Research Article: 2017 Vol: 9 Issue: 1

A Study On The Influences of

Advertisement On Consumer Buying
Behavior
Tashrifa Haider, Independent University Dhaka
Shadman Shakib, Masters Independent University

Keywords

Consumer Buying Behaviour, Advertisement, Entertainment, Familiarity, Advertisement Spending, Social

Imaging.

Introduction

Advertising is a way of communication to encourage an audience for making purchase decision about a
product or service and conveying information to viewers. It is considered as a vital and essential element for
the economic growth of the marketers and businesses (Ryans, 1996). Advertising is usually a paid form of
exposure or promotion by some sponsor that reaches through various traditional media such as television,
newspaper, commercial radio advertisement, magazine mail, outdoor advertising or modern media such as
blogs, websites and text messages (Ahmed & Ashfaq, 2013).

Marketers have always adapted to changing business demands when it comes to creating new
advertisements. The use of advertisements has significantly increased in the 20 th Century as industrialization
expanded the supply of manufactured products. However, not many businesses practiced advertising at the
time. During the late 80s advertisements were fairly limited to television, radio, billboards and newspapers.
In the modern times, businesses are leaning towards Digital Advertising. Companies are so focused in social
media and mobile advertisements that they may take over Television advertisement very soon. In
Bangladesh, the trend of Digital Marketing is just on the bloom. Most large local and multinational giant
companies are now practicing digital marketing in full swing.

The major aim of advertising is to impact on buying behaviour; however, this impact about brand is
changed or strengthened frequently through people’s memories. Memories about the brand are formed by
associations that are related to brand name in consumer mind (Khan, Siddiqui, Shah & Hunjra, 2012). These
brands continuously influence consideration, evaluation and finally purchases (Romaniuk & Sharp,
2004).Consumers buying behaviour has always been given so much importance and space in the literature
study of impact of advertising regarding its effectiveness (Ajzen, 2002). Most of the time consumers buying
behaviour depends on liking or disliking of consumer towards the advertisement of the product advertised
(Smith et al., 2006). A good quality advertisement is likely to influence consumers into buying that product
while a poor quality advertisement will do the opposite.

Previous studies have been conducted on effectiveness of advertisement and on advertisement’s impact on
consumer buying behaviour which depicted positive relationships. However, in this paper we have
introduced a combination of different variables and attempted to examine their influence on consumer
behaviour. This paper aims to determine which of these variables carries the most importance in terms of
effecting consumer behaviour and which of these variables carries less significant impact. This will help
marketers to focus on the right factors and achieve maximum benefit from their advertisement.
We believe that the study will offer useful insights for both advertising scholars and executives to
understand the ins and outs of advertising and to assist marketers in introducing better approaches to
advertising.

Background Of The Study

Following are the review of major research work on the topic which is related to the present study:

Maheshwari, Seth & Gupta (2016) in their article “An empirical approach to consumer buying behaviour in
Indian automobile sector" has concluded that advertisement effectiveness positively influences consumer
buying behaviour.

Ha, John, Swinder & Muthaly (2011), in their research paper "The effects of advertising spending on brand
loyalty in services" have discovered that advertising spending has impact on consumer’s perceived quality
of the product, consumer’s loyalty and satisfaction level.

Kumar & Raju (2013) in their paper “The Role of Advertising in Consumer Decision Making” have found that
advertisements are able to change the consumer’s opinion about a particular product.

Advertising has always known to be one of the key factors that affect consumer’s decision making process.
In this paper, we have attempted to combine different sets of variables from these previous studies to test
and analyse how they impact consumer’s buying intention.

Review Of Literature

Entertainment

Entertainment has been one of the primary criteria for creating an advertisement. Entertainment is used as a
tool to gain attention of customers. An interesting and entertaining ad is more likely to be remembered by
consumers rather than a boring one. Therefore, it can be said that entertainment increases the effectiveness
of advertising. That is why many companies are investing a lot of money to make advertisements that are
humorous (Mandan, Hossein & Furuzandeh, 2013).

