Consumer Behaviour Final

Impact of Advertisement on Consumer Buying Behavior towards, Smartphones

INTRODUCTION

A Smartphone is a mobile phone built on a mobile operating system, with more advanced

computing capability connectivity than a feature phone. The first smartphones combined the

functions of a personal digital assistant (PDA) with a mobile phone. Later models added the

functionality of portable media players, low-end compact digital cameras, pocket video cameras,

and GPS navigation units to form one multi-use device. Many modern smartphones also include

high-resolution touch screens and web browsers that display standard web pages as well as mobile-

optimized sites. High-speed data access is provided by Wi-Fi and mobile broadband. In recent

years, the rapid development of mobile app markets and of mobile commerce have been drivers of

smartphone adoption.

The mobile operating systems (OS) used by modern smartphones include Google's Android,

Apple's iOS, Nokia's Symbian, RIM's BlackBerry OS, Samsung's Bada, Microsoft's Windows

Phone, Hewlett-Packard's web OS, and embedded Linux distributions such as Maemo and MeeGo.

Such operating systems can be installed on many different phone models, and typically each

device can receive multiple OS software updates over its lifetime. A few other upcoming operating

systems are Mozilla's Firefox OS, Canonical Ltd.'s Ubuntu Phone, and Tizen.

HISTORY OF SMARTPHONES

Although devices combining telephony and computing were conceptualized as early as 1973 and

were offered for sale beginning in 1994, the term "smartphone" did not appear until 1997, when

Ericsson described its GS 88 "Penelope" concept as a "Smart Phone".

The distinction between smartphones and feature phones can be vague, and there is no official

definition for what constitutes the difference between them. One of the most significant differences

is that the advanced application programming interfaces (APIs) on smartphones for running third-

party applications can allow those applications to have better integration with the phone's OS and

hardware than is typical with feature phones. In comparison, feature phones more commonly run

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

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

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

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

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

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

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

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

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

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

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

http://en.wikipedia.org/wiki/Hewlett-Packard

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

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

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

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

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

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

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

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

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

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

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

http://en.wikipedia.org/wiki/Android_(operating_system)

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

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

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

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

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

http://en.wikipedia.org/wiki/Wi-Fi

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

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

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

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

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

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

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

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

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

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

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

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

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


on proprietary firmware, with third-party software support through platforms such as Java ME or

BREW. An additional complication in distinguishing between smartphones and feature phones is

that over time the capabilities of new models of feature phones can increase to exceed those of

phones that had been promoted as smartphones in the past.

Some manufacturers and providers use the term "super phone" for their high end phones with

unusually large screens and other expensive features. Other commentators prefer "phablet" in

recognition of their convergence with low-end tablet computers.

The Nokia N8 smartphone is the first device to run on the Symbian mobile operating system and

the first smartphone to feature a 12 megapixel autofocus lens. Symbian is a mobile operating

system designed for smartphones originally developed by Psion and later passed to and managed

by Symbian Ltd. but currently maintained by Accenture. The Symbian platform is the successor to

Symbian OS and Nokia Series 60. The latest version, Symbian, was officially released in Q4 2010

and first used in the Nokia N8.

The first Symbian phone, the touch screen Ericsson R380 Smartphone, was released in 2000, and

was the first device to be marketed as a 'smartphone'. It combined a PDA with a mobile phone.

Later in 2000, the Nokia 9210 communicator was released, also with Symbian. The later 9500 was

Nokia's first camera phone and first Wi-Fi phone. The 9300 was smaller, and the E90

Communicator included GPS. In 2007, Nokia launched the Nokia N95 which integrated various

multimedia features: GPS, a 5 megapixel camera with autofocus and LED flash, 3G and Wi-Fi

connectivity and TV-out. In the next few years these features would become standard on high-end

smartphones. The Nokia 6110 Navigator was a Symbian based dedicated GPS phone introduced in

June 2007.

In 2010, Nokia released the Nokia N8 smartphone with a stylus-free capacitive touch screen, the

first device to use the new Symbian^3 OS. Its mega pixel camera able to record HD video in 720p.

It also featured a front-facing VGA camera for videoconferencing.

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

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

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

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

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


BlackBerry

In 1999, RIM released its first BlackBerry devices, making secure real-time push-email

communications possible on wireless devices. Services such as BlackBerry Messenger and the

integration of all communications into a single inbox allowed users to access, create, share and act

upon information instantly. There are 80 million active BlackBerry service subscribers (BIS/BES)

and the 200 millionth BlackBerry smartphone was shipped in September 2012 (twice the number

since June 2010]). Popular models include the BlackBerry Bold, BlackBerry Torch (slider and all-

touch) and BlackBerry Curve. Most recently, RIM has undergone a platform transition. The

company has changed its name to Blackberry and is pushing out new devices on a new platform

named "Blackberry 10." So far, the only device to be released on this platform is the full-touch

"Blackberry Z10". A similar QWERTY device is expected to launch later in 2013 called the "Q10"

A BlackBerry Curve 8900

Android

Android is an open-source platform founded in October 2003 by Andy Rubin and backed by

Google, along with major hardware and software developers (such as Intel, HTC, ARM, Motorola

and Samsung, to name a few), that form the Open Handset Alliance. The first phone to use

Android was the HTC Dream, branded for distribution by T-Mobile as the G1. The software suite

included on the phone consists of integration with Google's proprietary applications, such as Maps,

Calendar, and Gmail, and a full HTML web browser. Android supports the execution of native

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applications and a preemptive multitasking capability (in the form of services). Third-party free

and paid apps are available via Google Play, which launched in October 2008 as Android Market.

