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Dissertation

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Creativity in Indian TV ads: A comparision of Beverages and Cosmetics ads of 2014.

Creativity in Indian TV ads: A comparision of Beverages and Cosmetics ads of 2014.

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  • 1. 1 A Dissertation On “Creativity in Indian TV ads.” Submitted for partial fulfilment of requirement for the award of degree Of Master of Business Administration – International Business Of Session 2012-2014 Supervision By, Submitted By, Prof. S K Dubey Sandeep Kumar Samanta, 39 FMS- BHU MBA – IB, Enrol No.- 309243 2014 FACULTY OF MANAGEMENT STUDIES BANARAS HINDU UNIVERSITY VARANASI
  • 2. 2 Declaration I, the undersigned solemnly declare that the report of the project work entitled “Creativity in Indian TV ads.” is based on my own work carried out during the course of my study under the supervision of Prof. S K Dubey, FMS-BHU I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University. (Signature of the Candidate) Roll No.
  • 3. 3 Certificate by guide/ Supervisor This is to certify that Mr. Sandeep Kumar Samanta S/o Nitya Gopal Samanta , a student of MBA (IB), 2012-14 batch, Roll No.- 12382MA041 Faculty of Management Studies, Banaras Hindu University has successfully completed his dissertation on the title “Creativity in Indian TV ads.” To the best of my knowledge the report is the outcome of the candidate’s individual efforts. I wish all the success to the candidate. _______________________ Prof. S.K. Dubey
  • 4. 4 Acknowledgement First of all I would like to thank almighty for giving me the faith & belief in myself. I wrote it for one reason, which was simply because it was necessary for the partial fulfilment of the requirement of the degree. All of that work was done under the auspicious of Prof. S K Dubey, FMS-BHU. Prof. S K Dubey deserves a special vote of thanks for his kind support and guiding me through the project. I am indebted to all my friends who spent their valuable time on filling survey and not losing their temper while answering all the queries. I also want to acknowledge how much I have learned working with Rajiv Mallick, Kunal Jha and Vivek Pathak who helped me in knowing intricacies of the subject. My overriding debt continues to my family who provided me with time, support and inspiration.
  • 5. 5 Contents Declaration ............................................................................................................................ 2 Certificate by guide/ Supervisor............................................................................................ 3 Acknowledgement.................................................................................................................. 4 List of Tables.......................................................................................................................... 6 Introduction........................................................................................................................... 7 Different Perspectives on Advertising Creativity......................................................................8 Indian Advertising Overview.....................................................................................................9 Literature Review ................................................................................................................ 12 Conceptualizations of ad creativity......................................................................................... 13 Conceptualization of divergence and creativity..................................................................... 14 Determinants of divergence with examples ........................................................................... 16 Research Method.................................................................................................................. 19 Project Objective...................................................................................................................... 19 Research Design ...................................................................................................................... 19 Data Collection......................................................................................................................... 19 Selection of ads........................................................................................................................ 19 Statistical Hypothesis Used13................................................................................................... 20 Assumptions for T-test............................................................................................................. 22 Hypothesis................................................................................................................................ 22 Data Analysis and Interpretation........................................................................................ 23 Originality................................................................................................................................ 23 Flexibility ................................................................................................................................. 24 Synthesis.................................................................................................................................. 25 Elaboration.............................................................................................................................. 26 Artistic Value........................................................................................................................... 27 Relevance................................................................................................................................. 28 Findings................................................................................................................................ 30 Limitations of the study....................................................................................................... 31
