1. Executive Summary <br />This project of understanding the effect advertisements have on consumer buying behaviour was undertaken in order to identify those critical criteria that influences the consumer to buy a particular product.<br />This project in particular delves into the influencing factors that TV commercials carry, which in turn leads to a buying decision made by the consumer.<br />For this particular project the advertisements of the chocolate brand Cadbury were utilized.<br />From the analysis of the information obtained, the findings gleaned were that Cadbury remains the number one chocolate brand and one of the reasons for this is that the advertisements made for Cadbury are innovative and create an emotional connect with the audience and hence makes them feel like purchasing the chocolates. It was found that Cadbury advertisements are very memorable and indeed do have an effect on the viewers approach to the brand and have a definite impact on the sales of the brand.<br />This project also took a deeper look at another aspect namely the ratio of males to females on which the advertisements have an effect. All the points that were taken as a whole have also been dissected for the male to female ratio in order to find out on which gender the advertisements have maximum impact. The findings of these will undoubtedly go a long way in helping Cadbury to make decisions based on whom exactly to target in order to make maximum impact.<br />Objective and Scope of Study <br />The primary purpose for conducting this research was to get a good grasp on the main influencing factors in advertisements that give that little extra push so that the consumer goes ahead and actually purchases the product he sees on TV.<br />The objectives of conducting this project are –<br />To understand what a consumer finds attractive in an advertisement<br />To determine the level of influence that the advertisements can create to manipulate or influence the buying behaviors of the consumers<br />To isolate the factors within the advertisements that influence the purchasing decisions of consumers<br />To find out the level of intensity behind each of those factors<br />To understand how these factors actually affect the mindset of the consumers<br />To measure the level of impact on male and females separately<br />The scope of this project is to identify those parameters that influence the purchase decisions of consumers, both males and females, so that the same can be used more effectively and efficiently in order to attract more consumers and to increase the instances of brand recall, to spread brand awareness and to increase sales of the brand’s products.<br />Research Methodology<br />Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic.<br />Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. <br />In order to conduct this project, it was necessary to employ certain research methods in order to collect data on which the findings would be based.<br />The main research method that was used for this project was Exploratory research. <br />Under this, the main avenue used for collecting data was Primary research.<br />The sampling method used was convenience sampling.<br />The process used during carrying out this project was to show TV commercials to chocolate consumers; of one of the leading chocolate manufacturing companies Cadbury Ltd. and to then ask them questions based on those advertisements.<br />Five ads of the Cadbury chocolate Dairy Milk were chosen. Each of these ads were originally released with a significant time gap in-between and hence each of them have a relatively different concept to them.<br />The ads were shown to a sample size of 72 randomly chosen individuals, all above the age of 20. There were then asked to fill out a standard, structured questionnaire that was prepared beforehand. <br />The type of questions that were asked included mostly close-ended ones but a few open-ended questions were also asked in order to invite the consumers own perceptions and opinions.<br />The questionnaire itself was simple, standardized and structured.<br />The data collected was then analyzed.<br />Although this survey was successful in identifying a lot of the factors that are responsible for determining consumers purchasing decisions, there were limiting factors as well which hindered the project and did not allow a complete survey to take place.<br />These factors are as follows –<br /> <br />For this survey a sample of only 72 people were taken<br />Furthermore a majority of the people interviewed were from the younger generation. Hence this did not lead to the covering of all age groups for collecting adequate data<br />Statistical Analysis of Data<br />Number of respondents72Average age23<br />Gender<br />Male3551%Female3749%Total72100%<br />Age groups<br />Age GroupsTotalMaleFemale20 – 2539122726 +331122Total722349<br />46 %54 %<br />Frequency of consumption<br />TotalMaleFemaleDaily 31823Once in two days19712Once a week1569Once in fifteen days624Less often101Total722349Total Average171618<br />Most consumed brands<br />Chocolate brandTotalMaleFemaleCadbury551243Nestle17512Ferrero Rocher642Lindt972Others19118Total1063967<br />18 %9 %6 %52 %16 %<br />Favorite brands<br />Chocolate brandTotalMaleFemaleCadbury451233Nestle734Ferrero Rocher431Lindt752Others954Total722844<br />13 %10 %5 %10 %62 %<br />Frequency of TV viewing (daily)<br />No. of hoursTotalMaleFemale1 Hour9632 – 3 Hours5515405 Hours or more 835Total722448<br />76 %<br />13 %11 %left81915<br />CDM ad viewership (ratio)<br />TotalMaleFemaleViewed681949Not viewed422Total722151<br />6 %94 %<br />Timing of ads<br />Time slotTotalMaleFemaleMorning110Afternoon / Matinee 606Evening / Late evening571641Prime time slots33924Total972671<br />34 %59 %6 %1 %<br />Type of channel<br />Type of channelTotalMaleFemaleHindi movie261214English movie402119Hindi entertainment291316English entertainment472621News channels321Hindi movie101Total1467472<br />1 %2 %27 %18 %32 %20 %<br />CDM ads symbolize the spirit of the company<br />TotalMaleFemalePeople who believe 611546People who do not1165Total722151<br />85 %15 %<br />Memorability of the ads<br />AdvertisementTotal average ratingAverage rating for MalesAverage rating for FemalesKuch Khaas Hai334Pappu Pass Ho Gaya332Kuch Meetha Ho Jaaye323Shubh Aarambh333Romance333<br />Communication with viewers <br />AdvertisementTotal average ratingAverage rating for MalesAverage rating for FemalesKuch Khaas Hai334Pappu Pass Ho Gaya334Kuch Meetha Ho Jaaye334Shubh Aarambh333Romance333<br />Effect of ads on viewers approach to the brand<br />TotalMaleFemaleYes632241No954Total722745<br />87 %13 %<br />Impact on sales of product<br />TotalMaleFemaleYes642737No844Total723141<br />88 %12 %<br />Viewers influenced to buy the product after seeing CDM ads<br />TotalMaleFemaleYes30822No421923Total722745<br />58 %42 %<br />Impact of CDM ads in increasing the brand awareness<br />TotalMaleFemaleYes662343No642Total722745<br />8 %91 %<br />Ads that resonated the most<br />AdvertisementTotalMaleFemaleKuch Khaas Hai1358Pappu Pass Ho Gaya853Kuch Meetha Ho Jaaye18108Shubh Aarambh27234Romance651Total724824<br />37 %25 %18 %11 %9 %<br />Most liked ads<br />Most liked adTotalMaleFemaleKuch Khaas Hai734Pappu Pass Ho Gaya431Kuch Meetha Ho Jaaye30228Shubh Aarambh26521Romance532Total723636<br />5 %7 %41 %9 %36 %<br />Most liked aspect of the ad<br />TotalMaleFemaleIdea381820Actors1037Music1376Song624Theme411922Total1084959<br />35 %37 %7 %9 %12 %<br />Increase in popularity of product<br />TotalMaleFemaleYes692643No321Total722844<br />5 %95 %<br />Findings of Research<br />The number of people that were interviewed for this project were 72.<br />Out of those 72 people, 49% were male and 51% were female, which is a pretty much equal mix of the two genders.<br />The total number of people were classified into two age groups i.e. 20 – 25 and 26+. It was found that 54% of the total number of respondents belonged to the former while 46% belonged to the latter.<br />Of all the people that were interviewed, a majority of 43% of the total stated that they consume chocolates daily, 26% once in two days, 22% once in a week, 8% once in fifteen days and 1% less often. This suggests that chocolates are indeed high in demand in their diet. It was also found that females consume chocolates on a higher basis that males.<br />When asked if they had seen the Cadbury Dairy Milk advertisements that were shown on television, a whopping 94% of the total 72 people affirmed that they had indeed seen it on TV. This shows that the Cadbury advertisements themselves are noticeable and rememberable so that they have a high recall value amongst television viewers. Again the ratio of females to males was found to be skewed in the direction of females with 71% of the number of people who have watched the Cadbury advertisements being female.<br />When asked about factors pertaining to the ads such as memorability and communication, most people gave an average rating of between 3-4 for the advertisements, thus suggesting that the ads are indeed of high quality and have that connection with the viewers that enable them to have a high recall and that they send across the intended message quite effectively.<br />It was noticed that most of the people from the total sample interviewed felt a certain nostalgia for the ad Kuch Khaas Hai as they rated this ad as the highest in terms of memorability. <br />With respect to communication, most of the people from the sample interviewed felt that the Shubh Aarambh ad connected and communicated the best with the audience as it embodies a very simple idea which manages to touch the heart of the viewer.<br />It was also observed that most of the males from the total sample rated the Pappu Pass Ho Gaya and Kuch Meetha Ho Jaaye ads the highest whereas most of the females from the total sample rated the Shubh Aarambh and Romance ads the highest, with respect to choosing their favourite ad.<br />This is probably because the males from the sample appreciated the humour factor more in the the Pappu Pass Ho Gaya and Kuch Meetha Ho Jaaye ads and the females were more drawn to the softer and romantic aspect of the Shubh Aarambh and Romance ads.<br />It was found that most of the viewers enjoyed the Pappu Pass Ho Gaya and Kuch Meetha Ho Jaaye ads the most. This is because these two ads show larger than life situations which are usually not seen in real life. <br />These two ads also rated the highest on factors such as strong brand portrayal and innovation as well. This is due to the fact that the whole premise of these two ads revolves around the Cadbury chocolate and also because larger than life situations were portrayed which is mostly not the case in other advertisements.