Former studies suggest that entertainment in advertising generates customer satisfaction (Chang, 2006).
This claim was tested by later empirical studies. For instance, Duncan and Nelson (1985) conducted a
research on how entertainment in advertisement affects consumers. They analysed 157 responses towards
advertising and found that entertaining advertisements can influence consumers. It influences consumers
into accepting and consuming the product (Duncan & Nelson, 1985). In a similar way, Chang (2006)
investigated about entertaining advertisements and its influence on consumer satisfaction and leave impact
on their behavioural intentions. Based on his research on 152 participants, he found that entertaining
advertising can positively increase consumers’ satisfaction, thus influencing consumer buying behaviour.

Although use of humour in advertisements can be risky at times as a large number of people may not be
entertained by the same concept. Gulas and Weinberger in their book say that a failed attempt to
entertaining ads is a lost opportunity to connect with consumers. It may even offend consumers and drive
them away. They have exemplified this risk with a 1999 Super Bowl advertisement for ‘Just for Feet’. It
showed a group of white men tracking a barefoot, black Kenyan runner who was later drugged and forced
against his will to wear a pair of running shoes (p. 174). The advertisement was met with massive outrage
(Gulas & Weinberg, 2006).

However, entertaining advertisements do not necessarily mean humorous ads. Thrilling, full of suspense
advertisements can also be counted as entertaining. One of the biggest examples of all time is the Apple
super bowl commercial “1984”. It left people awestruck and it was immediately able to get attention of
people. It was very effective in terms of spreading news about a new era of computers. It also had a huge
part in generating sales for the company.

Harvard professor Teixeira has conducted an interesting study on this regard and wrote a paper “Why,
When and How much to entertain consumers in advertisements?” The study is based on a facial tracking
study (software used to track the facial emotions) in response to the TVCs. This is a first of its kind study
and is the latest (Teixeira, Picard & Kaliouby, 2013).

Teixeira found that entertainment plays both a co-operating and a conflicting role, depending on its type
(i.e., location in the ad). Entertainment that is associated with the brand is co-operating, as it acts as a
persuasion device both in the interest and purchase stages. Entertainment that is not associated with the
brand acts predominantly as an attraction device at the interest stage, thus indirectly cooperating but also
directly conflicting with the ultimate goal of the ad.

The previous research as provided us with diverse information about the impact of entertainment on
consumers. It is seen to influence consumers in a positive way by grabbing their attention and creating a
lasting impression. However, in some cases the impact was negative. In this research we will attempt to find
out if these varied impressions about entertaining advertisements really have any impact on consumer’s
buying intention.

Familiarity

Alba & Hutchison (1987) defined familiarity as the number of product-related or service-related experiences
that have been gathered by the consumer. These related experiences include direct and indirect
experiences such as exposure to advertisements, interactions with salespersons, word of mouth contact,
trial and consumption. Johnson and Russo (1984) viewed familiarity as being tantamount with knowledge.
Johnson & Kellaris (1988) have considered experience contributing to familiarity. Review of the literature
shows that knowledge; experience and familiarity are closely intertwined. Following Alba and Hutchison’s
(1987) definition, brand familiarity is identified as the accumulated correlated experiences that customers
have had with a brand (Ballester, Navarro & Sicilia, 2012).

The effect of brand familiarity can be observed through a process called ‘Product-class cues’. The product
class or subcategory to which the brand belongs could serve as a cue in many cases. A consumer may want
a "fruit juice" to have with a meal. Research on categorization processes has recognized the importance of
"prototypically" as an indication of the strength of association between a category concept and members of
the category (Rosch, 1975; Medin & Smith, 1981). Prototypically of a brand is known as a measure of how
representative the brand is of its product category. Operationally, prototypically is measured by individuals'
ratings of how "good an example" they consider the object of a category. Brands that are prototypical are
more likely to be recalled faster and more frequently (Nedungadi & Hutchinson, 1985; Barsalou, 1985;
Rosch & Mervis, 1975). This leads to a higher probability of being included in the evoked set and to higher
probability of choice.

