ‟s preferences for features in a
TV commercial which would influence his / her to buy a product
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1.2. Literature Review
A quantitative data collection of 300 questionnaires was used in the UK to assess consumer
behaviour to Vodafone in the paper “The Motivational Reasons behind Consumer Choice
for Vodafone Products & Services” by Sophie Alice Burge. The findings concluded thatmost respondents visit Telecom Stores with friends. Consumer motivations to Vodafone
shops are most influenced by three factors: past experience/ familiarity; convenience of
location/travel; and friends and family. With a friendly staff, high quality of products and
services, a good atmosphere and a good reputation are the most important aspects for branded
telecom shops.
“The Effects Of Outdoor Advertisements On Telephony Consumers” - Gulmez
Mustafa, Karaca Sukran Kitapci Olgun. The results of the study indicate that outdoor
advertisements which create different ideas, which are effective in informing and persuading
people and which are sensitive to the environment can be viewed positively by consumers. In particular, amongst consumers with higher educational and income levels, outdoor
advertisements are becoming striking and their visibility is increasing.
One of the study examines the relationships between TV advertising and patterns of products
and services choice among children “TV Commercials and Choice of Products and
services among Telecom Consumers in Sabah, South Malaysia” - Andreas Totu, Oswald
A. Igau, Murnizam Halik. This study examines the relationships between television (TV)
advertising and patterns of products and services choice among children. This relationship is
crucial in understanding the intricate interplay among several interrelated variables such as
TV viewing, preference for certain products and services. Specifically, the study investigates
the degree of recognition of adverts and patterns of products and services choice among lean,
overweight and obese children. This study uses an experimental test, but the assessment of
the effects of advertisements was undertaken through questionnaires. There were 50
participants involved in the experiment.
“Internet-products and services advertising in social media. A case study on Facebookin Egypt” - Hazem Rasheed Gaber. The purpose of this paper is to explore the factors thataffect young Egyptian consumers' attitudes towards telecom-products and servicesadvertising in Facebook which is considered the most widely used social media network. 4
focus groups were conducted with young consumers from 2 Egyptian cities. Content analysiswas applied for the Egyptian telecom-products and services Facebook fan pages with the aidof the NVivo software. The findings of this exploratory study have shown that youngconsumers are accepting the idea of telecom products and services advertising in Facebook.Moreover, the research provides a framework for the factors that lead to consumers'engagement with the advertisements on Facebook. With the increase in the popularity ofsocial media websites among the young generation, telecom-products and services marketersfind it a more effective medium for advertising for their companies among that segment. Theresearch provides insights for marketers to make their advertisements more effective on
Facebook. The participants in the focus groups were young consumers in Egypt. It would beuseful to expand the sample and conduct the research in other developing and developed
countries with more consumers from other age groups.
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Chapter -2
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2.1. Research Methodology
2.1.1. Research Design
The research design is partly exploratory and partly descriptive. This method was used to getan in depth analysis of the features in an advertisements that were most persuasive and
influential for the customers in terms of telecoms with special reference to Bharti Airtel Ltd..
It also included studying the perceptions of the people in regard to TV advertisements of
Bharti Airtel Ltd..
Method of Qualitative Research – Word Associations
Method of Quantitative Research - Survey
The research process included both qualitative and quantitative research for understanding
the consumer behaviour. The qualitative research was done through “Word Associations”method which was in a group of 15 people. This was done to understand the features
important for consumers for making a decision for buying. These factors and variables were
used in the quantitative research to build a survey. The survey was an online one through the
use of mailing the questionnaires.
2.1.2. Describing the Six Ws for Descriptive Research
Who – Who should be asked for the advertisements impact and understanding their
effectiveness?
The selection of respondents is done in line with the Target population of Bharti Airtel Ltd..Since Bharti Airtel Ltd. is the reference for telecom products, its target population wasunder scrutiny. Bharti Airtel Ltd. targets a wide range of customers including –
Kids 15-20 yrs old;
Families: Weekend outings or meals;
Teens and Students;
Sports Fans;
Coffee goers – Airtel Dongle;
Working adults;
Travelling and visiting tourists 24hr access SIM Cards.
What- What information should be obtained from the respondents?
The respondents are asked about their usage frequency of telecom products and services, thedifferent telecom products and services they used, how many ads they can recall for Bharti AirtelLtd. and certain questions on the types of advertisements and the features that they would preferin them. This would be helpful to identify features of advertisements which impact the consumersand so will help in building an effective TV commercial.