In January 2010, Google launched the Nexus One smartphone using its Android OS. Although

Android has multi-touch abilities, Google initially removed that feature from the Nexus One, but it

was added through a firmware update on February 2, 2010.

On June 24, 2011, the HTC EVO 3D was released by the HTC Corporation, a smartphone which

can produce stereoscopic 3D effects and take 3D stereoscopic photos for viewing on its screen.

Samsung Galaxy S III sales hit 18 million in the third quarter of 2012.In November 13, 2012

Google and LG released the Nexus 4 with Qualcomm's Snapdragon S4 Pro processor.

Galaxy Nexus Android 4.0 smartphone

IOS

In 2007, Apple Inc. introduced the original iPhone, one of the first mobile phones to use a multi-

touch interface. The iPhone was notable for its use of a large touch screen for direct finger input as

its main means of interaction, instead of a stylus, keyboard, and/or keypad as typical for

smartphones at the time. It initially lacked the capability to install native applications, meaning

some did not regard it as a smartphone. However in June 2007 Apple announced that the iPhone

would support third-party "web 2.0 applications" running in its web browser that share the look

and feel of the iPhone interface. A process called jail breaking emerged quickly to provide

unofficial third-party native applications to replace the built-in functions (such as a GPS unit,

kitchen timer, radio, map book, calendar, notepad, and many others)

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First generation Apple iPhone (int. June, 2007)

As of late-2012 and early 2013, an industry trend has emerged to move towards full HD 1080p

smartphone screens for the highest-end handsets, with some of the models as follows:

HTC Butterfly/Droid DNA/HTC One (2013)

Sharp SH930W

Sony Xperia Z/ZL

OPPO Find 5

Huawei Ascend D2

LG Optimus G Pro

Lenovo K900

ZTE Grand S

Panasonic ELUGA X

Fujitsu ARROWS X

Pantech Vega No.6

Alcatel One Touch Idol X

Asus PadFone Infinity

Samsung Galaxy S IV (new PenTile matrix)

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ADVERTISEMENT

The word advertising originates from a Latin word advertise, which means to turn to. The

dictionary meaning of the term is “to give public notice or to announce publicly”. Advertising may

be defined as the process of buying sponsor-identified media space or time in order to promote a

product or an idea.

The American Marketing Association, Chicago, has defined advertising as “any form of non-

personal presentation or promotion of ideas, goods or services, by an identified sponsor.”

An Advertisement is a mass communicating of information intended to persuade buyers to by

products with a view to maximizing a company’s profits.

The elements of advertising are:

It is a mass communication reaching a large group of consumers.

It makes mass production possible.

It is non-personal communication, for it is not delivered by an actual person, nor is it

addressed to a specific person.

It is a commercial communication because it is used to help assure the advertiser of a long

business life with profitable sales.

Advertising can be economical, for it reaches large groups of people. This keeps the cost

per message low.

The communication is speedy, permitting an advertiser to speak to millions of buyers in a

matter of a few hours.

Advertising is identified communication. The advertiser signs his name to his

advertisement for the purpose of publicizing his identity.

Content and layout of Advertising

The information in an advertisement should benefit the buyers. It should give them a more

satisfactory expenditure of their rupees.

It should suggest better solutions to their problems.

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The content of the advertisement is within the control of the advertiser, not the medium.

Advertising without persuasion is ineffective. The advertisement that fails to influence

anyone, either immediately or in the future, is a waste of money.

The function of advertising is to increase the profitable sales volume. That is, advertising

expenses should not increase disproportionately.

Advertising includes following message carriers:

Newspapers and magazines;

On radio and television broadcasts;

Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen, or by

inserts in packages);

Dealer help materials,

Window display and counter – display materials and efforts;

Store signs, motion pictures used for advertising,

Novelties bearing advertising messages and Signature of the advertiser,

Label stags and other literature accompanying the merchandise.

Advertisement ethics:

Advertising is not an exact science. An advertiser’s circumstances are never identical with those of

another; he cannot predict with accuracy what results his future advertising efforts will produce.

Advertising is not a game, because if advertising is done properly, both the buyer and the

seller benefit from it.

Advertising is not a toy. Advertiser cannot afford to play with advertising. Advertising

funds come from sales revenue and must be used to increase sales revenue.

Advertisements are not designed to deceive. The desire and hope for repeat sales insures a

high degree of honesty in advertising.

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The activities that may be excluded from advertising are:

The offering of premiums to stimulate the sale of products

The use of exhibitions and demonstrations at fairs, show and conventions

The use of samples and activities, involving news releases and the activities of personal

selling forces

The payment of advertising allowances which are not used for advertising;

The entertainment of customers

Advertising Objectives

Each advertisement is a specific communication that must be effective, not just for one customer,

but for many target buyers. This means that specific objectives should be set for each particular

advertisement campaign. Advertising is a form of promotion and like a promotion; the objectives

of advertising should be specific. This requires that the target consumers should be specifically

identified and that the effect which advertising is intended to have upon the consumer should be

clearly indicated. The objectives of advertising were traditionally stated in terms of direct sales.

Now, it is to view advertising as having communication objectives that seek to inform persuade

and remind potential customers of the worth of the product. Advertising seeks to condition the

consumer so that he/she may have a favorable reaction to the promotional message. Advertising

objectives serve as guidelines for the planning and implementation of the entire advertising

programme.