Zajonc (1968) in a research has demonstrated that experience to a stimulus can enhance the fondness for
that stimulus independently of cognitive evaluations or contextual associations. Basically, this stream of
research has confirmed that affect is a linear function of the logarithm of exposure frequency (Harrison,
1977). So, as exposure to a brand increases, affective reactions to the brand become more favorable. It
means the more a brand is exposed through advertisements and campaigns, the more exposure it gets,
which eventually leads to more familiarity of the brand.

Zajonc & Markus (1982) suggest that familiarity may lead to creation of positive impression of a service or
object. When confronted with a familiar service or brand, the consumer may feel a glow of warmth and
intimacy. Familiarity with the brand thus creates a sense of trustworthiness in consumer’s minds.
The previous researchers have all identified how familiarity towards a brand causes a psychological change
in the minds of the consumers. It is seen that familiarity mostly evokes positive emotions about a brand on
the consumer’s mind. This paper will attempt to find out whether these changes in the psychology,
eventually lead a consumer to purchase a product or not.

Social Imaging

Advertisements generally have influence on how we perceive things around us. Through various types of
advertisements, especially TVCs portray how a user of a certain product is or should be. It sometimes shows
the social class the user of a product belong to, their lifestyle and attitudes.

In cases of beauty product this concept is highly applicable. In a research conducted in 2009 it was
observed that one of most influential ideas spread by the media is society's perception of beauty and
attractiveness. The thin beautiful woman and the handsome muscular men are seen everywhere. And as the
influence of media increases, the pressure to hold on to these ideals increases (Russello, 2009).

In 2008, the YWCA USA published a report, Beauty at Any Cost, which highlighted the consequences of the
beauty obsession on women and girls in America through media. This feeling of insecurity and obsession is
very much likely to trigger purchase of beauty products (Britton, 2012).

The mass media is the most powerful way to spread these images that represent sociocultural ideals
(Tiggemann, 2003). Advertising promote social messages and life style by illustrating the position of ideal
consumer and stimulates consumer’s willingness to purchase (Pollay & Mittal, 1993).

Apart from the beauty industry, another great example of social image that is solely created by
advertisement is the brand “Rolex”. It is not necessarily the best product in the market nor does it add a lot
of usefulness to one’s life in this day of cell phones. But through its careful ad placements they have gained
the attraction of millions. They have targeted sports and club members of the elite and portrayed them in
their advertisements. They have identified how the lifestyle of an ideal customer of their product is, where
they live, where they hang out, etc. In a way they have sent a subliminal message to the people that ‘Rolex’
is only for the rich and sophisticated, it is what sets a person apart from the ordinary. Rolex is now more of
a social status rather than a time tracking device. As a result, a person who has suddenly become rich would
want to buy a Rolex just to have a sense of belonging in that ‘elite’ class.

Even the smart watch by Apple that offers a great functionality failed to compete with Rolex as it was
reported by Tech Times:

“Apple may be the numerouno smart watch seller in the world and while it can revel in the fact that it thwarts
its wearable rivals such as Samsung, Sony and LG in this sphere, the Cupertino-based company is still not a
shine on Swiss watchmaker Rolex, which is synonymous with luxury”.

Prior studies have shown that stereotyping and classification of a certain gender or group of people has a
huge impact on mass population. People feel pressurized to look a certain way to get a feeling of
belonging. This may have both positive and negative impact on the society. But in this research, we will
focus on finding out if ‘social imaging’ in an advertisement is successful in persuading people to purchase a
product by inducing their desire to belong in a certain social class.

Spending

Advertising spending can have an effect in the buying behaviour of people in a sense that the more money
spent can be linked with the quality of advertisement and the frequency of advertisement. It may result in
creating a lasting impression in consumer’s mind. Advertising is an important extrinsic cue signalling
product quality (Milgrom & Roberts, 1986). Heavy advertising spending shows that the firm is investing in
the brand, which means the organization has a huge investment and thus implies that they might have a
better quality of product (Kirmani & Wright, 1989). In addition, advertising spending levels are good
indicators of not only high quality but also good buys (Archibald, Haulman & Moody, 1983).