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When- When the information has to be taken?
The information was taken with online surveying through floating of google forms withinthe timeline specified for data collection.
Where- Where were the customers contacted?
The customers were contacted in the institute through face to face interactions for thequalitative data analysis and for the quantitative analysis, the respondents were surveyedthrough an online questionnaire.
Why- Why are we tapping the respondents for obtaining these details?
Only the customers or respondents can help us measure the effectiveness of an advertisementthrough communication and reach to the customers. The more the number of advertisementsrespondents can recall the more is the memorability of that advertisement. Hence, thecustomers are tapped to measure the advertisement effectiveness.
Way- The way is through partly exploratory and partly descriptive research process.
2.1.3. Sample Selection
Population: The population for this research study the set of all customers of Bharti
Airtel Ltd. India which include all the target customers of Bharti Airtel Ltd..
Sampling Frame: Sampling frame is the record of students of a post graduateinstitute.
Sampling Unit: The customers were taken from Murshidabad region with specific
focus on Jangipur. Hence, only the Bengal-based advertisements of Bharti Airtel Ltd. have been into scrutiny.
Sample Size: The sample size was 100 for the respondents.
Sampling Method: Convenience Sampling was used as the sampling method.
Data collection instrument: Questionnaire [Both online and offline]
Data analysis tool: IBM SPSS
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2.1.4. Descriptive Summary: The Process Flow
• Step 1 – Problem Definition
• Step 2 – Secondary Research and Literature Review
Phase 1
[September]
Phase 2
[October- November]
Phase 3
[December-Januaru]
• Step 3 – Analysis of Market Players
• Step 4 – Questionnaire Design and Sample Selection
• Step 5 - Data Collection and Compilation
• Step 6 – Analysis and Interpretation of Data
• Step 7 – Report Preparation and Presentation
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2.2. Demographic profiles of Respondents
The following graphs show the demographic profiles of the respondents. Bharti Airtel Ltd.
also uses segmentation for its customers on the basis of income, age and occupation i.e. the
overall demographic segmentation of customers.
Age Group of Respondents
50 46
40
30 20
11 9 5 Total 10 0
15 - 22 23 - 30 31 - 40 41 and years years years above
The respondents were majorly from the age band of 23-30 years.
Income Group of Respondents
10 0 - 3 lacs
8 3 - 6 lacs 6 - 9 lacs
8 45 9 lacs and above
The respondents were majorly from the income group of 0-3 lacs per annum and most of therespondents were students.
Occupation Category of
Respondents
40 37
30 28
20 Total
10 6
0
Salaried Self Student Employed
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Chapter - 3
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3.1. Findings and Interpretation
The summary of data obtained from the respondents is as follows.
Feature of a TV Commercial that invokes
interest about Telecoms
Audience appropriate
humour
23.29% 23.29%
Build an emotional
connection Character dialogue to tell a story
8.22% 10.96% Relatable characters and situations
12.33% Simple and upbeat storyline 21.92% Taglines and Jingles
The above data representation shows that 23.29% of the respondents believe that audience
appropriate humour is one of the features of an advertisement that invokes interest in them
regarding a product or a brand. The other set of 23.29% of the respondents find Taglines and
jingles to be of interest and memorable to them in a TV advertisement. The next most
important feature of a television advertisement is character dialogue which tells a story.
Most influential Advertisement Types
28.77%
Billboards
Newspaper/Magazine/Pa 15.07% mphlets
38.36% 16.44% Radio Commercials
Social Media 1.37% Advertisements
TV Commercials
The above chart shows that most influential advertisement type for telecom products and
services telecom players are social media advertisements with 38.365 of respondents
agreeing to this fact. While the next best advertisement type that creates an influence over the
consumer is the use of TV commercials. Newspapers, magazines, pamphlets and billboards
being other type of advertisements
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Frequency of usage of products and services
35
30
25
20
15 Total
10
5
0 0-2 times 3-4 times 4-6 times More than 6 times
The above chart shows the frequency of visit to telecom products and services telecom
players in a month by the respondents who fall in four age groups since telecoms usually
target a wide range of customers on the basis of their demographic profiles. However, it can
be observed that the most frequent users are those who are young.
Recall through Advertisements
80.00% 70.00% 70.42%
60.00%
50.00% 40.00%
Total 30.00%
20.00% 22.54%
10.00% 4.23% 2.82% 0.00%
0 to 2 3 to 5 6 to 8 Above 8
The above chart shows the number of television commercials that can be recalled by the
respondents. Mostly, the respondents could recall advertisements in the range of 0 to 2. This
is an indication that not all ads of Bharti Airtel Ltd. are memorable and could be recalled by
the respondents. Thus, an insight can be taken from this data that some investments or
changes need to be made in the television advertising for Bharti Airtel Ltd..
