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Procedia Economics and Finance 11 (2014) 230 238

Symbiosis Institute of Management Studies Annual Research Conference (SIMSARC13)

Advertising: A Fusion Process between Consumer and Product


Arijit Adhikarya*
a

8/22 Naskar Para Lane Dhakuria, Kolkata, West Bengal

Abstract
The study of consumer behavior explains how individuals make decision to spend the resources (time, money etc) available to
them for purchasing an item for consumption. Many questions arise in the mind of the consumers before buying a product. It may
be personal or product related. During the decision making process the consumer passes through five stages. The stages are
(Need recognition Information search Evaluation of Alternatives Purchase decision Post purchase Evaluation).
Consumers search for information before buying any product or service. According to the decision making process consumers
evaluate the alternatives available to him before purchasing the product. Advertising plays an important role during the phase of
information search. A company in the market always looks for the prospective client to sell their goods or service they are
offering in the market. Advertising serves the company as a medium of communication. The marketers can penetrate the
untapped market. The number of prospects increases so as the revenue collection for the company.
This empirical research paper tries to find out the effect of advertisement in the decision making process among the consumers.
The objectives of the study are1.

Advertising influences the consumer decision making process.

2.

Kind of product that consumers purchase on the basis of advertising information.

3.

Previous knowledge about the product is more important than advertising or not.

4.

Factors other than advertising influences the decision making process.

Research is been dependent on primary data. Data has been collected from Kolkata metropolitan only. A closed questionnaire has
been developed to collect the primary data. Data was collected from college students and office employees by the process of
snowball sampling. By their reference data was collected from their colleagues and relatives also. Numbers of respondents were

2212-5671 2014 Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and/or peer-review under responsibility of Symbiosis Institute of Management Studies.
doi:10.1016/S2212-5671(14)00191-9

Arijit Adhikary / Procedia Economics and Finance 11 (2014) 230 238

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180.

2014 Elsevier B.V. This is an open access article under the CC BY-NC-ND license

2013 The Authors. Published by Elsevier B.V.


(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection
of Symbiosis
Symbiosis Institute
Institute of
of Management
Management Studies.
Studies.
Selection and/or
and/or peer-review
peer-review under
under responsibility
responsibility of
* Corresponding author.

E-mail address:arijitadhikary89@gmail.com
Keywords:Advertising; Companies; Learning; Symbols; Semiotics

1. Introduction
The manner in which a consumer makes purchases has long been an interest to marketing researchers and
practitioners. Learning is the process by which experience leads to a change in knowledge, attitude and/or behavior
and learning begins from a consumers development of favorable or unfavorable attitudes towards a company and its
products. Advertising plays an important part in the learning process among the consumers. Therefore consumers
may change their buying behavior through learning and one source of learning is advertising which can affect the
consumers purchase behavior. Estes (1954), Bush and Mostellerl (1955) proposed the stochastic learning model, and
showed how it could depict consumers purchase behavior. Kuehn (1962) presented facts that a buyer's behavior was
a learning behavior. Erdem and Keane (1996) studied the effects of past consumption knowledge and advertising
exposure on consumer uncertainty about brand choice and indicated that learning is an important factor to influence
purchasing behavior. Due to the existence of advertising the marketing field is extensively competitive. If product
quality meets the expected quality or is even better, then the customer is more likely to repurchase the product;
otherwise, he may abandon it. If a consumer discards this brand of product permanently, he or she is a departure.
Consumers may also become unsatisfied due to changes in their habits, age, income, etc. So the advertising is build
keeping in mind the nature and habit of the consumer or the end user. A consumers departure is not merely
determined by the duration of his usage. Major determinants are past experience and purchase behavior. Advertising
can influence the purchase behavior of a consumer not the experience that a consumer gets after using the product. It
solely depends on the quality of the product. Shaw and Clarke (1999) clearly recognize the role of information,
literature, advertising and labelling for the formation of attitudes and behavior.

2. Literature Review
2.1. Advertising as Knowledge Base Function
Advertising campaign by the companies generally motivates the consumers to purchase. Dan Horsky and
Leonard S. Simon (1984) explained the effects on profitability occur when a firm advertises greatly when the
product is introduced and decreases advertising as the product moves through its life cycle and interpersonal