The basic objectives of an advertising programme may be listed as below:

To stimulate sales amongst present, former and future consumers. It involves a decision

regarding the media, e.g., TV rather than print ;

To communicate with consumers. This involves decision regarding copy ;

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To retain the loyalty of present and former consumers. Advertising may be used to reassure

buyers that they have made the best purchase, thus building loyalty to the brand name or

the firm.

To increase support. Advertising impliedly bolsters the morale of the sales force and of

distributors, wholesalers, and retailers, ; it thus contributes to enthusiasts and confidence

attitude in the organizational. :

To project an image. Advertising is used to promote an overall image of respect and trust

for an organization. This message is aimed not only at consumers, but also at the

government, shareholders, and the general public.

Different Ways to Advertise Products and Services

Advertising is the lure that draws new customers to your business or product. Small businesses

utilize several options to advertise a product or service. These range from traditional media to

newer and out-of-the-box methods to get the word out. You can know what methods work by

tracking which campaigns produce sales.

Online Advertising

Posting ads on websites that receive heavy traffic is one way to get the word out about your

business. Social networking sites such as Facebook or MySpace have advertising programs

with ads tailored to a particular demographic. These ads show up only next to profiles that

meet the specifications of your product's target market. You can also use the Google AdWords

service to post online ads.

Newspaper Ads

A traditional form of advertising, daily and weekly newspaper ads allow you to target specific

geographic neighborhoods. Attaching an incentive, such as a coupon, to the ad can help track

the ad's effectiveness. Purchasing an ad in a section relevant to your business -- for example, a

home improvement business ad in the home and garden section -- can also help you to reach

target clients.

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Radio Advertising

A catchy jingle and quick tag line can enhance a radio ad's effectiveness. Matching the station

you choose with your target demographic is key. If you want to reach adults aged 35 to 64, an

adult contemporary station is a good bet. An alternative or urban station is good to reach youth

aged 18 to 24. At the time of publication, radio ad provider Strategic Media reports that those

who buy products in response to a radio ad spend an average of $148 per purchase, compared

to an average of $98 for television infomercials.

Television Advertising

Television ads on local stations might require time and effort to produce, but can be especially

effective if you sell a product or service with a high price point. At the time of publication,

strategic Media states that a TV ad can cost $50,000, while a radio ad will cost only $1,500.

However, you can justify the difference if a TV ad can reach customers who would not respond

to radio.

Public Speaking

If the product you sell relates to your own expertise, public speaking can be a great

advertisement. Offer your services to organizations that could benefit from one of your

workshops or lectures. Bring business cards and promotional materials to the event to

encourage your audience to spread the word about your services.

Door Hangers and Flyers

Canvassing the neighborhood, placing flyers in mailboxes or hanging ads on doorknobs, is a

good way to target a specific area and to make sure your potential customers have seen your

information. Even if most homeowners will discard the information, gaining a handful of

clients may be enough for a positive return on the marketing campaign investment.

Event Sponsorship

Advertising your product or service through event sponsorship can take many forms. You

might receive an acknowledgement in the event program, have an on-site location where you

can give out sample product, or your company logo might appear on the event posters. One

option for events that require a hand-stamp for entry is to provide the venue with a stamp that

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bears your company logo; the attendees will then have your logo close by for a day or two

afterwards.

Word-of-Mouth Advertising

A non-traditional form of advertising, word-of-mouth advertising involves hiring people to talk

about your product or service in a public place in a way that other people overhear them. Hired

marketers can go into coffee shops in pairs and talk audibly about your bike shop on 3rd

Avenue or your door-to-door leaf blowing service. The campaign is effective if the essential

information needed to send clients to your business is simple and easy to slip into conversation.

Most research focuses on the communication effect rather than sales effect because it is a long run

process. In the short run, however sales may be slight and important but in the long run its effects

on brands and companies may be of great importance. Indirectly it will affect the sales in the long

run, by changing the consumer awareness and attitude. The advertisers are therefore, concerned

with their impact on consumer awareness and attitude.

The communication effect on sales may be presented in the following figure:-

Communication Effect on Sales

Awareness

Attitude

Trial

Satisfaction

Purchases or repurchase

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Importance of Advertising

Generally, advertising is a relatively low-cost method of conveying selling messages to numerous

prospective customers. It can secure leads for salesmen and middlemen by convincing readers to

request more information and by identifying outlets handling the product. It can force middlemen

to stock the product by building consumer interest. It can help train dealers salesmen in product

uses and applications. It can build dealer and consumer confidence in the company and its products

by building familiarity. Advertising is to stimulate market demand. While sometimes

advertising alone may succeed in achieving buyer acceptance, preference, or even demand for the

product, it is seldom solely relied upon. Advertising is efficiently used with at least one other sales

method, such as personal selling or point-of-purchase display, to directly move customers to

buying action.

Advertising has become increasingly important to business enterprises –both large and small.

Outlay on advertising certainly is the voucher. Non-business enterprises have also recognized the

importance of advertising. The attempt by army recruitment is bases on a substantial advertising

campaign, stressing the advantages of a military career. The health department popularizes family

planning through advertising Labour organizations have also used advertising to make their

viewpoints known to the public at large. Advertising assumes real economic importance too.