<br />Most people found that the Kuch Khaas Hai ad reminded them of their childhood days and they felt a certain regard and affection for that ad. This clearly shows that the ad is indeed timeless.<br />People found the Pappu Pass Ho Gaya and Kuch Meetha Ho Jaaye ads highly entertaining and enjoyable and a few even mentioned that they saw these ads on TV every opportunity they got. They absolutely loved the brightness and colorfulness of the ads and the merry and joyful way in which the message was conveyed.<br />People found the Shubh Aarambh and Romance ads to be very pleasing as it appeals to their softer side and makes them feel warm and happy.<br />The respondents were also questioned on the impact the advertisements had on them and how they thought that the ads would affect the brand and the product with respect to the consumers.<br />When asked if the ads would affect the viewers approach towards the brand, a high majority of 87% of the total number of people agreed that it would, of which 57% were females and 30% were males. <br />When asked if the ads would have an impact on the sales of the products of the brand, again 88% of the total number of respondents said that it would definitely have an impact, of which 51% were females and 37% were males.<br />When asked if the ads would contribute in increasing Cadbury’s brand awareness, 91% of the total number of people agreed that it would, of which 59% were females and 32% were males.<br />When asked if the ads would help in increasing the popularity of the brand and of its products, a very high majority of 95% of the total number of respondents agreed that it indeed would, of which 58% were females and 37% were males.<br />However, when asked if the ads had actually influenced them to purchase the product, 58% of the total number of respondents replied in the negative, of which surprisingly 32% were females and 26% were males. This indicates that how much ever influencing the advertisement is, ultimately it is up to the consumer to make up his mind on the buying decision. Advertisements can only provide a little extra push in the forward direction.<br />Conclusion<br />The main objective of this study was to observe the effects that advertisements have on consumer buying behaviour. <br />Various parameters such as memorability, communication, enjoyability, brand portrayal, believability, innovation, persuasion etc. were tested based on the advertisements of Cadbury Dairy Milk that were shown to the sample population. <br />Based on the findings obtained one can conclude that advertisements indeed have an effect on television viewers and make them think and feel particular emotions regarding the brand and product which is represented by the advertisement.<br />They colour the individual’s perspective and perception. Hence the need for advertisements is evident as they serve as a tool to not only put forth the intended message but to also visually attract the viewer towards the brand and the product in such a manner that it proves to be beneficial.<br />Bibliography<br />Websites<br />www.google.com<br />www.wikipedia.com<br />Books<br />Marketing Management <br />(10th Edition)<br />by Philip Kotler<br />Marketing Research <br />(First Edition)<br />by S.L. Gupta<br /> <br />Annexure<br />Questionnaire<br /><ul><li>Do you eat chocolates?
4. What is your frequency of consumption of chocolates?
5. DailyOnce in two daysOnce a weekOnce in fifteen daysLess often
6. Which brand(s) of chocolate do you like to consume?
7. List the brands
8. Which is your favorite brand/s of chocolate?
9. What is your frequency of television viewing (daily)?
10. 1 Hour2 – 3 Hours5 Hours or more
11. Others, please specify
12. Can you recall any chocolate advertisements that struck you the most?
13. Have you seen CDM ads on TV before?
16. When have you seen the ads?
18. MorningAfternoon / Matinee Shows Evening / Late evening Prime time slots</li></ul>Channels type <br /><ul><li>Hindi movie English movieHindi entertainmentEnglish entertainmentNews channelsKids / others
19. Do you think that these ads symbolize the spirit of the company?
22. Which of the ads make the product memorable/stand out? Rate on the scale of 1 – 5
23. TopicKuch Khaas HaiPappu Pass Ho GayaKuch Meetha Ho JaayeShubh AarambhRomanceRate from 1 – 5</li></ul>How do you think the ads communicate with the viewers on the following scale?<br /><ul><li>TopicKuch Khaas HaiPappu Pass Ho GayaKuch Meetha Ho JaayeShubh AarambhRomanceRate from 1 – 5
24. Do such ads affect the viewer’s approach towards the brand?
27. Do you think that such ads can have an impact on the sales of the product of the brand?
30. Have any of the CDM ads influenced you to buy the product?
33. Do such ads help in increasing brand awareness?
36. Which of these ads resonated with you the most?
37. Kuch Khaas HaiPappu Pass Ho GayaKuch Meetha Ho JaayeShubh AarambhRomanceSelect
38. Which of these do you like the most?
39. Kuch Khaas HaiPappu Pass Ho GayaKuch Meetha Ho JaayeShubh AarambhRomanceSelect
40. What aspect of these ads struck you?
42. Rate the ads on a scale of 1 – 5 based on the following factors –
43. ADFactorsEnjoymentPersuasionBelievabilityStrong brand portrayalInnovationKuch Khaas HaiPappu Pass Ho GayaKuch Meetha Ho JaayeShubh AarambhRomance
44. Do you think such ads help in increasing the popularity of the product?