  • 6. 6 Conclusion............................................................................................................................ 32 BIBLIOGRAPHY..................................................................................................................... 33 Annexure.............................................................................................................................. 35 Questionnaire for the measurement of creativity in TV ad:................................................... 35 Appendix .............................................................................................................................. 36 List of Tables Table 1 Conceptualizations of ad creativity............................................................................ 13 Table 2 Determinants of divergence with examples .............................................................. 16 Table 3 Questions that identifies the factors.......................................................................... 18 Table 4 Selected ads ................................................................................................................ 19 Table 5 Factors responsible for creativity.............................................................................. 20 Table 6 F Test for comparing variance on the basis of Originality........................................ 23 Table 7 Independent t Test assuming unequal variance on the basis of Originality ............ 23 Table 8 F test for comparing variance on the basis of Flexibility........................................... 24 Table 9 Independent t Test assuming unequal variance on the basis of Flexibility ............. 24 Table 10 F test for comparingvariance on the basis of Synthesis ......................................... 25 Table 11 Independent t Test assuming equal variance on the basis of Synthesis ................. 25 Table 12 F test for comparingvariance on the basis of Elaboration..................................... 26 Table 13 Independent t Test assuming equal variance on the basis of Elaboration............. 26 Table 14 F test for comparingvariance on the basis of Artistic Value................................... 27 Table 15 Independent t Test assuming equal variance on the basis of Artistic Value .......... 27 Table 16 F test for comparingvariance on the basis of Relevance........................................ 28 Table 17 Independent t Test assuming equal variance on the basis of Relevance................ 28 Table 18 Ranking of Ads.......................................................................................................... 30
  • 7. 7 Introduction Advertising is defined as "Any paid form of non personal presentation of goods, ideas or services by an identified sponsor". Paid aspect means that the time slot for the advertising message is brought. Non personal presentation means that advertising involves mass media. Advertising is a promotional tool for building brand or brand equity. It can also stimulate demand for a product category. In 20l0, total spending on advertising, worldwide surpassed USD 442 trillion. (Price Waterhouse Coopers, 2011)1. Research testifies that advertising has a direct effect on firm performance, such as sales, profit (Erickson and Jacobson, 1992)2, brand equity (Aaker, 1996; Keller, 1998)3, and firm value. Indirectly, via increased brand equity, advertising spending can lead to increased price premiums and lower price sensitivity (Ailawadi, Neslin, and Lehmann, 2003)4, contribute to greater product differentiation (Kirmani and Zeithaml, 1993)5, and work as a protection against substitute products. However, research show that advertising effectiveness, estimated by advertising elasticity (the effect of an increase or decrease in advertising spending on the market share or sales) is as low as zero to 0.2, meaning that not all advertising is beneficial for the firm (Vakratsas and Ambler, 1999; Tellis, 2009)6. One reason might be that the amount of advertising consumers are exposed to have increased markedly and consumers pay less attention to ads and often hold a negative opinion about advertising in general (Grusell, 2008; Rosengren, 2008)7. Advertisers face the challenge of securing advertising effectiveness by producing advertisement that gets the consumers' attention and shape their attitudes and behaviour. One suggested way to reach these objectives is creativity. Both influential advertising professionals such as David Ogilvy (Ogilvy, 1983) and Bill Bernbach, and industry awards such as the Clio (www.clioawards.com) and One Show (www.oneclub.org) support the notion that what makes advertising effective is creative excellence. David Ogilvy once said “If it doesn’t sell it isn’t creative”. Creativity is probably most commonly used term in advertising. The people who develop ads are known as creative types. Advertising agencies develop their reputation for their creativity. Stephan Vogel, Ogilvy & Mather Germany’s chief creative officer said “Nothing is more efficient than creative advertising. Creative advertising is more memorable, longer lasting, works with less media spending, and builds a fan community…faster.”( Reinartz W, Saffert P.-2013)8 , Now an important question arises: What is meant by creativity in advertising?
  • 8. 8 Different Perspectives on Advertising Creativity Perspectives on what constitutes creativity in advertising differ. At one extreme are people who argue that advertising is creative only if it sells the product. An advertising message’s or campaign’s impact on sales counts more than whether it is innovative or wins awards. At the other end of the continuum are those who judge the creativity of an ad in terms of its artistic or aesthetic value and originality. They contend creative ads can break through the competitive clutter, grab the consumer’s attention, and have some impact. As you might expect, perspectives on advertising creativity often depend on one’s role. A study by Elizabeth Hirschman examined the perceptions of various individuals involved in the creation and production of TV commercials, including management types (brand managers and account executives) and creative’s (art director, copywriter, commercial director, and producer). She found that product managers and account executives view ads as promotional tools whose primary purpose is to communicate favourable impressions to the marketplace. They believe a commercial should be evaluated in terms of whether it fulfils the client’s marketing and communicative objectives. The perspective of those on the creative side was much more self-serving, as Hirschman noted: In direct contrast to this client orientation, the art director, copywriter, and commercial director viewed the advertisement as a communication vehicle for promoting their own aesthetic viewpoints and personal career objectives. Both the copywriter and art director made this point explicitly, noting that a desirable commercial from their standpoint was one which communicated their unique creative talents and thereby permitted them to obtain “better” jobs at an increased salary9. In her interviews, Hirschman also found that brand managers were much more risk averse and wanted a more conservative commercial than the creative people, who wanted to maximize the impact of the message. What constitutes creativity in advertising is probably somewhere between the two extremes. To break through the clutter and make an impression on the target audience, an ad often must be unique and entertaining. Research has shown that a major determinant of whether a commercial will be successful in changing brand preferences is its “likability,” or the viewer’s overall reaction.
