A Study of Impact of Advertising on Consumers' Purchasing Behavior

Exploring the Impact of Advertising on Consumer Purchasing Behavior

by Varun Kumar Singh*, Dr. Hemant Kumar Singh,

- Published in International Journal of Information Technology and Management, E-ISSN: 2249-4510

Volume 15, Issue No. 2, Aug 2020, Pages 35 - 40 (6)

Published by: Ignited Minds Journals


ABSTRACT

Advertising is one of the most powerful and important ways that allow to give consumers an idea or ―change their opinion‖ about a certain product or service, and that businesses from all over the world tend to use. Marketing processes in today's business environment are centered on the relationship between a company and its customers. Advertising has long been regarded as a popular management tool for coping with today's competitive markets' quick technical and marketing changes, and this management tool refers to the reanalysis and re-designing of activities and processes both within and outside the business. The advertising business is a social institution that was created to meet the human demand for information about product, brand, and service availability. Recently, there has been a widespread perception that advertising is a form of communication designed to exploit the consumer, and the study discusses advertising, economic social impact of advertising, the function of advertising, consumer attitudes and behaviors, social media advertising, internet advertising, consumer behavior, marketing concept and consumer behavior.

KEYWORD

advertising, consumers, purchasing behavior, marketing processes, competitive markets, management tool, social institution, communication, consumer attitudes, social media advertising

INTRODUCTION

Promotion of goods and services through a mass media is the goal of advertising, which includes paid advertising. Generally speaking, advertising is regarded to be the most important component of a company's total marketing strategy. It has become a key commercial medium in Indian society because of its tremendous exposure and pervasiveness. Using visual or aural persuasion, it encourages people to purchase things or services. If you want prospective customers to know about your product or service, you need to market it. In the past two decades, the advertising business has seen a major shift as a consequence of globalization and changes in consumer purchasing habits. In today's increasingly competitive environment, advertising plays a crucial role. This marketing strategy is used by companies and individuals, as well as religious and charitable groups to either promote a product or a point of view, and may take many different forms. The main focus of event management is the coordination of a wide range of activities. Image management is concerned with a certain person or organization's profile. Rather than a broad audience, internet marketing employs targeted advertising to reach specific groups of people. The ultimate goal of advertising is to persuade customers to do what the advertiser wants them to do, such as visit a shop, sample a product, buy it often, refer it to a friend, etc. Marketers must know how customers react while making purchasing choices in order to communicate in a way that can encourage them to act. Consumers frequently say one thing but do another, thus this is never a simple assignment to do even when they are fully aware of their own innermost motives, and they might nevertheless behave impulsively. Customer behavior makes an effort to go into the psyche of the consumer to uncover these most fundamental and primal motivations. It is the goal of the study of consumer behavior to get a better knowledge of why and how customers make their purchases, as well as the consequences of their choices. Studying consumer behavior is an investigation of how people make decisions about what products to purchase, how long to keep a product or service in use, and how to get rid of it. Also considered is the effect on product and service providers that these procedures will have. Research in psychology, sociology and anthropology, as well as economics, are included into the study of consumer behavior in an effort to better understand individual consumers' needs and desires. In order for marketers to be successful, they must understand how and why consumers' requirements change. What are they? And who are the most probable customers? delivery is advertising. The marketing of advertising is one way. It may be used for selling products and services and may also be used for selling ideas (advertising through institutions). Market enhancement through ads may be planned to increase generic product demand (primary demand) or to increase brand demand. The ads of selective demand seek to stimulate demand for a certain brand that the business works with. In this case, the main goal is to distinguish the advertiser from the rivals' advertised brand. In doing so, they expect the branded brand to raise its intake. For example, competition advertising or comparative advertising