Yoo, Donthu & Lee (2000) examined the impact of the marketing mix variables on consumer behaviour. The
approach focuses on the indirect effect of these determinants on brand loyalty. Since advertising spending
affects expectations of product or service quality in consumer’s mind (Kirmani & Wright, 1989; Yoo, Donthu
& Lee, 2000; Moorthy & Zhao, 2000), its role should be indirectly linked to brand loyalty implying that
rather than the advertisement itself, it is how advertising affects customer perception of the firm that is
more critical in impacting consumer buying behaviour (Ha, Janda & Muthaly, 2011).

The earlier studies have concluded that when a huge sum is spent on advertisements and other marketing
campaigns consumers began to expect more from that particular brand. It creates and illusion of better
quality of product or service from that brand. In this study, we will try to find out that how these
associations that consumers make with ‘Advertisement Spending’ and the ‘Brand’ effect their purchase
decision. In other words, we will attempt to find out how consumers perceive advertisement spending and
if it ultimately influences them to purchase the product.

Consumer Buying Behaviour

Consumer buying behaviour refers to the methods involved when individuals or groups choose, buy, utilize
or dispose of products, services, concepts or experiences to suit their needs and desires (Solomon, 1995). A
behaviour that consumers display in searching for, paying for, using, evaluating and disposing of products
and services that they think will satisfy their needs (Schiffman & Kanuk, 2007). It is a convergence of three
fields of social science, they are, individual psychology, societal psychology and cultural anthropology
(Ramachander, 1988). A theory that answers what, why, how, when and where an individual makes purchase
(Green, 1992); it is particularly important to study the subject of consumer buying behaviour as it facilitate
firms to plan and execute superior business strategies (Khaniwale, 2015).

In this research we will attempt to find what factors effect consumer buying behaviour. In previous studies
certain variables were found to have an impact in consumers. This is briefly discussed below:

Nowadays, people have access to the endless supply of advertisements. However, they fancy something
new, entertaining and something that can grab their attention. Boring advertising will not sustain in
consumers’ minds long enough. Therefore, entertainment has been termed as a significant advertising
strategy for increasing advertising effectiveness and imploring them to make a purchase (Madden &
Weinberger, 1982).

Familiarity created by advertisement for a certain brand is also an important factor that affects consumer
buying behaviour. Macinnis and Park (1991) carried out a study with consumers to investigate the effects of
familiar songs in advertising and consumer behaviour. In their research, consumers depicted satisfaction for
products with familiar songs and a significant relationship was confirmed between the level of familiarity of
the songs in the advertising and its amiability.

Social role and image reflects that ads influence individual life style and the extent to which an individual
seeks to present him or herself in a socially acceptable manner. In addition to selling products and services,
ads sell image and life style. Consumers learn about new life style, image and trend through ads (Pollay &
Mittal, 1993; Burns, 2003). Advertising promote social messages and life style through illustrating the
position of ideal consumer and stimulate social action toward purchase of that product.

Advertising spending also creates positive impression about a brand in the minds of the consumers. Aaker
and Jacobson (1994) also find a positive relationship between advertising and perceived quality. Hence,
advertising spending is positively related to perceived quality, which leads to greater amount of purchase
from that brand as consumers generally prefer to purchase from a well know brand in order to avoid
disappointments over quality.

Conceptual Framework

The influence of advertisement and how advertisements work is a question that most marketers and
managers try to find an answer to. The primary objective of advertisement is usually to impact the
consumer’s buying behaviour. Most of the time consumers buying behaviour is influenced by liking or
disliking of consumer towards the advertisement of the product, advertised (Smith & Neijens, 2006). In the
words of Gorn (1982), the consumer behaviour towards a product is wholly depending on advertising,
without any consideration of the features of the product.

To analyse more about the effects of advertisement and the factors of advertisement that influences the
consumer buying behaviour, a conceptual framework is built. The hypotheses for this research are
formulated based on the literature review to build a conceptual model for the research (Figure 1).