Advertising strategies that increase the number of units sold stimulate economies in the production

process. The production cost per unit of output is lowered. It in turn leads to lower prices. Lower

consumer prices then allow these products to become available to more people. Similarly, the price

of newspapers, professional sports, radio and TV programmes, and the like might be prohibitive

without advertising. In short, advertising pays for many of the enjoyable.

Entertainment and educational aspects of contemporary life. Advertising has become an important

factor in the campaigns to achieve such societal-oriented objectives such as the discontinuance of

smoking, family planning, physical fitness, and the elimination of drug abuse. Though in India,

advertising was accepted as a potent and recognized means of promotion only 25 years ago, its

growing productive capacity and output necessitates the finding of consumers and advertising

plays an important role in this process. Advertising helps to increase mass marketing while helping

the consumer to choose from amongst the variety of products offered for his selection. In India,

advertising as a profession is in its infancy. Because of this fact, there is a tremendous scope for

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development so that it may be productively used for the benefit of producers, traders, consumers,

and the country’s economy.

IMPACT OF ADVERTISEMENT

Advertising has an important effect on a country’s economy, society, culture, and political system.

This is especially true in the United States where the advertising industry plays such a prominent

role.

1. Economic Impact

Most economists believe that advertising has a positive impact on the economy because it

stimulates demand for products and services, strengthening the economy by promoting the

sale of goods and services. Manufacturers know that advertising can help sell a new

product quickly, enabling them to recoup the costs of developing new products. By

stimulating the development of new products, advertising helps increase competition.

Many economists believe that increased competition leads to lower prices, thereby

benefiting consumers and the economy as a whole. These economists also argue that by

interesting consumers in purchasing goods, advertising enables manufacturers and others to

sell their products in larger quantities. The increased volume of sales enables companies to

produce individual units at lower costs and therefore, sell them at a lower price.

Advertising thus benefits consumers by helping lower prices.

Other economists, however, believe that advertising is wasteful. They argue that the cost of

advertising adds to the cost of goods and that most advertising simply encourages

consumers to buy one brand rather than another. According to this view, advertising simply

moves sales from one company to another, rather than increasing sales overall and thereby

benefiting the economy as a whole.

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2. Social Impact

Advertising can have wide-ranging repercussions on a society. Some critics suggest that

advertising promotes a materialistic way of life by leading people to believe that happiness

is achieved by purchasing products. They argue that advertising creates a consumer culture

in which buying exciting new products becomes the foundation of the society's values,

pleasures, and goals.

The way advertising has depicted racial minorities has also been harmful. Prior to 1960,

African Americans were usually shown in a subordinate position. Due to the influence of

the civil rights movement, however, advertisers by the 1980s had begun to depict African

Americans as students, professionals, or business people. However, many African

American organizations and community activists continue to object to the way that alcohol

and tobacco companies have seemingly targeted low-income minority communities with a

heavy preponderance of outdoor advertising for their products.

As ads have begun to more fully reflect the lives of women and African Americans in the

United States, increasing attention has been paid to the way in which advertising shows

other ethnic groups, including Hispanics, Asians, Native Americans, and Eastern

Europeans. There is still considerable debate over how advertising influences public

perception of gender and of particular ethnic groups.

Advertising has a major social impact by helping sustain mass communications media and

making them relatively inexpensive, if not free, to the public. Newspapers, magazines,

radio, and broadcast television all receive their primary income from advertising. Without

advertising, many of these forms of mass communication might not exist to the extent that

they do today, or they might be considerably more expensive, offer less variety, or even be

subject to government control through subsidies. In-depth news programs, a diversity of

magazines, and free entertainment might no longer be widely available.

At the same time, however, some critics warn that because advertising plays such a major

economic role, it may exercise undue influence on the news media and thereby curtail the

free flow of information in a free society. Reporters and editors, for example, may be

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hesitant to develop a news story that criticizes a major advertiser. As a result, society might

not be alerted to harmful or potentially harmful conduct by the advertiser. Most members

of the news media deny that pressure from an advertiser prevents them from pursuing news

stories involving that advertiser, but some members of the media acknowledge that they

might not be inclined to investigate an issue aggressively if it threatened to offend a major

advertiser.

Advertisers may affect media programming in other ways, too, critics charge. For example,

companies that sponsor TV programs prefer relatively wholesome, noncontroversial

programming to avoid offending a mass audience. This preference causes TV networks to

emphasize this type of programming. The result is that society may be denied the benefits

of being able to view challenging or highly original entertainment programs or news

programs on controversial issues. Because advertisers are especially interested in attracting

the 18 to 34 year olds who account for most consumer spending, television shows are often

developed with this audience in mind. If the ratings show that a program is not attracting

large audiences, particularly among 18 to 34 year olds, advertisers often withdraw support,

which causes a program to be canceled. As a result, shows that are more likely to interest

and to be of value to older audiences are not produced.

The impact of television on young children has received much attention. Research suggests

that children see television advertising as just another form of programming and react

uncritically to its messages, which makes them especially vulnerable to advertising. There

is also concern about the way in which adolescent girls respond to advertising that features

beautiful, thin models. Research indicates that many adolescent girls are unduly influenced

by this standard of beauty, become dissatisfied with their own bodies, and may develop

eating disorders in pursuit of a thin figure. New research suggests that adolescent boys are

also being influenced by advertising images of bulked-up, buffed bodies. As a result, many

become dissatisfied with their own body image, devote large amounts of time to

weightlifting, and may even take drugs that have harmful side effects in order to develop

more muscle. Those over the age of 60 are thought to be less influenced by advertising, but

some elderly people no longer process messages as easily as younger people, making them

more susceptible to questionable advertising claims.