Economic & Social Impact of Advertising

Economists have also studied the impact of advertising on (buyers) sales. Classic books like managerial economics by Joel Dean4 have indicated that there is an indirect relationship between advertising and sales in the shape of an S-shaped sales response 5 curve indicating a lagged response and diminishing sales returns to the scale of advertising, after the optimum level. It is also sometimes noticed that an advertisement for one brand to which a buyer sees and goes to a retail outlet, with the intention to examine and buy the advertised product, may not necessarily result in the sales. The buyer may be more influenced by the features and price of another brand, about which he may or may not be aware, but is exposed to, in the store. This happens mostly in the case of shopping goods, like textiles, garments, furniture, watches and Television sets etc., Moreover, the cumulative effect of remainder advertising can be seen only as a trend over a longer term which the economies have termed as a lagged relationship between advertising and sales. Therefore, if advertising does not result in direct sales it is not something to be apprehensive about. If a customer sees an advertising and remembers it, or if he or she makes a trial buy and likes it, the brand may become one of his or her most-favorite items in his or her "evoked set," according to the "Howard-Sheth model." As a result, both new brand commercials and remnants of earlier brand advertisements are received favourable. This advertising message produced by the marketer falls within the jurisdiction of customer behavior. Marketers think advertising is an effective tool for increasing the demand and sales of a business's goods and services. Advertising and sales are connected, but it's a tangled web. "I know half of every dollar I spend on advertising is waste," John Wanamaker, a prominent American businessman, famously observed. But I'm stumped as to which portion is which. The measuring of the audience's response to advertising is consequently evaluation of advertising programmers should lead to a profitable company. That being said, it's impossible to precisely quantify its performance in terms of how much money was spent on marketing, as stated somewhat hopelessly by Wanamaker. In addition to the advertising they see, prospective consumers make purchasing choices based on a variety of additional economic and social considerations. Advertising's efficacy depends on a number of factors. The issue is that it is impossible for the organization to determine the influence of just one variable. Advertizing is one of a number of elements that contribute to sales volume. As a result, the evaluation of advertising's influence seems to be somewhat varied. An effort must be made, however; notably, in a rising country like India, the necessity to measure the influence of advertising on purchasers emerges both from the ads and from the customers' point of view. A major investment in mass media, such as newspapers, television, and radio, cannot be justified unless marketers are aware of the extent to which their commercials affect potential customers. A study of advertising's influence in the Indian consumer market has been undertaken in light of the preceding background.

The Function Of Advertising

AIDA model (Attention attraction desire action), the first and most important advertisement model since then, is a publicity model credited to a US study advertiser with its fundamental principle of attracting customer attention and interest in order subsequently to generate a market for the commodity offered in a response to specific demands and desires of consumer consumers. The main objective of advertisements is to sell the customer to buy at a profitable price. The convincing aspects of ads also overwhelm the willingness of customers to decide autonomously on the need for purchase by inflaming the deep demand for the product. In this situation, George Lowenstein defines marketing as anti-value production and therefore as a drive-by advertiser to offer the most lucrative commodity that has little bearing of positive or negative significance to the customer. However, in one of its TED discussions, Rory Sutherland, new executive creative director for Ogilvy One, said the additional intrinsic importance of publicity as such to the commodity itself, which would be provided by emphasizing the beneficial qualities of subjective experiences that buyers would otherwise not have enjoyed. Invoking the over-saturation of the planet, intrinsic capital begins to form an overall value, in many respects an ideal replacement for work and the utilization of finite resources this added value may be utilized consistently by turning it into a premium for the branded commodity.