Methodology

This study required a structured and definite plan to identify the relationship between different variables
and test hypotheses. For this reason, this research was conducted following the formal research design.

The data collection technique used in this study comprised of playing out an up close and personal meeting
with the respondents who are consumers of any product or have been exposed to any sort of
advertisement. The review poll was planned and conveyed to target respondent arbitrarily. All together for
the research to deliver a reasonable result, the data must be comprised of a large number of populations.
Hence, the survey was conducted among 544 consumers.

As the research framework indicates, there are four independent variables and one dependent variable. So
an adjustment in the independent variable will change the dependent variable. In this manner, to examine
the research questions and test the theory a Causal review is required. This study is focused on finding out
the impact of advertising on consumer buying behaviour. This paper also clarifies the structure of a
connection amongst the independent and dependent variables. Therefore, this study can be considered as
Causal or Explanatory research. Explanatory research shows a connection between factors and also the
course of the relationship.

The sampling method that was used in this research is ‘random sampling method’. Students, professionals
and aged people were considered for the survey. The age limit was minimum 18 years. The data was mainly
collected among the people from different parts of Dhaka city, which is the capital of Bangladesh. The data
collection took place from November 2017 to March 2017.

A closed survey comprising of 21 items were presented to the respondents and asked to give their opinion.
In some cases, for better understanding of the respondents the questions were translated to the native
language (Bengali). Any queries and problems in understanding the questionnaire were resolved by the
interviewees immediately.
For this study a total of 620 consumers were approached. Among them, 544 surveys were used for the
analysis. The response rate however was approximately 87.74%. The remaining 76 questionnaire were
eliminated due to some errors such as, being filled in incorrectly or were left incomplete.

Data Analysis

Descriptive Statistics

The analysis for this study is based on 544 respondents. Among them, 57.5 % (313 participants) were male
respondents and 42.5% (231 participants) female respondents. In terms of gender, among the 544
respondents who participated in the survey, 210 (36.9%) were at the age range of 18 to 25 years; 163
respondents (30%) were at the age range of 26 to 40 years; 107 respondents (19.6%) were at the age range
of 41 to 60 years; and 73 (13.4%) respondents were aged above 60 years (Table 1).

Table 1 – descriptive statistics

Gender Percentage
Male 57.5%
Female 42.5%
Age Percentage
18-25 36.9%
26-40 30%
41-60 19.6%
73 and above 13.4%

Reliability Analysis

In this research, the analysis was done using statistical software SPSS, version 20. To check the reliability of
factors, internal consistency coefficients (Cronbach’s Alpha) were assessed. According to George and
Mallery (2003), reliability coefficient of 0.7 is acceptable, more than 0.8 is good and more than 0.9 is
considered excellent. The reliability scores in this research were: Entertainment (0.7), familiarity (0.71), social
imaging (0.765), advertisement spending (0.765) and consumer buying behaviour (0.747). It shows all the
variables have the Alpha value in the ‘acceptable’ range (George & Mallery, 2003) (Table 2).

Table 2 – Reliability analysis

Item Cronbach’s Alpha

Entertainment 0.699
Familiarity 0.519
Social Imaging 0.766
Advertisement Spending 0.765

Pearson Correlation

We can measure the relationship among the independent and dependent variables with Pearson test.

According to the Table 3, the correlation (r) of Entertainment is 0.440, Familiarity is 0.460, Social Imaging is
0.364 and for Spending is 0.344. This indicates a significant positive relationship between the independent
variables and the dependent variable, Consumer Buying Behaviour. The table also shows that for all the
variables, the p-value is 0.000, which is less than 0.01. Therefore, the null hypothesis in this research can be
rejected and concluded that there is a positive relationship between the independent variables and
dependent variable Consumer Buying Behaviour.

SPSS uses a single asterisk (*) to indicate whether a particular correlation is significant at the 0.05 level and
a double asterisk (**) to indicate whether a particular correlation is significant at the .01 level. Significance
indicates that it is significantly different from 0 (zero), which is the Null Hypothesis.