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3. Political Impact

Advertising is now a major component of political campaigns and therefore has a big

influence on the democratic process itself. In 1998 more than $467 million was spent on

election campaigns in the United States. That amount of spending placed political

advertising in the ranks of the country’s 30 leading advertisers that year. Political

advertising is a relatively new development in U.S. history. Advertising professionals did

not become involved in electoral campaigns until the 1950s. But since then, political

advertising has grown in sophistication and complexity.

Political advertising enables candidates to convey their positions on important issues and to

acquaint voters with their accomplishments and personalities. Television advertising is

especially effective for candidates running for national or statewide office because it can

reach so many people at once. Candidates can also use advertising to respond effectively to

the charges of their opponents.

Various campaign finance reform proposals, however, have tried to address the impact of

television advertising on political campaigning. Because of the high cost of television ads,

the costs of political campaigns have skyrocketed, making it necessary for candidates to

raise money continually, even after they have been elected to office. Critics say this factor

jeopardizes the democratic process by making elected officials beholden to wealthy

contributors and by making it more likely that only the wealthy will run for office. Some

reform proposals have called for free airtime, but television and radio networks have

resisted this idea.

Critics of political advertising also charge that the 30-second television spot has become

more important to a political campaign than a thorough discussion of the issues. As a result,

voters are bombarded with image advertising rather than being acquainted with the

candidate’s positions. They contend that this practice is harmful to good government.

Issues are simplified, and candidates are “packaged and sold” much like a consumer

product, thereby distorting the political process.

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4. Cultural Impact

Advertising can affect cultural values. Some advertising messages, for example, encourage

aggressive individualism, which may clash with the traditional cultural values of a country

where the collective or group is emphasized over the individual or humility or modesty is

preferred to aggressiveness. With the globalization of the world economy, multinational

corporations often use the same advertising to sell to consumers around the world. Some

critics argue that advertising messages are thus helping to break down distinct cultural

differences and traditional values, causing the world to become increasingly homogeneous.

Many advertising campaigns, however, have universal appeal, overriding cultural

differences, or they contribute to culture in a positive way. Humor in advertising has made

many ad campaigns widely popular, in some cases achieving the status of folklore or taking

on new life in another arena. For example, a popular ad campaign for a fast-food chain with

the slogan “Where’s the beef?” became part of the 1980 Democratic presidential primary

campaign between Gary Hart and Walter Mondale. The ad ridiculed a competitor by

depicting a small hamburger patty dwarfed by a huge bun. During a primary debate one of

the candidates used the ad slogan to suggest that his opponent’s campaign lacked

substance.

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Consumer Buying Behavior

Buying Behavior is the decision processes and acts of people involved in buying and using

products. The aim of marketing is to meet and satisfying customer’s need and wants. The field of

consumer behavior studies how individuals and groups of individuals select, buy, use and dispose

of goods or services. Understanding consumer behavior and knowing consumers is not simple.

Consumers may say one thing and do another. They may not be in touch with their deeper

motivations. They may respond to influences that change their minds at the last minute.

But buying consumers provides clues for developing new products, product features, prices and

altering marketing strategy accordingly.

Need to understand:

Why consumers make the purchases that they make?

What factors influence consumer purchases?

The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs

to analyze buying behavior for:

Buyers reactions to a firms marketing strategy has a great impact on the firms success.

The marketing concept stresses that a firm should create a Marketing Mix (MM) that

satisfies (gives utility to) customers, therefore need to analyze the what, where, when and

how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

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Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing

is only one stage of the process. Not all decision processes lead to a purchase. All consumer

decisions do not always include all 6 stages, determined by the degree of complexity.

The 6 stages are:

1. Problem Recognition (awareness of need)

The buying process starts when the buyer recognizes the problem or need. The need can be

triggered by internal and external stimuli. Marketers need to identify the circumstances that

trigger a particular need. By gathering information from number of consumers, marketer

can identify the most frequent stimuli that spark an interest in a product category. They can

then develop marketing strategies that trigger consumer interest.

2. Information search

An aroused consumer will be inclined to search for more information. Consumer

information sources fall into four groups

Personal sources: Family, friend, neighbors, acquaintances.

Commercial Sources: advertising, salesperson, dealers, packaging, displays.

Public sources: Mass media, consumer-rating organizations.

Experimental sources: Handling, examining, using the product.

Knowing about the source will help the companies in preparing effective communications

for the target market. A successful information search leaves a buyer with possible

alternatives.

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3. Evaluation of Alternatives

How does the consumer evaluate competitive brands and make a final value judgment?

There is no single process used by all consumers or by one consumer in all buying

situation. Need to establish criteria for evaluation, features the buyer wants or does not

want. Rank/weight alternatives or resume search. Information from different sources may

be treated differently. Marketers try to influence by "framing" alternatives. But some basic

concept will help in understanding consumer evaluation processes.

First, the consumer is trying to satisfy a need.

Second, the consumer is looking for certain benefits from the product solution.

Third, the consumer sees each product as a bundle of attributes with varying abilities for

delivering the benefits sought to satisfy this need.

4. Purchase decision

In the evaluation stage, the consumer forms preferences among the brands in the choice set.

The consumer may also form an initiation to buy the most preferred brand. However, two

factors can intervene between the purchase intention and the purchase. Choose buying

alternative, includes product, package, store, method of purchase etc.