  • 9. 9 Indian Advertising Overview There has been a long tradition of advertising in India since the first newspapers published in India in the 19th Century carried advertising. The first advertising agency was established in 1905, B. Datram and Company, followed by The India-Advertising Company in 1907, the Calcutta Advertising agency in 1909, S.H.Bensen in 1928, J. Walter Thompson Associates through its Indian associate, Hindustan Thompson Associates in 1929, Lintas (Lever international Advertising Services) in 1939 and McCann Erikson in 1956. Advertising expenditure in the 1950s was estimated at $US 300,000. Under the more socialist political environment of the 1960s and 1970s there was little incentive for companies to advertise because advertising was not tax deductible. In the 1970s there was a 58% growth in the number of registered agencies from 106 in 1969 to 168 in 1979, and this included a growth in Indian agencies. The first advertising appeared on state television in 1976. With the opening of the economy in the 1980s there was a growth in the number of alliances with multinational agencies and an expansion in advertising though foreign network participation in agency ownership was limited. In 1987 Hindustan Thompson was affiliated to J. Walter Thompson. Lintas, the 2nd ranking agency, held only 4% of its subsidiary, as did Ogilvie and Mather. Saatchi and Saatchi/Compton had minority interests in Compton as did Lintas. A study done in 1984 of the largest companies in India found that the ratio of advertising expenditure to sales had risen from .64 in 1976, to .71 in 1980 to .74 in 1984. Foreign controlled corporations had the dominant share of total advertising expenditure, and 80% of these were in the consumer goods sectors. Advertising was very concentrated with the top 50 advertisers accounting for 80% of the advertising spending and the top 10 advertisers made up 40% of that figure, 32% of the total. The largest advertiser throughout the period was Hindustan Lever which was nearly 10% of the advertising budget of the corporate sector companies. Pharmaceutical companies were also significant advertisers at this time. The 50s The decade: It was the decade when Indian advertising took baby steps in creativity. Indian advertising began to do creative work in India. Earlier, most creative work would be done out of Fleet Street
  • 10. 10 The AD: Lifebuoy — initially called as Royal Disinfectant Soap — entered India in 1895. Despite the occasional ad that focused on Lifebuoy's ability to fight body odour, most of its advertising over the last century has been pitched on one quality of that bar: kill germs The AD: The Mahatma was a fan of Singer sewing machines, calling it "one of the few useful things ever invented". The machines came to India in 1870 and Gandhi lugged it from jail to jail. This straightforward ad extols Singer's "100 years of experience" The 60s The Decade: It was decade of professionalism in the advertising industry as advertising agencies and clients established long-term relationships. The 60s saw the birth of the 'utterly butterly delicious' campaign of Amul The AD: Inspired by the 'man in the Hathaway Shirt' ad by David Ogilvy — which chose an aristocratic but unconventionally good looking man with an eye patch as a model — Zodiac chose a bearded, well built man as its model The AD: A smiling, blissfully in love couple was the centerpiece of this iconic advertising campaign for Wills cigarettes. The 'Made for Each Other' contest for the perfect couple was launched in 1969 The 70s The Decade Advertising became more scientific as National readership Survey (NRS) happened and MBAs from B-schools were hired for client servicing roles The AD: From Karen Lunel in the 70s to Preity Zinta in the 90s — the damsel in the waterfall. Do we need to say more? The AD: Before Rekha morphed into a vision in chic saris, she endorsed Parle's soft drink Gold Spot The 80s The Decade: After the colour telecast of Asiad games, television took off in India. The golden age of Indian advertising had just begun. The AD: Battery ads are not known for their edgy nature. Rediffusion's 'Give me Red' camp blew away that notion
  • 11. 11 The AD: Ramayan, Mahabharata and Lalitaji's pearls of wisdom on which washing powder made your whites look whiter was hard to miss on Sunday morning television. The 90s The Decade: India liberalized. Global brands like Pepsi rushed. Yeh Dil Maange more happened. And Cannes was conquered. The AD: Ericsson used a misunderstanding and the following discomfiture to push their slick mobile phone The AD: We don't strip. We are Indians. Tuffs, a shoe brand, laid waste to that perception in this ad which got the moral brigade all exercised 2000 onwards The Decade: TVCs evolved, gaining global recognition. Digital advertising found its feet The AD: As mobile service providers lined up to provide their services, Hutch came up with the killer line: "Wherever you go, the network follows you." Vodafone bought Hutch out, but the pug stayed The AD: Teeth that double up as chandeliers, lamps and sources of light. Exaggeration worked for this chewing gum ad. Digitalization has opened up new avenues for brand promotions making direct customized marketing possible now.