and behavior have been learned directly from the individual. Much combines to create a person's behavior. His society is the first element that affects and forms customer behavior. In the minds of consumers, culture creates strong products expectations. According to the researcher, many national and foreign labels are known and strongly perceived. These perceptions are marked by their history, lifestyles, and environment. In the formulation of customer behavior, ads often play an extremely significant part. Announcements are the inspiration to purchase a certain commodity. Advertising is often a building confidence source. Where the nature and prices of the goods are sought, the consumer is strongly induced. By product assessment and brand identification, buying behavior can also be developed. Throughout the planet, consumers around the brand and brands are emotionally linked to their behavior. Studies have also shown that consumers and their purchasing behavior, with individuals associated with the company, have a great effect on an emotional bond. Publicity shapes people's attitudes through awareness. Cognition is a person's interpretation of the facts conveyed by publicity. The individual's senses, vision, focus, memory, thought, vocabulary, etc. will observe these cognitions. The easiest approach to draw buyers is to consider consumers' social cognitive facets. Social MediaAdvertising New technologies have revolutionized how people consume and produce media. In the past, the media organizations that produced and owned the content were the media organizations that produced and owned the content. Owners of the drug utilize this medium to 'connect' with their customers. Once a piece of media has been created, it may be shared on any of the previously mentioned phases, and new clients/customers are drawn in by commenting, Re-Tweeting, and so on. Customers and content are now engaged in a two-way conversation on the internet, rather than a one-way one. Increasing attention to long-distance interpersonal communication has added another dimension to this rapidly expanding scenario. People are becoming more involved and knowledgeable about their computers. They are able to express themselves at the speed of thought thanks to new technology. Social media is a term used often to describe the rapidly evolving multi-dimensional communication structure. The promoters have a choice: they may take advantage of this new opportunity or risk being left behind. Informal groups like Face book, WhatsApp, and Instagram have more than 200 million members; nevertheless it is becoming clearer that these platforms are not useful for advertising. Ad expenditure for informal groups in the United States is expected to reach $1.17 billion this have been attacked as advertising vehicles. Many people use social media as a tool for entertainment and learning, and they pay close attention to advertising that is both creative and viral. Multi-dimensional, fast-moving statistics use social media sites like Facebook and WhatsApp as a stimulus and specialized tool for learning and social interaction. Internet Advertising The Internet has evolved as a platform for promoting and presenting products and services. In certain ways, the Internet is distinct from conventional advertising mediums. Like • In addition to being an exchange and circulation route, it may also be used as an interchange • Channel. Online shoppers have access to a wealth of information, as well as the ability to place orders and schedule payments. • The Internet is essentially intelligent. Clients can start a shopping procedure by visiting a Web website and afterward tapping on hyper-connected content for more data. It is a two-route correspondence, with the Internet filling in as a supplier of altered substance that addresses a person's issues. • It is trusted that the evasion of notice on the Internet is more overwhelming when contrasted with conventional media in such huge numbers of different ways. This might be because of following reason:- • Many individuals still trust that the Internet is a device or undertaking performing medium as opposed to a stimulation medium.

Consumer Behavior

The study of consumer behavior has assumed great importance in recent times in a country like India considered being a sellers‘ market. Consumer choice for branded packaged goods has been quite wide for Indian buyers, even in times of control and plans. One can say now that there is emerging buyers‘ market for consumer branded goods in India today both for non-sustainable and sustainable. Advertising of these goods has also grown rapidly in the last two years. The study of consumers is a major research tool for the marketing manager in the affluent countries of the West, during the four decades of post-World War II, existence of a buyers‘ market in the West. Consumer behavior as a complex phenomenon has been a subject of study for the mutual advantage of the marketers and The relationship between the marketers and the buyers is not that of an adverse but it is more in the nature of symbiosis marketing as indicated in the famous definition of Philip Kotler1, ―is a human exchange directed at satisfying wants and needs of customers‖. Consumer behavior has, therefore, to be studied in order to understand the nature of consumer needs and wants and to decide on the best possible methods with which current technology can satisfy them, within the gamut of the marketing concept which becomes the philosophy of business. During the 20th Century, assembly-line methods and mass production has led to lower costs and affordable prices to the consumers, especially in the West. In the developing countries like India, the emergence of a mass market will come only when consumers have the purchasing power and are in need of goods that are being marketed. There is also more need for communication about the variety of consumer goods available to the consumers. Consumers are also benefited by advertising communication. They become aware of a branded product and then if interested they can desire the product so as to go and buy it. This in other words, it is the AIDA model of the effects of advertising communication ‗A‘ for Attention, ‗I‘ for Interest, ‗D‘ for Desire and ‗A‘ Action. A number of complex buyers behavior models were developed in the 70‘s when marketer found that despite making a wide variety of consumer goods available at affordable prices and advertising them aggressively, consumers were becoming quite choosy. The foremost among these models was the ‗Howard Sheth models‘ of buyer‘s behavior developed by ‗John A. Howard and Jagadish N.Sheth2 in 1967‘. It has three major components, viz, inputs, buyers behavior process and outputs. It is only the inputs that are under the control of the marketing managers. These include the product, prices, quality, its distribution and availability and finally its promotion. However, the marketers remain in the dark about the effect of his marketing strategies, especially advertising communication on actual purchase ofthe retail outlet. Among the other useful buyer behavior models are the ‗Engel, Blarknell and Kollat(EBK)3 model, known as the multimedia model, indicative of the processors that mediate between stimuli and exposure and the final outcome of behavior. The integrated buyer behavior model of Harold M. Kassaijan and Thomas, S.Robertson, also includes advertising as one of the important marketing factors. In most of these models the ‗buyers are shown to search for information about purchase alternatives, where man media advertising becomes a potent source. Especially, negative publicity seems to have the tendency to damage the company‘s image. This is mainly due to the fact that high credibility as well as the negativity effect has a tendency to be more reflected upon than positive information in the consumer‘s evaluations. It is more likely that companies will receive bad exposure since the media prefers to present bad news. Till &. Shimp76 (1998) support this statement and continues, explaining that companies have to be aware of the possibility of attaining negative publicity when using celebrities as endorsers, since this may affect the consumers‘ perception of the brand. The consumers‘ support of a brand is of major importance for the prospect existence of a brand and the organization. If an incident occurs in Relation to the brand, the consumer‘s trust in the brand will fade and the consequence will affect the consumers purchasing behavior. When consumers get questioned by marketers about their purchasing behavior, they give the impression that incidents with brands do not influence their choices. Usually they also claim that neither advertising nor negative publicity affects them. Riezebos77 (2003) also states that the most objective way to determine this effect on consumers is to list changes in the market shares. Moreover, if negative publicity leads to brand damage, the media can be seen both as the source/spreader of publicity simultaneously as challengers. In the case of source/spreader the media functions as a gate-keeper whereby it concentrates on those incidents that bring about newsworthiness. Other incidents with a high newsworthiness are relevant with a particular brand in crisis. This is true mainly because the other events can act as deflections and push away the negative publicity of the brand. An example of this ―push away event‖ can be a natural disaster.