The first factor is the attitudes of others and the second factor is unanticipated situational

factors such as loss of income, some other urgent purchase etc.

In executing purchase intention, the consumer may make up to five purchase sub-decisions,

Brand decision

Vender decision

Quantity decision

Timing decision

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Payment method decision

5. Purchase

May differ from decision, time lapse between 4 & 5, product availability.

6. Post-Purchase Evaluation--outcome:

After purchasing the product the consumer will experience some level of satisfaction or

dissatisfaction. The marketer’s job thus, does not end when the product is brought.

Marketers must monitor post-purchase satisfactions, post-purchase actions and post-

purchase product uses. Cognitive Dissonance, have you made the right decision. This can

be reduced by warranties, after sales communication etc.

Types of Consumer Buying Behavior

Types of consumer buying behavior are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in a

product in a particular situation.

Buyer’s level of involvement determines why he/she is motivated to seek information

about a certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and

the higher the risk the higher the involvement. Types of risk:

Personal risk

Social risk

Economic risk

The four type of consumer buying behavior are:

(i) Routine Response/Programmed Behavior--buying low involvement frequently purchased

low cost items; need very little search and decision effort; purchased almost automatically.

Examples include soft drinks, snack foods, milk etc.

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(ii) Limited Decision Making--buying product occasionally. When you need to obtain

information about unfamiliar brand in a familiar product category, perhaps. Requires a

moderate amount of time for information gathering. Examples include Clothes--know

product class but not the brand.

(iii) Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or

infrequently bought products. High degree of economic/performance/psychological risk.

Examples include cars, homes, computers, education. Spend alot of time seeking

information and deciding. Information from the companies MM; friends and relatives, store

personnel etc. Go through all six stages of the buying process.

(iv) Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying Behavior. Product can

shift from one category to the next. For example: Going out for dinner for one person may be

extensive decision making (for someone that does not go out often at all), but limited decision

making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a

meal with a couple of friends will also determine the extent of the decision making.

Categories that Affect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following three factors:

1. Personal

2. Psychological

3. Social

Personal

Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in the family is

responsible for the decision making? Young people purchase things for different reasons than older

people.

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Psychological factors

Psychological factors include:

Motives

A motive is an internal energizing force that orients a person's activities toward satisfying a

need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers

can identify motives then they can better develop a marketing mix. MASLOW hierarchy of

needs.

Physiological

Safety

Love and Belonging

Esteem

Self Actualization

Need to determine what level of the hierarchy the consumers are to determine what

motivates their purchases.

Perception

Perception is the process of selecting, organizing and interpreting information inputs to

produce meaning. IE we chose what info we pay attention to, organize it and interpret it.

Information inputs are the sensations received through sight, taste, hearing, smell and

touch.

Selective Exposure

Select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies

current needs, intensity of input changes (sharp price drop).

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Selective Distortion

Changing/twisting current received information, inconsistent with beliefs. Advertisers that

use comparative advertisements (pitching one product against another), have to be very

careful that consumers do not distort the facts and perceive that the advertisement was for

the competitor. A current example...MCI and AT&T...do you ever get confused?

Selective Retention

Remember inputs that support beliefs, forgets those that don't. Average supermarket

shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of

purchases are unplanned. Exposed to 1,500 advertisements per day. Can't be expected to be

aware of all these inputs, and certainly will not retain many.

Interpreting information is based on what is already familiar, on knowledge that is stored in

the memory.

Ability and Knowledge

Need to understand individual’s capacity to learn. Learning, changes in a person's behavior

caused by information and experience. Therefore to change consumers' behavior about

your product, need to give them new information re: product free sample etc.

South Africa...open bottle of wine and pour it!! Also educate American consumers about

changes in SA. Need to sell a whole new country. When making buying decisions, buyers

must process information.

Knowledge

It is the familiarity with the product and expertise. Inexperience buyers often use prices as

an indicator of quality more than those who have knowledge of a product.

Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they

assume that the greater price indicates greater quality.

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Learning is the process through which a relatively permanent change in behavior results

from the consequences of past behavior.

Attitudes

Knowledge and positive and negative feelings about an object or activity-maybe tangible or

intangible, living or non- living...Drive perceptions

Individual learns attitudes through experience and interaction with other people.

Consumer attitudes toward a firm and its products greatly influence the success or failure

of the firm's marketing strategy.

Personality

All the internal traits and behaviors that make a person unique, uniqueness arrives from a

person's heredity and personal experience. Examples include:

Work holism

Compulsiveness

Self confidence

Friendliness

Adaptability

Ambitiousness

Dogmatism

Authoritarianism

Introversion

Extroversion

Aggressiveness

Competitiveness.

Traits affect the way people behave. Marketers try to match the store image to the

perceived image of their customers.

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There is a weak association between personality and Buying Behavior; this may be due to

unreliable measures Nike ads. Consumers buy products that are consistent with their self

concept.

Lifestyles

Recent US trends in lifestyles are a shift towards personal independence and individualism

and a preference for a healthy, natural lifestyle.

Lifestyles are the consistent patterns people follow in their lives.

Social Factors

Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family,

reference groups, social class and culture.

Opinion leaders

Spokes people etc. Marketers try to attract opinion leaders...they actually use (pay)

spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)

Roles and Family Influences

Role...things you should do based on the expectations of you from your position within a

group. People have many roles. Husband, father, employer/ee. Individuals role are

continuing to change therefore marketers must continue to update information.