  • 12. 12 Literature Review Advertising creativity is the ability to generate fresh, unique, and appropriate ideas that can be used as solutions to communications problems. In the literature, definitions differ but most are similar to Leo Burnett's approach that ad creativity is the art o f establishing new and meaningful relationships between previously unrelated things in a manner that is relevant, believable, and in good taste, but which somehow presents the product in a fresh new light" Amabile suggests that a ‘product or response will be judged creative to the extent that it is a novel and appropriate, useful, correct, or valuable response to the task at hand. . .’ (1996: 5, emphasis added)10. Similarly, Tellis defines creativity as ‘productive divergence’ (1998).The main difference in past definition is whether ad creativity is determined by one or two factors. The first approach is to define creativity as divergence. Divergence can be defined as the extent to which an ad contains brand or execution elements that are different, novel, unusual, original, unique, etc. Till and Baack11 (2005 ,p.49) noted:"creative advertisements have been consistently defined, at least in part, as novel and/or original." The second approach to defining ad creativity is that it has two determinants: divergence and relevance (, Smith and Yang 2004)12. Here, divergence is defined as originality and relevance is defined as the extent to which at least some ad/brand elements are meaningful, useful, or valuable to the consumer. However, advertising research has presented minimal theoretical development of divergence and relevance and has usually operationalized them in a narrow manner.
  • 13. 13 Conceptualizations of ad creativity Table 1 Conceptualizations of ad creativity
  • 14. 14 Conceptualization of divergence and creativity Based on the psychological and marketing literature reviewed, creative ads are defined as those that are both divergent and relevant. Divergence- The first and most fundamental characteristic of ad creativity is divergence – the ad must contain elements that are novel, different, or unusual in some way. While the concept of divergence is clearly central to creativity it has received surprisingly little development in marketing/advertising. Usually, it is represented as a one dimensional construct (e.g. originality or novelty) with little conceptual development. This is an important omission because divergence plays a major role and is a complex construct. Relevance- While divergence is central to any definition of creativity, the ad also must be relevant – it must be meaningful, appropriate or valuable to the audience. Thus, relevance can be thought of as a stimulus property where some aspect of an advertisement is important, meaningful, or valuable to the consumer. Normally, relevance would be expected to be related to the brand/informational properties of the ad (e.g. was useful information attained). However, relevance can also be produced by execution elements such as music. Indeed, at least two specific types of relevance can be important for advertising: Ad–consumer relevance- This type of relevance is achieved when stimulus properties of the ad create a meaningful link to the consumer. For example, using Beatles music in an ad could create a meaningful link to Baby Boomers and, thereby, make the ad relevant to them. Brand–consumer relevance- This type of relevance occurs when an ad creates a meaningful link between the brand and the consumer. For example, the ad could make the brand seem right by showing it being used in circumstances familiar to the consumer Effectiveness- A third characteristic found in some definitions of creativity in advertising is the notion of effectiveness– the ad must be productive or capable of achieving its goals. However, in this conceptualization, incorporating the notion of effectiveness confounds advertising creativity with its consequences. That is, creative ads are defined by some researchers as ones that are effective at achieving their goals. However, the primary reason
  • 15. 15 why researchers and advertising practitioners are interested in advertising creativity is as an explanation for why some ads are more effective at achieving their goals than others. To make effectiveness part of creativity itself is to eliminate its usefulness as an explanatory variable. It is illogical to say that ads are more effective because they are creative, if they are creative, in part, because they are more effective. Therefore, we argue that notions of effectiveness, productivity, and impact should not be part of the definition of ad creativity. Ad versus brand elements- It is also important to identify two different types of ad elements. First, with few exceptions, ads usually contain prominent brand-related (or ‘information’) elements. These