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Executive Summary of Effect of Advertisement on Consumer Behaviour

The research study covered the topic of "Effect of Advertisement on Consumer behaviour “where it aimed to highlight the impact that advertisement activities have on the behaviour of the consumers. The following sections of the research have provided the study where it has aimed to determine the impact of promotion and advertisement undertaken by a firm has on consumer behaviour. Along with this, the study illustrated a review of the literature covering various themes. The study highlighted the research methodology covering the research design data collection, research approach and research philosophy. Along with this, the research depicted the findings in the conclusion section with some of the key recommendations. The report highlighted the findings that advertisement surely has a direct and positive impact upon the behaviour of consumers.

Table of Contents

Introduction

1.1 Background

1.2 Research aim

1.3 Research objectives

1.4 Research question

Literature review

Research methodology

Findings from secondary data analysis

Discussion

Conclusion

6.1 Recommendations

6.2 Limitation

References

1. Introduction to Effect of Advertisement on Consumer Behaviour

1.1 Background of Effect of Advertisement on Consumer Behaviour

Promotion and advertisement are processes undertaken by a company to create awareness in the target market and potential consumers about the particular brand, products, or even the services offered by a company. Advertisement is considered to be a type of promotion that is paid in nature and helps the marketer to reach out to the potential market or the target market (Yusof et al., 2017). It involves the use of various promotional mediums such as television, magazine, newspaper, radio, print advertisements and even digital media advertisements as well. 

Advertisement is therefore considered to be one of the most crucial aspects of marketing and has a great impact on consumers. In fact, the activities that are undertaken by a company in the area of advertisement and promotion have the ability to affect the behaviour of the consumer while making a purchase decision. Through advertisements, the marketer tries to create a positive image of a product, service, or brand in the minds of the target audience. This directly influences the perception of the target market about the company and further directs a positive behaviour towards the product and services. In this respect, it is very important to study the effect of advertisement and promotion on consumer behaviour by any company (Zheltukhina et al., 2019). The study on determining the effect of promotion and advertisement on the behaviour of the consumer while making a purchase decision would help the marketers in devising advertisement strategies and taking decision.

1.2 Research Aim

The research study aims to determine the impact that promotion of an advertisement undertaken by a firm has on consumer behaviour.

1.3 Research Objectives

The following are some of the key research objectives for the research on the topic” “:

  1. To evaluate the advertisement and promotional activities of a firm
  2. To understand the concept of consumer behaviour and factor affecting it
  3. To determine the effect of advertisement on the purchase behaviour of consumers

1.4 Research Question

  1. What is meant by advertisement and promotion?
  2. What is meant by the concept of consumer behaviour and factor affecting it?
  3. What is the effect of advertisements on the purchase behaviour of consumers?

2. Literature Review of Effect of Advertisement on Consumer Behaviour

Various researchers have directed their research in order to study the impact of advertisement on various aspects of consumer behaviour and also the way in various promotional activities influence and shape the mind of the consumers.

Elizabeth et al. (2019) have undertaken research to study the aspect of promotion and advertisement as undertaken by a company. According to the authors, advertisement involves various activities organised by a company to reach to potential customers. The authors further added that through advertisement, a company tries to spread awareness of the brand, products and services that further adds to the effectiveness of the overall marketing strategies. In addition to this, the authors have also pointed out the use of various mediums of advertisement and promotion where the traditional medium of the advertisement has been discussed by the authors in detail. As per the authors, the traditional means of advertisement that include television, radio and print advertisements are proven to be effective for the success of a company. Along with this, the authors have also highlighted the significance of each of the medium by linking it with the marketing and the organisational strategy of the company. The findings of the study undertaken by the authors have presented the way in which such forms of advertisement used across the world by various companies influence the target audience and provides them with the required information about the product and the services. 

Avadhani (2020), on the other hand, illustrated a diverse set of views where the author has tried to explain the meaning of advertisement and promotion is a different manner. According to the author, advertisement is considered to be a paid form of promotion where the marketer makes use of some of the most effective channels to reach out to potential consumers. The author has further highlighted the digital advertisement where, as per the author digital advertisement involves the use of information and technology to promote the products and the services of a company. The author has further added to the views by stating that digital advertisements offer the advertise of reaching out to the potential consumers who are located at far off places and where the use of traditional forms of advertisement may not be possible. Sasiraja et al. (2016) have supported the views as presented by the author. The authors have also proposed the use of digital advertisement and its impact upon the success and the effectiveness of the company.