Family is the most basic group a person belongs to. Marketers must understand:

that many family decisions are made by the family unit

consumer behavior starts in the family unit

family roles and preferences are the model for children's future family (can

reject/alter/etc)

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family buying decisions are a mixture of family interactions and individual

decision making

family acts an interpreter of social and cultural values for the individual.

The Family life cycle: families go through stages; each stage creates different consumer

demands:

bachelor stage

newly married, young, no children

full nest I, youngest child under 6

full nest II, youngest child 6 or over

full nest III, older married couples with dependent children

empty nest I, older married couples with no children living with them, head in

labor force

empty nest II, older married couples, no children living at home, head retired

solitary survivor, in labor force

solitary survivor, retired

Modernized life cycle includes divorced and no children.

Reference Groups

Individual identifies with the group to the extent that he takes on many of the values,

attitudes or behaviors of the group members.

Families, friends, sororities, civic and professional organizations. Any group that has a

positive or negative influence on a persons attitude and behavior.

Membership groups

Affinity marketing is focused on the desires of consumers that belong to reference groups.

Marketers get the groups to approve the product and communicate that approval to its

members. Credit Cards etc.!!

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The degree to which a reference group will affect a purchase decision depends on an

individual’s susceptibility to reference group influence and the strength of his/her

involvement with the group.

Social Class

An open group of individuals who have similar social rank. US are not a classless society.

US criteria; occupation, education, income, wealth, race, ethnic groups and possessions.

Social class influences many aspects of our lives. i.e. upper middle class Americans prefer

luxury cars Mercedes.

Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic names.

Lower-upper class, 1.2%, newer social elite, from current professionals and

corporate elite

Upper-middle class, 12.5%, college graduates, managers and professionals

Middle Americans-middle class, 32%, average pay white collar workers and

blue collar friends

Working class, 38%, average pay blue collar workers

Lower Americans-lower class, 9%, working, not on welfare

Lower-lower class, 7%, on welfare

Social class determines to some extent, the types, quality, and quantity of products that a

person buys or uses.

Lower class people tend to stay close to home when shopping, do not engage in much pre-

purchase information gathering. Stores project definite class images.

Family, reference groups and social classes are all social influences on consumer behavior.

All operate within a larger culture.

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Culture and Sub-culture

Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous

group of people and transmitted to the next generation.

Culture also determines what is acceptable with product advertising. Culture determines

what people wear, eat, reside and travel. Cultural values in the US are good health,

education, individualism and freedom. In American culture time scarcity is a growing

problem. IE change in meals. Big impact on international marketing.

Culture can be divided into subcultures:

geographic regions

Human characteristics such as age and ethnic background.

i.e West Coast, teenage and Asian American.

CONTROLLABLE FACTORS

The controllable factors like product, price, place and promotion are influencing the

consumer for buying.

Product

Product characteristics like attribute, taste, colour, packaging, quality, product knowledge,

innovation, ingredients, and brand image.

Colour

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According to Franken(1928) ,colours ,similar to words, have been viewed by conveying ideas and

arousing feelings. They have been seen as symbols which express definite meanings. The meaning

of a particular color may depend largely on the culture of individuals or their

economic social status. Results of cross-cultural studies have found both similarity and dissimilarity in colour preferences and colour meaning associations.

Packaging

Packages are found to attract attention (Underwood by dismissing such non-verbal signs as

colours, the attention to verbal signs can be increased. Pictures on packages are emphasized to

attract attention, particularly when consumers are not very familiar with the brands

Quality

Product quality was an important factor that motivated a customer to make a purchase.

However, product quality was not solely related to the product itself. The major reason for this was

that customers also judge the degree of quality based in part on the period of time of the products

usage. The consumers perception of a quality was a strong influence on consumer decision-

making. All other factors influenced the customer’s perception of quality regarding this particular

product.

Product knowledge

Conceptualization of consumer knowledge that proved to be a major theoretical advance. This

conceptualisation clarified the meaning of “knowledge” and “expertise” and spawned

numerous studies. Consumer knowledge has two major components-familiarity, defined as the

number of product related experiences that have been accumulated by the consumer ,and

expertise ,defined as the ability to perform product related tasks successfully. In general,

increased product familiarity results in increased consumer expertise.

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Product bundle

Consumer preference for product bundles:The role reduced search costs-Judy Harris,Edward

A.Blaiv-The aim of this study was to analyse the factors that might drive consumer

preference for bundles versus individual items.The other factor discussed was the potential to

reduce search and assembly costs.In this article the researchers used exploratory interviews and

two laboratory experiments.The researchers used exploratory research with three

different focus group.Members of churcg group(aged 55 to 70 years),evening MBA students at

urban university(aged 26 to 52 years,68%male),and undergraduate computer students at an urban

university(aged 21 to 33 years,61%female).Finally they concluded that bundle choice will reduce

search effort than when it will not ,particularly among consumers who are less motivated to

process information.

Brand image

The brand image was an extrinsic attribute of the product.He believed that the brand

image has less impact compared to intrinsic attributes. The brand image served as a

channel for providing certain information to the customer. The brand image was considered to be

a consistently favourable factor as a risk reliver and the consumer has a more positive attitude

toward the product with a brand image than toward the product with no brand image.

Company image

Several studies demonstrate that corporate image affects consumer product judgements and

responses in a positive manner.