Table 3: Pearson Correlation:

Entertainmen Familiarity Social Spending Consumer Sig (2-

t imaging buying tailed)
behaviour
Entertainmen 1 0.350** 0.336** 0.334** 0.440** 0.000
t
Familiarity 0.350** 1 0.370** 0.289** 0.460** 0.000
Social 0.336** 0.370** 1 0.466** 0.364** 0.000
imaging
Spending 0.334** 0.289** 0.466** 1 0.344** 0.000

Consumer 0.440** 0.460** 0.364** 0.344** 1 0.000

buying
behaviour

Regression Analysis

According to Table 4, R2=0.331 which means the independent variables express the dependable variable
31.1%.

The Analysis of variance (ANOVA) table below determines the overall significance of the model. Since the P
value in the table is <0.05, we can say that the model is significant.

Table 4 – Annova table

Model Sum of Df Mean square F Sig

squares
Regression 90.710 4 22.678 66.697 0.000**
Residual 183.265 539 0.340
Total 237.975 543

The results from the co-efficient table (Table 5) show the level of significance for each variable. From the
table below, we can see that all the IVs have significant impact on DVs as the p-value for all three
independent variables are p<0.05.

Table 5 – Co efficient

Unstandardized Standardised
coefficients coefficients
Model B Std error Beta T Sig
Constant 1.214 0.157 7.737 0.000
Entertainment 0.245 0.037 0.259 6.572 0.000
Familiarity 0.288 0.039 0.293 7.434 0.000
Social imaging 0.088 0.033 0.112 2.675 0.000
 Spending 0.098 0.033 0.121 2.957 0.000
The standardized Beta value shows that among the four independent variables, Familiarity has the most
significant impact with 29.3%, followed by Entertainment (25.9%) Advertising Spending (12. 1%) and Social
Imaging in Advertisement (11.2%).

Implication And Limitation

This study shows that there is positive impact of all the variables on consumer buying behaviour. This
means that advertisement does in fact affect the buying behaviour of consumers. Among the four
independent variables however, we can see that Familiarity and Entertainment have the most significant
impact. So, we can see that the psychological impact that Familiarity has on consumers does in fact lead to
positive buying behaviour. In this case, most consumers have also taken Entertainment as a positive
indicator towards a brand rather than negative.

‘Advisement Spending’ comes in third in terms of significance. This implies that people’s association with
‘Spending’ and ‘Brand’ is likely to lead people to buy a product. In other words, advertisement spending is
somewhat successful in persuading people to make a purchase. Social Imaging in Advertisement is seen to
have the least impact. It means that people’s desire to belong to a certain group sometimes makes people
buy a product. But consumers are more concerned with other factors rather than the ‘social imaging’ in the
advertisement.

Consumers are more motivated to buy a product when they see an advertisement of it somewhere; they
also feel safe to buy a product that they have seen advertisement of. Consumer develops a level of
trustworthiness for a brand they have seen advertisement of. They were even noted to collect information
of products from advertisement, get to know about the usage and benefits of product and then make a
purchase decision based on that. Therefore, advertisement is a very good marketing tool for generating
more sales.

Some limitations of this study ought to be addressed. Firstly, the sample size could have been more if we
had access to a larger number of people. Secondly, it would have been more desirable if we could get hold
of people from a diversified age group especially, the older age group of above 60 years. It would have
been more interesting to know more about their thoughts on modern advertising. Thirdly, this research
could have included a more diversified range of variables to analyse the same topic from a different
perspective.

Conclusion

This research was a study on the impact of advertisement on consumer buying behaviour. For this purpose
four independent variables, Entertainment in Advertisement, Familiarity of Advertisement, Social Imaging in
Advertisement and Advertisement Spending were considered. Based on the analysis it can be concluded
that advertisement has significant impact on consumer buying behaviour. This study can be helpful for
marketers to understand what triggers a consumer’s intention to purchase. They can determine which
element in advertising is most effective and which has comparatively lower impact. Although this research
can make significant contribution to literature but for future study qualitative data can be used. Qualitative
data will provide further insight into the relationship among these variables.

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