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3.1.1. Findings from Secondary Research
Airtel has struggled with same-store sales declines since early last year (2015) and has been
criticized for its bloated VAS Rates. The user base of AIRCEL has expanded not only in part
of Southern India but also as far as the Eastern and North-Eastern belts, which has increased by 70% since 2007. The company has recently tried to lure consumers with even more items,
including Pay-Per-Kb, 4G Internet, and myFamily Plans. A NASSCOM survey found that
roughly 42% of Airtel users reported trying one Airtel VAS in the time frame between Jan
‟16 to March„16. Consumers ranging in age from 25 to 44 had the highest tendency to order
the Airtel VASs, indicating the item's success in attracting a slightly younger demographic.
For 2 decades, Airtel has maintained a broad advertising campaign. In addition to the media,
the company makes considerable use of signage and billboards, sporting events and coolers of
drinks with their logo for all kinds of events. The company has used twenty-three diverse
slogans in India & Africa for advertising. At the same time the company has few other
slogans for the selected states and regions.
In the case of Airtel advertising the texts used are effective. They have contributed in
attracting targeted clients to the company. The wordings are aesthetically pleasing and
successful at getting the consumers to buy the product. The phrase „Har Ek Friend Zaroori
Hota Hai‟ which is used in one the advertisements, indicates a piece of advertising that is
particularly striking.
According to Cross “propagandas is simply a means of persuasion”, which they have applied
that to their place because it is evidently an artistic expression, yet is trying to sell somethingto the consumers.(Cross,149) The company has had to face are numerous.
The company has learned from its previous mistakes, like going after the wrong target market
of adults instead of young adults. This however, resulted to a turn around strategy, which later
led to increase in sale and profits. Airtel has managed to implement strategies that satisfy the
changing need of the customer. The company, being an international telecom player within
the quick service telecom market, requires a very high level of promotional campaigns to
remain competitive. This has been so, since some of the most memorable commercials in
telecom products and services industry have emerged from this particular company.
The rhetoric has contributed to its world-wide expansion and in its listing on the public stock
markets. With the expansion of Airtel to a worldwide market, the company has become a
symbol of globalization. At the same time, it has acted as the spread of the Indian system of
business. Its prominence has also resulted to regular topics of public debates on
communication, privacy, business ethics and consumer responsibility. The company also
introduced a carefree style in accompaniment to the telecom basics. To accommodate the
recent trend of high quality 4G Internet and recognition of Internet VAS in general. This
level of achievement is an indication of effective advertising or else truthful rhetoric.
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The company also earns revenue as an investor in telecom tower infra, as an operator and
sub-lessee of telecom spectrum. The company‟s business model is slightly different from
other telecom- products and services companies. In addition, sub-leasing fees and marketing
fees are calculated as a proportion of sales.
Some suggest that advertisements affect user negatively especially young users. Lutz argues
that the manner in which advertisers modify the meaning of words is able to have a harmful
effect on languages and how it is used. The author believes that the relationship amid humans
and any form of culture can be complicated. (Lutz, 446) However there is no denial that there
is a relationship between behavior and advertising. On the other hand, it is not convincing on
the directness and similarity about the relationship between media and advertising.
Lutz continues to argue that advertisers use language to imply a great thing about products
and services without promising anything at all. With extensive skill, advertisers can create an
advertisement that makes us to believe that a particular product is better than it is withouthaving to lie about it.
According to Machesney, adverting must build a brand while speaking with one voice. They
develop economies in the creative process, while maximizing its local effectiveness and it
increases the company‟s speed of implementation. It is the key to determining success of the
organization. The ability to identify the key of an ad that contributes to its success leads to
maximization of the economy of scale.
Critics argue that commercialization of all fields of society, increases in consumption and
wastes resources; privatization of public space and the negative influence on the lifestyle is
due to overrated advertising. Advertising to some extent has contributed tremendously to
destroying non-material possessions.
Public service adverting is an adverting technique used in promoting goods and services. It is
crucial in forming, educating and motivating the public about non commercial issues like
conserving energy, deforestation and political ideology. It is an influential and educational
tool that is capable of motivating and reaching larger audiences.