Consumer Behaviour

Many pieces of literature can be analysed to find out details about the concept of consumer behaviour where a number of researchers have directed their study to this field. Szmigin and Piacentini (2018) have undertaken a detailed investigation to gain an understanding of the aspect of consumer behaviour. According to the authors, consumer behaviour is defined as the way in which an individual or a group of consumers reacts towards the activities, strategies products and the services of a company that are directed by a company to gain a positive outcome. The authors have, therefore, illustrated consumer behaviour in the form of behavioural and mental responses. In addition to this, the authors have also added that the aspect of consumer behaviour aims to study the impact that particular activity or decision of a company would have on the overall reaction of the end consumers. Javornik (2016) has also provided support to the author’s point of view.

Factors Affecting Consumer Behaviour

Various authors have also depicted the factors that affecting behaviour of the consumers. Vu et al. (2016) have also tried to undertake research in this area where according to the author, one of the key factor that has a direct impact on the consumer behaviour is the psychological factor. As per the authors, the responses and the behaviour towards the brand, product and the services are directly influenced by the perception that the consumer holds towards the company and its offerings. Along with this, the authors have also pointed out the perception as held by the consumer that further directs the purchase decision taken by the company.

On the other hand, Willems et al. (2019) have highlighted that personal factors have an influence on the behaviour of consumers. According to the authors, the personal factor has the ability of directing the actions of the potential consumer towards the company and its products. The authors have further proposed that the personal factor include occupation, economic circumstance, the age as well as the lifestyle stages of the people. Along with this, the authors have also depicted the importance of lifestyle, self-concept and the personality of people while studying the aspect of consumer behaviour. Krishna and Balasubramanian (2018) have also provided support to the viewpoint of the authors by depicting the personal factors affecting behaviour of the end consumers.

Advertisement and Consumer Behaviour

Amponstira and Bajracharya (2018), on the other hand, have highlighted promotion and advertisement as a crucial factor for influencing the behaviour of the consumers. As per the authors, advertisement engages the consumer toward the information provided for the product. The authors further added that this way the target consumer get to know details about the benefits of the product and make a positive purchase decision for it. Renuka (2016) has also presented similar views where the author has also identified advertisements to be an important factor that has an influence on the behaviour of the consumers.

3. Research Methodology of Effect of Advertisement on Consumer Behaviour

The research methodology is defined as the techniques, tools and procedures that are adopted by the researcher to undertake the research on a particular topic and further meet the research aims and objectives while finding answers to the research questions. The research methodology is crucial for the detailed investigation of a topic and to ensure that the researcher has a well-defined plan in place for progressing with various aspects of the research. Research methodology, therefore, includes research design, research approach, research philosophy, data collection and also the way in which data is to be analysed (Kumar, 2019).

The research on the topic "Effect of Advertisement on Consumer behaviour “is qualitative in nature where it will aim to explore the effect of advertisement on the behaviour of consumers. The research will be based n the qualitative findings without any significant analysis of qualitative data. Along with this, the research would be based on the exploratory research design as an exploratory research design is applied to undertake study in various qualitative topics and would help in generating a theoretical idea of the problem as a part of the research (Attia& Edge, 2017). Along with this, another important aspect of the research methodology is the research design where the study on the topic "Effect of Advertisement on Consumer behaviour" would use the inductive research approach. This is suitable for this research as it would help in the creation of a new theory through the analysis of the information (Attia& Edge, 2017).

In addition to this, the research methodology includes the research philosophy where in this research the implementation of the positivism philosophy would be done. The positivism philosophy is optimum for research on the study “Affect of Advertisement on Consumer behaviour “as it would help in analysing factual information (Clandinin et al., 2017). Lastly, the data collection which aims to gather information for the purpose of research analysis and interpretation is a part of the research methodology. The study on determining the "Effect of Advertisement on Consumer behaviour" would be based on the secondary data collection. The secondary sources of information would be explored including the books, journals, articles, various reports of companies and any other credible source to gather information on the topic. To collect secondary data, key words and Boolean would be made. Along with this, filters, subject headings, phrase searching would be done to gather more accurate information (Vu et al., (016). The thematic analysis would be used to analyse and evaluate the secondary sources of information and findings for the research would be generated.

4. Findings from Secondary Data Analysis

The analysis of the secondary sources of information has provided with details about the area of study. The analysis is performed as per the following thematic analysis

Consumer Behaviour

Nguyen (2018) has illustrated a unique set of views while covering the aspect of consumer behaviour. According to the author, consumer behaviour aims to study the way in which the potential consumers would take decisions about their needs, wants and preferences in a brand, product, or service. The author further added that through the study of such behaviour the company also gains information about the way in which the consumer plans the purchase, use and disposing off the goods.

Factors Affecting Consumer Behaviour

Ramya and Ali (2016) also depicted another psychological factor that has an impact on consumer behaviour and includes belief and attitude. The authors have also proposed that the positive beliefs and the attitude that the consumer holds towards the brand, directs a positive outcome and response from the side of the consumer and is beneficial for the company as well.