include the persuasive message, pictures of the brand, showing new uses for the product, and so on. In addition, the ad also contains some non- brand (or ‘execution’ elements) that are not necessarily related to the brand. These would include the layout and design, use of non-brand photographs or graphics, colour, music and other ‘peripheral’ cues. This conceptualization is consistent with distinctions between execution factors and messages factors recognized in past advertising research Focus on divergence- While both divergence and relevance are determinants of ad creativity, relevance has received extensive treatment in the advertising literature under the term ‘involvement’. Conversely, divergence has received very little attention. Indeed, the shows that advertising applications of creativity have been primarily one dimensional in the development of the divergence construct. This is problematic because divergence is the most primary element of creativity and needs to be better understood and modelled. Accordingly, the next section develops the divergence component in significantly greater detail than previous advertising models.
  • 16. 16 Determinants of divergence with examples Table 2 Determinants of divergence with examples
  • 17. 17 Divergence is measured by five factors  Flexibility— Ads that contain different ideas or switch from one perspective to another. An ad scoring high on flexibility smoothly links the product to a range of different uses or ideas. For example, a commercial for the Kraft Foods coffee brand Jacobs Krönung, which aired in Germany in 2011 and 2012, showed a man facing various domestic challenges (washing dishes, sewing a button on a jacket, dicing an onion, and making a bed) while a group of women enjoyed a cup of coffee together.  Originality— Ads that contain elements that are rare, surprising, or move away from the obvious and common place. An original ad comprises elements that are rare or surprising, or that move away from the obvious and commonplace. The focus is on the uniqueness of the ideas or features contained in the ad. An ad can diverge from norms or experiences by applying unique visual or verbal solutions, for instance. Many advertising campaigns are anything but original. The prototypical detergent spot shows a homemaker satisfied with an even whiter wash; perfumes feature picture-perfect models; and cars cruise through beautiful landscapes free of traffic. One campaign we studied that excelled in the originality dimension was the surprising visualization of the inside of a vending machine in the Coca-Cola commercial “Happiness Factory.”  Elaboration— Ads that contain unexpected details, or finish and extend basic ideas so they become more intricate, complicated, or sophisticated. Many ads contain unexpected details or extend simple ideas so that they become more intricate and complicated. One good example is an ad for Ehrmann fruit yogurt—one of the leading brands in Germany—in which a woman eating yogurt licks her lips to reveal that her tongue looks just like a strawberry (Ehrmann made different versions of the spot for different flavours), considerably deepening the idea of fruitiness in yogurt. In another example, an ad for Wrigley’s 5 gum, a man is submerged in tiny metal balls that bounce off his skin to represent the tingle one feels while chewing the gum  Synthesis—Ads that combine, connect, or blend normally unrelated objects or ideas. This dimension of creativity is about blending or connecting normally unrelated objects or ideas. For example, Wrigley aired a commercial that featured rabbits
  • 18. 18 corralled like cattle and fed bananas, berries, and melon, making their buckteeth grows in as Juicy Fruit Squish chewing gum. The commercial combines unrelated objects (rabbits and chewing gum) to create a divergent story line.  Artistic Value— Ads that contain artistic verbal impressions or attractive colours or shapes. Ads with a high level of artistic creativity contain aesthetically appealing verbal, visual, or sound elements. Their production quality is high, their dialogue is clever, their colour palette is original, or their music is memorable. As a result, consumers often view the ads as almost a piece of art rather than a blatant sales pitch. One ad we studied, which scored among the highest in artistic value, was an animated commercial for DANONE’s Fantasia yogurt that aired at the end of 2009. It showed a woman floating on a flower petal through a sea of Fantasia yogurt, surrounded by flowers laden with fruits. Questions that identifies the factors ORIGINALITY The ad was out of ordinary Ad broke away from stereotypical thinking ELABORATION The ad contained a large number of ideas The ad contains numerous details FLEXIBILITY The ad contained ideas that moved from one subject to another The ad connected objects that are usually unrelated SYNTHESIS The ad brought unusual items together. ARTISTIC VALUE Rate ads - Images/ Visuals Rate ads - Tagline/ Jingles Rate ads - Music Rate ads - Story The ad allowed me to form images I have not directly experienced The ability to arrange shapes and colours in attractive way DIVERGENCE The ad was relevant to the product being promoted? The ad contain meaningful link between brand and consumer Table 3 Questions that identifies the factors