Adverting justifies its existence when used in the public interest. It is too much a powerfultool to be used for commercial purposes only. Infomercials are televisions commercials with
a longer format; they are very useful in creating an impulse purchase, so that the moment the
consumer observes the presentation, it is followed by immediate purchase of the product
through the advertised toll free number. Infomercials describe, display and frequently
demonstrate products and their features.
They commonly have testimonials from industry professionals and consumers. According to
Williamson, press advertising is an influential means of advertising.
It describes advertising in printed medium such as newspapers, journals or magazines. This
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involves everything from media with a broad readership base. It allows private companies or
individuals to purchase a small targeted advertisement at a low fee to advertise their products
and services. Celebrity branding is another powerful form of advertising that mainly focuses
on using a celebrity popularity to gain recognition for the product.
Celebrities are frequently involved in advertising campaigns like televisions or print adverts
to advertise general or specific program. This can lead to great success if it is endorsed by
various companies, and practiced prudently. Online advertising is the most recent and
productive form of advertising. It reaches a massive audience at the same time being
affordable, as compared to other mediums. This is achieved by the use of World Wide Web to
express the purpose of delivering marketing messages to draw customers.
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The advertisements pictures were also shown to the respondents for them to write their
feelings about the ads, what attracted them the most, and whether they were able to recall the
entire advertisement.
The above TV advertisement uses emotional appeal along with the functional one to display
the low price and affordable services from Bharti Airtel Ltd..
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To test the strength of the associations, we tabulated the responses from all participants and
placed the mean of each association on the map above.
A mean of less than 0.5 showed a weak association
A mean between 0.5 and 0.8 shown a significant association
A mean of more than 0.8 showed a strong association
From word associations, we could gather the perceptions of people regarding telecoms and
specifically Bharti Airtel Ltd.. People were conscious about the growing health issues and
concerns about growing intake of telecom products and servicess. However, they were aware
about the campaigns by Bharti Airtel Ltd. like
Sponsoring national and international sports events (Olympics, World Cup, Champions
League etc)
Actively participating in local/communal events
Established the Hellenic World foundation for Children
Some features that were analysed from the qualitative analysis of respondents about TV
advertisements were:
Audience appropriate humour
Build an emotional connection
Character dialogue to tell a story
Relatable characters and situations
Simple and upbeat storyline
Taglines and Jingles
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3.3. Quantitative Analysis
3.3.1. Factor Analysis
Objective: Reducing the Dimensions and finding the most important factors in aTelevision advertisement that affect consumers
To summarize the underlying factors that are responsible for the influential effect of TV
commercials on the consumers buying behaviour for telecom players, factor analysis was
performed with 8 variables on a sample size of 75 customers with a Likert scale of 5. The
results and tables of factor analysis are as follows.
V1 Visual appeal and Engagement
V2 Advertisement Duration
V3 Conveying the intended message
V4 Convincing
V5 Better and more appealing than other types of advertisements
V6 Develop an emotional connect
V7 Memorable
V8 Characters are influencing
The correlation matrix gives us the correlation between two variables. It can be observed
from the matrix below that there is a high correlation between the variables V4 (Convincing
Capability of TV commercials) and V5 (Better and more appealing than other types of
advertisements) with a value of 0.614 following the second highest correlation among the
variables V2 (Ad Duration) and V4 (Convincing Capability of a TV Commercial) with a
value of 0.527.
Correlation Matrix
V1 V2 V3 V4 V5 V6 V7 V8
V1 1.000 .183 .363 .123 .035 .273 .441 -.091
V2 .183 1.000 .308 .527 .264 .313 .092 .193
V3 .363 .308 1.000 .475 .388 .231 .231 .224
Correlation
V4 .123 .527 .475 1.000 .614 .368 .222 .407
V5 .035 .264 .388 .614 1.000 .191 .434 .473
V6 .273 .313 .231 .368 .191 1.000 .237 .287
V7 .441 .092 .231 .222 .434 .237 1.000 .020
V8 -.091 .193 .224 .407 .473 .287 .020 1.000
Bartlett‟s test of sphericity can be used to test the null hypothesis that the variables areuncorrelated in the population; in other words, the population correlation matrix is an identitymatrix. The test statistic for sphericity is based on a chi-square transformation of thedeterminant of the correlation matrix.