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Price

In today’s market, price is often a dominant factor guiding .Understanding the role of

price in general and determining its effect on consumer brand choice has been the cornerstone

of brand choice research .When faced with a buying decision in a product category, consumers

observe a price, take into account their current inventory position in the category, and make the

brand/quantity decision that maximizes immediate utility. “Price, in the absence of other cues, was

a powerful factor in determining how the brands were perceived”.

Consumers face brands with varying prices and perceived quality levels, and make a choice

consistent with the relative importance attached to both attributes When evaluating a brand,

consumers who have a stronger price-reliance schema, compared to those who have a weaker

schema, will rely more heavily on price cue.

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SCOPE OF STUDY

The scope of study on impact of advertisement on consumer buying behavior is the wide variety of

activities consumers engage in as they research, buy, use, and dispose of products. This is a topic

of interest for marketers and other researchers who examine how consumers behave in the market.

This information can be important for the development of products and ad campaigns that meet the

needs of consumers effectively. Psychologists and anthropologists study consumer behavior for

more theoretical reasons, with an interest in how it interacts with other aspects of human

behaviors.

Consumers move through a variety of steps as they buy products. The scope of consumer behavior

examines the decisions consumers make and how they make them, looking at the what, when,

where, why, and how of product consumption.

Companies also want to know when consumers make purchases, looking at the frequency of

purchases and the conditions under which they occur. Study on the scope of human behavior, for

example, informs the use of end cap displays near cash registers to tempt people into last-minute

purchases. Research on consumers shows that small item like candy bars that may not have been

on a consumer's list of planned items might be added to a shopping basket if presented at the end

of the shopping process.

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http://www.wisegeek.com/what-is-consumer-behavior.htm


OBJECTIVES OF THE STUDY

To learn customers preferences among the various modes of advertisements.

To know the reason for purchasing the particular brand of Smartphone.

To study whether the media plays any influences in changing the brands of Smartphone.

To Study Customer perspective towards advertisement of Smartphone’s.

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RESEARCH METHODOLOGY

Research Design : Descriptive

Data Source : Primary data

: Secondary data

Research Instrument : Questionnaire

Sample design : Simple random design

Sample size : 100

Sample location : Durg

: Bhilai

Sample element : Students

: Business class

: House hold

: Service class

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SAMPLING UNIT

Sampling Unit is the total number of samples differed in different locality.

Sl. No. Classes No. of Classes

1. Students of Shoolini

University, Bajhol, Solan

50

2. Students of Govt. Degree

College Solan

50

Total 100

Data have been collected through the survey method while surveys have been conducted in one

city:

i) Solan

ii) Bajhol

The data collected was both from the primary and secondary source. The primary data was

collected through questionnaires and was collected personally.

The secondary data was collected through books, magazines, company website and other websites.

All the area had segmented according the population of this area. I have considered 100 as sample

size.

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HYPOTHESIS TESTING

The difference among the parameter which influences the perception of consumers towards buying of Smartphones is significant.

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DETERMINANTS STUDENTS OF SHOOLINI

UNIVERSITY, BAJHOL, SOLAN

STUDENTS OF GOVT DEGREE

COLLEGE, SOLAN

STILL IMAGE

MOVING IMAGE

ENTERTAINMENT

INFORMATION

LANGUAGE

CELEBRITY

INTENSITY

NATIONAL ADS

LOCAL ADS


Questionnaire

I am Preeti Tomar pursuing IV Semester of Master of Business Administration from Shoolini

University, Bhajol, Solan (H.P.). I am doing my research report on “ A Study on Impact of Advertisement on

Consumer Buying behavior of Smartphones” as a part of my course curriculum. For this I require you to

please fill this questionnaire.

Name: ……………………………….................................

Sex: a. Male [ ] b. Female [ ]

Age:

a. Below 20 [ ]

b. 20 to 30 [ ]

1. From where do you get information about Smartphones ?

a. Television [ ]

b. Newspapers [ ]

c. Magazines [ ]

d. Internet [ ]

e. Peers (friends/family) [ ]

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2. Which form of advertisement do you like more for buying smartphones?

a. Still image (Magazines / Newspapers) [ ]

b. Moving image (Television / Internet) [ ]

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3. For you advertisement is a source of ..

a. Information [ ]

b. Entertainment [ ]

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4. Does an entertaining advertisement influence your opinion about buying of smartphones?

a. Yes [ ]

b. No [ ]

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5. Does information provided in advertisement affects your opinion about smartphones?

a. Yes [ ]

b. No [ ]

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6. Does language used in advertisement affects your opinion about buying of Smartphone or not?

a. Yes [ ]

b. No [ ]

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7. Does presence of any celebrity in the advertisement affects your opinion about buying of

Smartphone or not?

a. Yes [ ]

b. No [ ]

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8. Does intensity of the advertisement affects your opinion about buying of Smartphone or not?

a. Yes [ ]

b. No [ ]

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9. Do you think advertisement helps in increasing sales of any product?

a. Yes [ ]

b. No [ ]

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10. Which type of advertisement influences you more?

a. National advertisement [ ]

b. Local advertisement [ ]

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SUGGESTIONS

Advertisement should be made with keeping the determinants of effectiveness in

mind.

Advertisement should be according to the product and its suitability with different

age groups.

To make advertisement more effective all the determinants of effectiveness should

be taken care of in reference to consumer buying behavior.

Advertisers should develop new and more effective ways of advertisement and

carry on research and analysis to study consumer buying behaviors as buying

behavior changes on time to time.

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Consumer Behaviour Final

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