Tyagi (2018) has highlighted the role of advertisement in influencing consumer behaviour where any authors have drawn similar findings. Suresh and Tandon (2018) have undertaken a study to find out the factors affecting consumer behaviour where the case study of the Ponnani Municipality on Kerala was taken. The analysis performed in the research highlighted that advertisements played a crucial role in directing the behaviour of consumers. The authors have added that through advertisement, the marketers try to build a positive perception in the minds of the consumers where these directly impact the other psychological factors affecting consumer behaviour. Furthermore, as per the authors, these factors together provide the company with the required outcomes of their advertisement activities.

Jiang and Jones (2016) have also undertaken research to find out the factors that have a direct impact on the behaviour of the consumers. According to the authors, the social factor occupies a significant position in influencing the behaviour of consumers. The authors have further undertaken a detailed investigation and analysis of the social factor and highlighted a number of social factors that may have an impact. One of the social factors highlighted by the authors is the family where the family plays a crucial role in making a purchase decision. Along with this, the authors have added that the reference groups such as peer groups and friends have also direct influence while the status and the role played by the consumer in the society can also be considered as crucial for the study of consumer behaviour. 

Effect of Advertisement on Consumer Behaviour

Fota et al. (2020) have undertaken research to highlight the effect of advertisement on the behaviour of consumers. The analysis undertaken by the authors has highlighted that use of advertisements has been helpful for influencing people and persuading them to buy the products of the company. The research has also indicated that it is important for the companies to create informative and attractive content for each of the advertisements which would help in changing the perception of the consumer towards the company and thus building strong image and goodwill. 

Jovanović et al. (2017) have highlighted that integrated marketing communication is influential in generating positive behaviour from consumers. As per the authors, the consumers are influenced by the integrated marketing communication campaign implemented by the company throughout all the mediums of advertisement and thus persuade the consumer to make a purchase. Salman et al. (2017) have also presented the positive relationship between advertisement and consumer behaviour where the analysis of the research undertaken by the authors also indicates that consumer tends to respond positively when influenced through effective advertisement.

5. Discussion on Effect of Advertisement on Consumer Behaviour

The data analysis and the literature review can be evaluated for the discussion that is as follows:

The analysis of secondary data has provided detailed information about the aspect of advertisement where it has covered aimed to highlight the concept. As per the analysis, advertisement is considered to be a paid form of promotion where the marketer makes use of some of the most effective channels to reach out to potential consumers. The views of various authors as indicated in the literature review also highlight similar statements where, as per the authors, through advertisement, a company tries to spread awareness of the brand, products and the services which further adds to the effectiveness of the overall marketing strategies

The data analysis has highlighted that consumer behaviour is the response from the side of the consumer towards the products and the services. The majority of the authors have defined it as the study of the behaviour, responses and actions undertaken by the consumer including the purchase of the product and the decision making involving the same. The literature review highlights similar views where the study undertaken by various authors as indicated in the literature review also explains consumer behaviour as the branch of study that explores the reaction of consumers to various factors.

Along with this, the research has also explored the factor affecting consumer behaviour where data analysis has indicated that psychological gator and advertisement made by the company are a major factor influencing behaviour of the consumer. The literature has supported that advertisement influences behaviour of consumers but has provided a diverse set of views where it has covered other factors such as personal and social factors and their ability to influence the behaviour of consumers.

Data analysis also indicates the relationship between advertisement and consumer behaviour where it highlights that there is a positive relationship between both. The findings from the literature review also provide similar viewpoints where the majority of the authors have added that advertisement positively impacts the mindset of the target consumer and therefore directs positive actions and responses to a company.

6. Conclusion on Effect of Advertisement on Consumer Behaviour

The above research has helped in understanding the effect of advertisement on the behaviour of the consumers where the above sections of the report have highlighted the research questions along with research objectives. In addition to this, the research study has also provided with the review of literature where a number of articles and books have been explored to find out the viewpoints of various authors and researchers. The following are the findings from the research:

  1. What is meant by advertisement and promotion?

It can be concluded that advertisement is a paid form of promotion where it aims to target the potential consumers and direct positive responses from them towards the brand, products and services.

  1. What is meant by the concept of consumer behaviour and factor affecting it?

It can also be concluded that consumer behaviour is the study involved in understanding the reactions of the consumer towards a particular action of the company and also the decision-making process involved at the time of purchase. The factors affecting consumer behaviour includes psychological factor, personal factor, social factors and promotional and advertisement activities.

  1. What is the effect of advertisements on the purchase behaviour of consumers?

Lastly, it can be concluded that advertisement has a positive effect on the minds of the consumer and thus leads to positive consumer behaviour.

6.1 Recommendations on Effect of Advertisement on Consumer Behaviour

The research has helped in drawing recommendations that are as follows:
1. Increase the advertisement expenditure- It is recommended to the companies that they should increase the expenditure made in the area of advertisement by focusing on the creative and the modern tools and techniques for advertising. 