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Total Variance Explained
Compone Initial Eigenvalues Extraction Sums of Rotation Sums of
nt Squared Loadings Squared Loadings
Tota % of Cumulati Tota % of Cumulati Tota % of Cumulati
l Varian ve % l Varian ve % l Varian ve %ce ce ce
1 3.04 38.092 38.092 3.04 38.092 38.092 2.64 33.007 33.0077 7 1
2 1.41 17.625 55.717 1.41 17.625 55.717 1.81 22.710 55.7170 0 7
3 .989 12.361 68.078
4 .819 10.243 78.320
5 .685 8.564 86.884
6 .473 5.913 92.7977 .338 4.221 97.018
8 .239 2.982 100.000
Extraction Method: Principal Component Analysis.
From the Eigen Value Plot it is observed that only 2 components have Eigen Valuegreater than 1. The total or cumulative percent of variance shown by these twocomponents is 55.717%.
Communalities
Initial Extraction
V1 1.000 .774
V2 1.000 .370
V3 1.000 .473
V4 1.000 .734
V5 1.000 .613
V6 1.000 .337
V7 1.000 .548
V8 1.000 .609
Extraction Method: Principal Component Analysis.
Component Transformation Matrix
Component 1 2
1 .867 .498
2 -.498 .867
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
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Rotated Component Matrixa
Component
1 2
V1 -.048 .878
V2 .564 .227
V3 .505 .467
V4 .836 .189
V5 .769 .147
V6 .437 .382
V7 .168 .721
V8 .746 -.231
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
The above table shows loadings on the two components of the variables. The variables withhighest loadings in one component form the major part of that component. Hence, forComponent 1, the highest loadings have been on the variables V4 (0.836), V5 (0.769), V8(0.746), V2 (0.564), V3 (0.505). For Component 2, the highest loadings of the variables areV1 (0.878), V7 (0.721), V6 (0.382).
Thus, we can extract two main factors which the consumers find influential for TVCommercials.
F1 = Convincing Appeal and Character’s influence.
F2 = Memorable Visual engagement and Emotional Connect
Finally, The Variables were reduced into two important factors that the affect the consumer‟s perception towards TV Commercials.
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3.3.2. Factor Analysis
Objective: Determine the most important factors due to which consumers visit telecoms like
Bharti Airtel Ltd..
To summarize the underlying factors that are responsible the consumers buying behaviour for
telecom telecom players, factor analysis was performed with 7 variables on a sample size of 75
customers with a likert scale of 5. The results and tables of factor analysis are as follows.
V1 Price
V2 Quality of VASs
V3 Product Range and Variety
V4 Brand Name
V5 Quality of Products
V6 PackagingV7 Attractive Advertisements
Correlation Matrix
V1 V2 V3 V4 V5 V6 V7
V1 1.000 .148 .141 .025 -.302 .542 .160
V2 .148 1.000 .056 -.373 .099 -.043 -.276
V3 .141 .056 1.000 .330 .127 .136 -.032
Correlation V4 .025 -.373 .330 1.000 .026 .481 .028
V5 -.302 .099 .127 .026 1.000 -.098 -.003
V6 .542 -.043 .136 .481 -.098 1.000 .213
V7 .160 -.276 -.032 .028 -.003 .213 1.000
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .411
Approx. Chi-Square 99.799
Bartlett's Test of Sphericity df 21
Sig. .000
The null hypothesis, that the population correlation matrix is an identity matrix, is rejected by
Bartlett‟s test of sphericity.
The value of KMO statistic is 0.411 which is smaller than 0.5 and Sig. Value is 0.00.
To determine how many components (factors) to „extract‟ we need to consider a few piecesof information provided in the output. Using Kaiser‟s criterion we are interested only incomponents that have an eigenvalue of 1 or more.
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Communalities
Initial Extraction
V1 1.000 .821
V2 1.000 .805
V3 1.000 .622V4 1.000 .774
V5 1.000 .478
V6 1.000 .747
V7 1.000 .425
Extraction Method: Principal Component Analysis.
Total Variance Explained
Compone Initial Eigenvalues Extraction Sums of Rotation Sums ofnt Squared Loadings Squared Loadings
Tota % of Cumulati Tota % of Cumulati Tota % of Cumulati
l Varian ve % l Varian ve % l Varian ve %
ce ce ce
1 1.98 28.340 28.340 1.98 28.340 28.340 1.68 24.080 24.0804 4 6
1.40 1.40 1.542 20.131 48.471 20.131 48.471 22.049 46.129
9 9 3
3 1.27 18.277 66.748 1.27 18.277 66.748 1.44 20.619 66.7489 9 3
4 .957 13.668 80.416
5 .730 10.426 90.842
6 .414 5.919 96.761
7 .227 3.239 100.000
Extraction Method: Principal Component Analysis.