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communications take effect. The function of advertising may be different at varying stages of the life cycle for
the consumer as well as the marketing managers (Gerald J. Tellis and Claes Fornell, 1988). The processing of
information by the consumers varies. Recent evidence suggests that advertising effectiveness can be affected in a
specific time of day when consumers encounter an advertisement (Jacob Hornik1988). Jacob Jacoby (1984)
suggested that information overload is not possible because consumers will stop processing the advertising
information before they are overloaded. Contradictory opinion is there in the literature of advertising research
like recent study by the researchers suggests that consumers may be unable to stop short of overloading
themselves when faced with a sufficiently rich information environment (Kevin Lane Keller and Richard Staelin
1987). The sheer number of advertisements that are processed during television viewing can have an unfavorable
impact on a given advertisements effectiveness (Peter H Webb 1979). Persuasion as well as learning can depend
on the capacity allocated to a communication (Anthony G. Greenwald and Clark Leavitt 1984). To gain
knowledge the consumers as well as the marketers need to assess the environment of the market. If consumers
are unwilling and unable to dedicate the attention necessary for carefully evaluating an advertising claim then
persuasion can depend heavily on reactions to the advertising features (Scott B. MacKenzie and Richard J. Lutz
1989). Regarding knowledge acquisition from the advertisements the information overload argument has
continued, although with somewhat different players (Debra L. Scammon 1977).
Consumers are motivated to search for related information and to process it more carefully when involvement is
high (Richard E. Petty and John T. Cacioppo and David Schumann 1983).Russell W. Belk (1988) and other
research scholars suggested that there is a positive affinity between self and product, it is possible that
advertising appeals congruent with self image will be more useful in terms of brand memory, brand attitude and
purchase intentions. Mark Snyder explains the extent to which the advertisements success depends upon the
degree to which a reader is a self monitored. Marketers sometimes use semiotics which is used to clarify
advertising meaning of a very familiar symbol Roland (Alsop 1987). There are many incidents where the
consumers face the dilemma of purchasing the product after acquiring knowledge from the advertisements. In
comparison, for many knowledge-based goods and services, it is not easy to determine a precise or absolute
valuation (Abrahamson, 1996; Banerjee, 1992; Schwarzkopf, 2006).

2.2. Consumers as Innovators Consumers use different products during different occasions. Using different brands of same product is itself an
experience for the consumers. According to Olshavsky (1980) and others the problem increases because of an
increasing rate of adoption of innovations among the target consumers, causing a rapidly shortened product life
cycle which ultimately creates a competition in the market and the companies face the challenge. The most
important contribution in the field of research of the study of diffusion of innovations was a book of the same

Arijit Adhikary / Procedia Economics and Finance 11 (2014) 230 238

name, written by Everett Rogers in 1962 and updated in 1983. In this book it has been clearly narrated by the
author about the bonding of the product with the consumers. Innovation was described by Robertson (1986) has
been used extensively in the study of marketing research. It classifies the term innovations as (1) continuous, (2)
dynamically continuous and (3) discontinuous. So from the writings of Robertson we can say innovation is a
dynamic process. Innovation by the consumers gives confidence to the companies to build new brands and
encourages the entrepreneurs to start new business in this competitive market. Hassan (1990) has developed an
elaborate list of attributes that may be utilized by the potential adopters to analyze a particular innovation for
given situation. Consumer behavior research and social marketing have become a well-developed research area;
papers of authors such as Bazerman (2001), Kline (2006), Felcher (2001) have shown that they have been
written from the point of view of organizations, or producers, rather than consumers.

2.3. Consumers as AdoptersElizabeth C. Hirschman (1980) on an individual basis every consumer is to some extent an innovator all of us
over the course of time in our lives adopt some objects or ideas that are new and in our perception. In the phase
of innovation the consumer finds some new brand and products for the use of its own. The consumer takes time
to adopt with the new product or service. According to some of the researchers like John M Antil (1988), the
adoption of new product by the consumer involves both psychological and behavioral commitment to that
product or time. The market is competitive because of consumers choice of using updated or new kind of
product and services. The numbers of adopters are also increasing due to this changing behavior of the
consumers. Ram C. Rao and Frank M. Bass (1985) explained the fact that rate of adoption increases as the
number of adopters increases. Douglas K. Hawes (1987) explained that some of the research about diffusion has
produced mathematical models that can be utilized cross culturally to predict the rate of adoption of products
such as television. Linda Price, Lawrence Feick and Daniel Smith (1986) said that some research indicate that
earlier adopters use both mass media and interpersonal sources like communication more than later adopters.
Peter L. Wright and Barton Weitz (1977) even if time pressures are not so great as to rule out some use of
external information during decision making, they can still lead consumers to adopt simpler product evaluation
strategies, such as relying on small number of attributes in comparing alternatives.

3. Objective of the study


This research paper tries to find out the possible factors that are affecting the consumer decision making process.
The advertising industry is communicating the product and the services to the customers through advertisements. By
means of advertisement the companies are expanding their business. Consumers time and again face great

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uncertainty, lack of knowledge, flawed information and complex decisions towards products and services in today's
global market (Andreasen, 2002; Brenkert, 2002).
This empirical research paper tries to find out the effect of advertisement in the decision making process among the
consumers. The objectives of the study are1.

Advertising influences the consumer decision making process.

2.

Kind of product that consumers purchase on the basis of advertising information.

3.

Previous knowledge about the product is more important than advertising or not.

4.

Factors other than advertising influences the decision making process.