  1. Personalising Adverts- Another recommendation to the company is to personalise the adverts where it would help the companies in increasing the engagement of the potential market with the brand (Vu et al., 2016).
  2. Targeting the needs through advertisement- The companies are also recommended to target the needs, wants and expectations of consumers through the advertisement so that it has a positive impact upon the minds of the consumers.

6.2 Limitation on Effect of Advertisement on Consumer Behaviour

The research has a limitation where the secondary resources used to collect information were not based on the purpose of this research study.

References for Effect of Advertisement on Consumer Behaviour

Amponstira, F., &Bajracharya, R. D. (2018).Impacts of advertising on consumer behaviour. International Journal of Research5(19), 507-522.

Attia, M., & Edge, J. (2017). Be (com) ing a reflexive researcher: A developmental approach to research methodology. Open Review of Educational Research, 4(1), 33-45.

Avadhani, C. L. (2020).Healthcare advertisement (promotion)–ethical and legal issues-Applicability of Indian laws-An analysis. Asian Journal of Multidimensional Research (AJMR)9(2), 21-29.

Clandinin, D. J., Cave, M. T., &Berendonk, C. (2017). Narrative inquiry: A relational research methodology for medical education. Medical Education, 51(1), 89-96.

Elizabeth, H. J., Millward, G., &Mold, A. (2019). ‘Injections-while-you-dance’: Press advertisement and poster promotion of the polio vaccine to British publics, 1956–1962. Cultural and Social History16(3), 315-336.

Fota, A., Steinmann, S., Schramm-Klein, H., & Wagner, G. (2020).The impact of rural and urban advertising and brand context on attitude towards the brand.In International Conference on Advances in National Brand and Private Label Marketing (pp. 74-81).Springer, Cham.

Javornik, A. (2016). Augmented reality: Research agenda for studying the impact of its media characteristics on consumer behaviour. Journal of Retailing and Consumer Services30, 252-261.

Jiang, P., & Jones, D. B. (2016). An exploratory study of factors affecting consumer international online shopping behavior.In Encyclopedia of E-Commerce Development, Implementation, and Management (pp. 1627-1642). IGI Global.

Jovanović, P., Vlastelica, T., &Kostić, S. C. (2017).Impact of advertising appeals on purchase intention. Management: Journal of Sustainable Business and Management Solutions in Emerging Economies21(81), 35-45.

Khuong, M. N., &Duyen, H. T. M. (2016). Personal factors affecting consumer purchase decision towards men skin care products—A study in Ho Chi Minh city, Vietnam. International Journal of Trade, Economics and Finance7(2), 44-50.

Krishna, R., &Balasubramanian, P. (2018). The significance of factors influencing consumer behaviour towards organic food products in Kochi. International Journal of Pure and Applied Mathematics119(12), 2641-2665.

Kumar, R. (2019). Research methodology: A step-by-step guide for beginners. United States: Sage Publications Limited.

Nguyen, D. H., De Leeuw, S., &Dullaert, W. E. (2018). Consumer behaviour and order fulfilment in online retailing: A systematic review. International Journal of Management Reviews20(2), 255-276.

Ramya, N., & Ali, M. (2016). Factors affecting consumer buyingbehavior. International journal of applied research2(10), 76-80.

Renuka, R. (2016). Impact of advertising on consumer behaviour with special reference to fast moving consumer goods. International Journal of Research in Social Sciences6(12), 666-678.

Suresh, A. S., &Tandon, K. (2018). A study of factors of subliminal advertising and its influence on consumer buying behavior. International Journal of Management Studies, V2(4), 23.

Szmigin, I., &Piacentini, M. (2018). Consumer behaviour. Oxford: Oxford University Press.

Tyagi, A. (2018). A study on factors affecting consumer buying behaviour. International Journal of Business & Engineering Research11.

Vu, T. M. H., Tu, V. P., &Duerrschmid, K. (2016). Design factors influence consumers’ gazing behaviour and decision time in an eye-tracking test: A study on food images. Food Quality and Preference47, 130-138.

Willems, T. M., De Ridder, R., &Roosen, P. (2019). Is consumer behaviour towards footwear predisposing for lower extremity injuries in runners and walkers? A prospective study. Journal of foot and ankle research12(1), 43.

Yusof, N. A. M. (2017). Trademark and advertisement as promotion and communication tools: Similar but not identical. Journal of Science, Technology and Innovation Policy2(2).

Zheltukhina, M. R., Bondareva, N. V., Zelenskaya, L. L., Anikeeva, I. G., Malygina, L. E., &Chistyakov, A. V. (2019). Media promotion role of economic vocabulary: Specific features and functions in presentation and advertisement. Online Journal of Communication and Media Technologies9(2), e201907.

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