From the Eigen Value Plot it is observed that only 3 components have Eigen Value greaterthan 1. The cumulative percent of variance shown by these two components is 66.748%
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Component Transformation Matrix
Component 1 2 3
1 .696 .581 -.421
2 .706 -.448 .5493 -.130 .679 .722
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Component Score Coefficient Matrix
Component
1 2 3
V1 .544 -.007 .143
V2 .154 .003 .626V3 -.036 .526 .223
V4 -.051 .470 -.240
V5 -.363 .317 .127
V6 .371 .241 -.063
V7 .135 -.133 -.414
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Component Scores.
The above table shows loadings on the three components of the variables. The variables withhighest loadings in one component form the major part of that component. Hence, forComponent 1, the highest loadings have been on the variables V1(0.544). For Component 2,the highest loadings of the variables are V3 (0.526), V4 (0.470).For component 3, the highestloadings are on V2 (0.626)
Thus, we can extract three main factors which the consumers find important for visitingtelecoms like Bharti Airtel Ltd.
F1 = Price and budget telecom player
F2 = Product Range with Brand Name
F3 = Quality of VASs
Finally, The Variables were reduced into three important factors that the affect theconsumer‟s perception towards buying of products/services from telecom products andservices telecom player companies.
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3.3.3. Discriminant Analysis
Discriminant Analysis has been performed to find an equation which will minimize the
possibility of misclassifying cases into the respective groups or categories. The survey
intended to categorize the respondents into high impact and medium impact customers. Theimpact here is of TV advertisements of Bharti Airtel Ltd.. This is mapped through three
independent variables. Age of respondents, their frequency of visit to telecom products and
services telecom players in a month and the number of TV advertisements they can recall of
Bharti Airtel Ltd..
Table of Eigen Values:
This provides information on each of the discriminate functions (equations) produced. Themaximum number of discriminant functions produced is the number of groups minus 1. Weare only using two groups here, namely „Medium Impact‟ and „High Impact‟, so only one
function is displayed.The canonical correlation is the multiple correlations between the predictors and thediscriminant function. With only one function it provides an index of overall model fit whichis interpreted as being the proportion of variance explained (R2).
Canonical Correlation of 0.642 suggests that the model explains 41.21% of variation in thegrouping variables
Eigenvalues
Functio Eigenvalu % of Cumulative Canonical
N e Variance % Correlation
1 .700a 100.0 100.0 .642
a. First 1 canonical discriminant functions were used inthe analysis.
The Wilks‟ Lambda must be close to 1. In this case, it is .588 and Sig. is .000.
Wilks' Lambda
Test of Wilks' Chi-square df Sig.
Function(s) Lambda
1 .588 36.891 3 .000
We have three independent variables – age, frequency and number of ads recalled. We needto find which of these variables is the best predictor of the advertisement impact being highor medium for the respondents.
To find this, we look at the Standardized Function Coefficients table. The absolute value ofthe standardized function coefficient is of relative importance. And so we find thatAdvertisement Recall (0.846) is the best predictor followed by Frequency of Visit (0.211)and then the age of respondent.
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Standardized Canonical Discriminant Function Coefficients
Function
1
V6 .211
V7 .846
V8 -.180
Thus, the order of importance is Frequency of Visit>Number of Advertisements
Recalled>Age for categorizing respondents who have a high or medium impact of
advertisements on the buying behaviour.
Structure Matrix
Function
1V7 .947
V8 -.545
V6 .477
Pooled within-groups correlations between discriminating variables and standardizedcanonical discriminant functions
Variables ordered by absolute size of correlation within function.
Canonical Discriminant Function Coefficients
Function1
V6 .195
V7 .838
V8 -.026
(Constant) -1.506
Unstandardized coefficients
To find which respondents are in high ad impact or medium ad impact category, we use the
outputs of unstandardized coefficients in the discriminant function and means of canonicalvariables. The means of canonical variables gives us new means for the transformed groupcentroids.
Thus, the new mean for Group 1 (Medium Impact) is -1.110 and for Group 2 (High Impact)is 0.614.The midpoint of these two is not 0. This also gives us a new decision rule forclassifying any new respondents in the two groups so as to decide whether to pitch in forsales and use costly methods or not. If the discriminant score of a customer falls to the left ofthe midpoint we classify as Group 2 and if it falls to the right of the midpoint we classify asGroup 1 Customer.