Marketing Concept and Consumer Behavior

Throughout the 1950s, a number of different techniques to conducting business were developed, including the product idea, the selling concept, and social marketing concept, all of which had a significant impact on the study of consumer behavior. • The Production Concept: Product availability at low costs is assumed to be the primary goal of the manufacturing approach, which focuses on efficient production and extensive distribution. When customers are more concerned with getting the product than they are with particular features, this approach makes sense because they will purchase what is available rather than wait for what they actually want. Today, emerging nations and other circumstances

• TheProduct Concept: It is assumed that customers would choose a product that provides the greatest quality, the best performance, and the most options. Having a "product orientation" means that a firm is continually striving to enhance the quality of its product and to add additional features that are technically viable without first finding out whether or not customers genuinely desire these additions, A concentration on the product rather than on the requirements of the customer is frequently the result of a product orientation, which is called "Marketing myopia." As a result of marketing myopia, a business may fail to notice significant shifts in the industry. This is because marketers tend to focus on the minutiae rather than the big picture. • The Selling Concept: Both the production and product concepts have naturally evolved into a selling model, in which a marketer's main goal is to sell the products it has produced. It is assumed that people will not purchase a product unless they are forcefully convinced to do so, mainly using the "hard sell" method. This strategy has a flaw: it ignores the importance of a happy client base. Customers who purchase things they don't desire or need are less likely to do so in the future. Additionally, they are more inclined to spread unfavorable word of mouth about the goods, which discourages others from making comparable purchases. Life insurance companies, political organisations, and companies that have surplus inventory are all examples of businesses that use the selling idea today.

CONCLUSION

The advertisement with emotional factor is showing significant impact onconsumer sustainable to bring loyalty among them, and hence so companies plan advertising strategy in accordance with it. As gender, age, sex, educational qualification and income level do not have any influence on customer satisfaction of consumer non-sustainable, companies need not setup different strategies for their groups or segment. Consumer attitude towards advertising impacts brand attitudes and purchase decisions, thus, it is imperative for marketers to create advertisements thatare believable and contain relevant information about the product. The advertising claims should be relevant and not deceitful. The message should focus on product benefits and attributes. The advertisers should depictsocial responsibility in their ads. Ads towards children shouldbe controlled. Companies should also be self-regulatory since customers are worried about this issue, according to advertising companies. Adverts in the media are full of hyperbole, which is something to avoid. Manufacturers of fast-moving consumer goods (FMCG) are urged to supply their customers with appropriate packaging. The significance of packaging is undervalued in India.

REFERENCE

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Corresponding Author Varun Kumar Singh*

Research Scholar, Sri Krishna University