4. Methodology
The research was conducted on consumers and employees of different organizations by me. One structured closed
questionnaire was developed for conducting the study. The questionnaires were divided into two parts. First part was
designed to obtain the personal information about the respondents age, income, profession and gender. The second
part of the questionnaire contained close ended questions which is related to the factors that a consumer looks in a
particular advertising.
4.1. Sampling Plan
Snowball sampling was used and 180 respondents filled up the questionnaire. The respondents chosen were
common people. Data was collected from office employees also by using references from various sources.
Questionnaires has been distributed to the respondents and also mailed to them to get the necessary
informations. Data were analyzed on the basis of responses provided by 180 respondents.
4.2. Analysis of Data
The data collected by questionnaires were coded and cross tabulated keeping in mind the objective of the study.
The data was arranged and given percentage on the base of information that was gathered. In a table the data was
arranged in a descending order. Having the point that gained the highest percentage was ranked first among the
variables compared. No statistical tool has been used to analyze the data.

5. Major Findings
Advertising has the ability to evoke responses from consumers and can be effective at appealing to consumers

Arijit Adhikary / Procedia Economics and Finance 11 (2014) 230 238

decision making process. In this research, an effort has been made to analyze the effect of advertising in decision
making process. The paper has been developed to explain the underlying mechanisms that constitute the regulation
of consumption process and how it can be stimulated through advertising. Results from this research suggest that the
use of advertisement may evoke positive responses from the consumers. Positive responses from the advertisement
were significantly related to more favorable attitudes towards the advertisement. In turn, more favorable evaluations
of the advertisement were related to increased behavioral intentions.
Advertising depends on certain factors like emotional responses to advertisements can bring out such a liking for
the product (Lavidge & Steiner 1961). In addition to a consumers outlook towards the advertisement,
rationalizations can lead to the intent to consume or purchase of desired products. Most of respondents gave an
opinion that advertising influences the decision making process. Factor like previous knowledge of the product or
service is more important for the consumer than advertising. The companies therefore need to look after the quality
of products they are offering in the market. After getting the opinions from the marketers it has been found that
competition among the companies in the market depends on quality of the product.
Consumers in the market prefer to buy electronics after viewing an advertisement. FMCG (Fast Moving Consumer
Goods) products and Automobile comes next respectively. The least proffered item is pharmaceuticals. Even they
dont purchase pain killers or cough syrup after viewing an advertisement. They depend on the advice of the doctors.
This is one of the valuable outcomes of the research paper.
6. Discussion
The study indicates the effect of advertising on consumer decision making process regarding purchase of product or
service from the market. The marketing segment of every company needs to generate awareness about the brand
among the various age levels and advertising is the best alternative among all the variables in the segment of
marketing. There are some variables also depending on which the consumers take decision. One of them is the past
experience of a consumer after using the product. Consumers give more importance on this factor in comparison
with advertising. The companies need to look after the quality level of the product also to be competitive in the
market for a prolonged duration.
7. Conclusion
The study reveals that advertising influences the decision making process. Previous experience about the product is
more important than advertising. During buying electronic products advertising influences the most. Brand name
influences the most during purchase decision process.

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8. Scope for Further Research


Nevertheless the findings of the study are clearly expressed by the respondents and this study can be considered as a
broad indication of the consumers and the executives mind on the effectiveness of advertising and the basis for
more rigorous research in future when the competition intensifies in Indian market.
Appendix
Table 1- Advertising on Decision Making Process
Yes
No

70%
30%

Table 2- Previous Knowledge/ Advertising


Previous Knowledge
Advertising

81%
19%

Table 3- Type of Products


Electronics
Automobiles
FMCG
Pharmaceuticals

39%
31%
20%
10%

Table 4- Other Factors


Brand Name
Group Influence

27%
21%

Brand Ambassador

20%

Sales Promotion

17%

Festivals/ Occasion

15%

Annexure
1.

Age group
15-24 ( )

2.

25-34 ( )

Employee/Student
Employee ( )

3.

35-44 ( )

Monthly Income

Student ( )

45 -54 ( )

55 and above ( )

Arijit Adhikary / Procedia Economics and Finance 11 (2014) 230 238

Rs 15000-20000 ( )
Rs 20000-40000 ( )
Rs 40000-60000 ( )
Rs 60000 above ( )
4.

Have you purchased anything new recently?

5.

Yes ( )
No ( )
What kind of product you have purchased?

6.

Electronics ( ) Automobile ( )
Others ( )
How you came to know about the product?

7.

Advertising ( ) Peer groups ( )


Do you feel advertisements have any influence on your purchase decision?

8.

Yes ( )
No ( )
If no, what factor influences the most?

9.

Do you feel advertisement can influence decision making process?

Yes ( )
No ( )
10. Is previous knowledge more important than advertisements?
Yes ( )
No ( )
11. Which is more important advertisement or previous knowledge?
Advertisement ( )
Previous Knowledge ( )
12. Will you purchase anything after viewing an advertisement?
Yes ( )

No ( )

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