Thus, a respondent with a positive discriminant score will have higher impact ofadvertisements on the buying behaviour as compared to a respondent with a negative
discriminant score.
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Functions at Group Centroids
V9 Function
1
1 -1.110
2 .614
Unstandardized canonical discriminant functions evaluated at group means
The discriminant score can be found using canonical discriminant function coefficienttable. The equation for discriminant score that can be used is
Z = 0.195 (Frequency of Visit) + 0.838 (Ad Recall number) - 0.026 (Age of Respondent)
– 1.506
Classification Resultsa
V9 Predicted Group TotalMembership
1 2
OriginaCount
1 22 4 26
2 7 40 47
L 1 84.6 15.4 100.0%
2 14.9 85.1 100.0
a. 84.9% of original grouped cases correctly classified.
The above table shows the classification accuracy as 84.9% of the model. This level ofaccuracy may not hold for all future classifications of new cases. But it is a pointer towardsthe model being a good one assuming the input data was relevant and scientifically collected.
Output of Discriminant Analysis
The output of discriminant analysis is a discriminant score which would classify newcustomers into Group 1 or Group 2 customers and would also specify the misclassified casesif any in the data.
We could also find that the independent variables used are relatively significant predictors of
the dependent variable.
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Chapter - 4
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4.1. Results and Conclusion
The outcome of the project was inline with the objectives thought for the project. We couldcapture the following results from this research process.
TV Advertisements are appealing and more engaging than other forms of advertisement.
Celebrity associations are important and a TV ad is memorable.
The two major factors responsible for Brand Recall in a TV commercial are audience
appropriate humour and character of which says a story line.
For Bharti Airtel Ltd. the effectiveness of TV ad is mapped through communication and reach
of the advertisements. It could be suggested that Bharti Airtel Ltd. may work of making their
TV commercials more engaging and memorable through humour and upbeat storyline for
better brand recall.
The most important factors for trying out a new product or a new telecom products and
services telecom player are price, quality of service and the product variety. Bharti Airtel Ltd.
excels in all of these and so a number of people accept their offerings
Finally, it can be concluded that advertisements make a memorable impact on the minds of
the consumers and TV commercials create influence and direct consumer buying behaviour.
Advertisement effectiveness can also be measured through the sales of a store or telecom
player, but it is at the side of the company. Therefore, we measure TOMA from the
consumer ‟s perspective.
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4.2. Limitations of the Project
The following limitations and challenges were faced during the entire research study :
It was an objective to measure the effectiveness of advertisements, but only fromsingle perspective we could measure. There are two ways to measure advertisement
effectiveness that is through sales and through communication or reach. For
identifying communication we did a qualitative analysis however for the sales part,
we could not apply the Adstock model since data from the company‟s internal record
was to be found which was not available on the net.
Another challenge was during Word associations. Understanding what customers
perceived Bharti Airtel Ltd. as a brand was difficult. Since the group of 15 people
comprised from all age groups that Bharti Airtel Ltd. targets, there was a mix of
features we could map. Thus, compiling the findings were vague and difficult.
4.2. Future Scope of Study
The advertisement impact may also study the impact on children and how it affects children
going for telecom products and services thus compromising with their health and becoming
obese. Another scope for study can be how effective telecoms have been in communicating
the nutritional value of their products which is a difficult task for telecoms.
Further, this study can be expanded to look at the sales of the organization just after one week
of two weeks of a new advertisement has been released and how the sales are related to the
advertisement. This would require historical data of the organization, the investments in
bringing out the new advertisements and the impact that it has on the people and sales of the
company.
The study may also include the CSR activities of telecoms and how they maintain an image
of being a telecom products and services telecom player in the current growing awareness
and consciousness about health issues.
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4.4. Learning from the Final Research Project
The final research project was a series of learning instances in many ways. It not just taught
the area of interest in advertisements and consumer behaviour but also taught how to work
effectively when it is research. The objectives of the project were initially not clear and the
pathway was not defined properly, yet with a series of interactions with the mentor, every
step got clear thus getting a direction for the destination of research.
The most important and teaching part was the qualitative research where AIDA model was
applied and understand the perceptions of the consumers regarding a famous telecom was
deeply engrossing.
I would like to work in this field even more and search for more opportunities to carry on this
project at a larger scale and find out more dimensions to the same. The learning were also in
technical terms where i had to get out of the comfort zone and use some statistical tools that
were never used before thus enhancing the learning experience.
Finally upon completion of the project, it is realized that presentation also plays an importantrole in work. Thus, presenting the done work was also a greta learning experience.
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References
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from http://www.sciedupress.com/journal/index.php/bmr/article/viewFile/805/389
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September 20, 2015, from http://ir.lib.stust.edu.tw/bitstream/987654321/18207/1/PID2338685.pdf
Emily Bosma,Dana Sipola, and Elyse Pylman. College Students‟ Perceptions
ofVodafone in the UK. Retrieved Spetember 25,2015, from http://www2.gvsu.edu/bosmae/graphics/CAP%20115%20paper.pdf
Sophie Alice Burge(2013). The Motivational Reasons behind Consumer Choice inBranded Telecom Products & Services. Retrieved October 5,2015, from http://www2.warwick.ac.uk/fac/cross_fac/iatl/reinvention/issues/bcur2013specialissue /burge/
Hazem Rasheed Gaber(2014).Telecom products and services advertising in social
media. A case study of Facebook in Egypt. Retrieved December 4, 2015, from http://jbrmr.com/admin/content/pdf/i-20_c-182.pdf
Gulmez Mustafa, Karaca Sukran Kitapci Olgun (2013).The Effects Of Outdoor
Advertisements On Consumers. Retrieved December 22, 2015 from https://www.researchgate.net/profile/Olgun_Kitapci/publications
William D. Wells (1997). Measuring Advertising Effectiveness (Advertising and Consumer
Psychology Series .
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Annexure – 1 – [Questionnaire]
Advertisement Effectiveness and Impact on Consumer behaviour for telecomproducts and services telecom players
* Required
1. Do you consume Telecom Products and Services? *
o Yes
o No
2. If Yes, which of the following do you visit mostly?
o Airtel
o Vodafone
o Idea
o AIRCEL
o Loop Mobile
o Tata DOCOMO
o BSNL
o Reliance
o Other:
3. What type of advertisements for telecom products and services affect you the most(in terms of buying)?*
o Newspaper and Magazine ads
o Social media advertisements
o TV Commercials
o Radio Commercials
o Billboards
o Other:
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4. Mark on the intensity of your agreement * (1- Strongly agree 2- Agree 3- Neutral 4- Disagree 5- Strongly disagree)
1 - Strongly
2 - Agree 3 - Neutral 4 - Disagree
5 - Strongly
Agree Disagree
Television adsare visuallyappealing andengaging
The duration ofa TV ad makesan impact onthe viewer
TV
commercialsconvey the
intended
message easily
I am convinced
to buy a product
easily through a
TV
advertisement
TV ads are
better andmore
appealing
than any
other types
TV adsdevelop anemotionalconnect withthe viewer
TV ads are
memorable The characters
in an
advertisement
are the
influencing
factors
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5. What is the frequency of your visit to telecom products and services store in a month? *
o 0-2 times
o 3-4 times
o 4-6 times
o More than 6 times
6. How many ads can you recall for Bharti Airtel Ltd.? *
o 0 to 2
o 3 to 5
o 6 to 8
o Above 8
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7.
Mark on the intensity of your agreement. *
(1- Strongly Agree, 2- Agree, 3- Neutral, 4- Disagree, 5- Strongly Disagree)
1 - Strongly 2 - Agree 3 - Neutral 4 - Disagree
5 - Strongly
Agree Disagree
I visit Telecom products andservices storesonly becauseof the Pricethey offer.
Quality ofVASs is animportantconsideration
for visiting aTelecom
products andservicesstore.
Product Rangeand Variety areimportant
Only Brand
Name is enough
for my visit to a
telecom products and
services store.
The Quality of productsmatters to methe most.
I visit Telecom
companies
because of theirProduct packaging
Attractive
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1 - Strongly
2 - Agree 3 - Neutral 4 - Disagree5 - Strongly
Agree Disagree
Advertisements make me
visit telecom products
and services store.
8. Please specify your age group. *
o 15 - 22 years
o 23 - 30 years
o 31 - 40 years
o 41 and above
9.
Please specify your occupation. *
o Student
o Self Employed
o Salaried
o Home Maker
o Not Employed
10.
Please specify your income group. *
o 0 - 3 lacs
o 3 - 6 lacs
o 6 - 9 lacs
o 9 lacs and above
11. What feature of a TV advertisement evokes interest in you to try out a product? *
o Audience appropriate humour
o Relatable characters and situations
o Simple and upbeat storyline
o Character dialogue to tell a story
o Build an emotional connection
o Taglines and Jingles
o Celebrity
Submit
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