  • 19. 19 ResearchMethod Project Objective The objective of this project is to  To elaborate that use of creativity differs by category i.e. it is different across beverages and cosmetics. Research Design Quantitative research was conducted to collect data on respondents’ perception of creativity in Indian ads Data Collection Simple Random Sampling technique has been used. In Simple Random Sampling each and every item in the population has an equal chance of inclusion in the sample and each one of the possible samples, in case of finite universe, has the same probability of being selected. Sampling frame selected for the survey is students of FMS-BHU. The duration of the survey is 2 months. The population size of Howrah has been divided into 24 strata, and from these strata samples have been collected. Questionnaire Method has been used for collecting primary data. Sample size for the survey is 118. Selection of ads All the advertisements picked for this study were among the top five entries in their respective categories in the Effie awards. Effie award is the most prestigious awards for advertising in India. Further, ads pertaining to beverages and cold drink and cosmetics and toiletries were only selected. First five ads belong to beverages and cold drink category while the last five ads belong to cosmetics and toiletries category. Since both these segments are a low value purchase, hence ads form an important task of positioning the product in the mind of the consumer and shaping their purchase decision. On the basis of above parameters the selected ads are as follows Beverages/ Food Drink Cosmetics/ Toiletries Coca Cola Lifebuoy Tata Tea Gillette Nescafe Jonhson & Johnson Bournvita Cinthol Amul Parachute Ayurvedic Oil Table 4 Selected ads
  • 20. 20 The ads were analysed on the basis of 15 questions which was divided into various factors that are determinants of creativity ORIGINALITY The ad was out of ordinary Ad broke away from stereotypical thinking ELABORATION The ad contained a large number of ideas The ad contains numerous details FLEXIBILITY The ad contained ideas that moved from one subject to another The ad connected objects that are usually unrelated SYNTHESIS The ad brought unusual items together. ARTISTIC VALUE Rate ads - Images/ Visuals Rate ads - Tagline/ Jingles Rate ads - Music Rate ads - Story The ad allowed me to form images I have not directly experienced The ability to arrange shapes and colours in attractive way DIVERGENCE The ad was relevant to the product being promoted? The ad contain meaningful link between brand and consumer Table 5 Factors responsible for creativity Statistical Hypothesis Used13  To examine the mean value of ads independent t test was used. Samples drawn randomly from different populations are termed independent samples. As in the case for one sample, the hypothesis could relate to means or proportions. Means- In the case of means for two independent samples, the hypothesis take the following form: Ho : µ1 = µ2; H1 : µ1 ≠ µ2; The two populations are sampled and the means and variances are computed based on samples of sizes n1 and n2. If both populations are found to have the same variance, a pooled variance estimate is computed from the two sample variances as follows: The standard deviation of the test statistic can be estimated as
  • 21. 21 The appropriate value of t can be calculated as The degrees of freedom in this case are (n1+ n2– 2). If the two populations have unequal variances, an exact t cannot be computed for the difference in sample means. Instead, an approximation to t is computed. The number of degrees of freedom in this case is usually not an integer, but a reasonably accurate probability can be obtained by rounding to the nearest integer. An F testof sample variance may be performed if it is not known whether the two populations have equal variance. In this case the hypothesis are: The F statistic is computed from the sample variances as follows: As can be seen, the critical value of the F distribution depends on two sets of degrees of freedom: those in the numerator and those in the denominator. The critical values of F for various degrees of freedom for the numerator and denominator are given in the Statistical Appendix. If the probability of F is greater than the significance level α, H0 is not rejected and t based on the pooled variance estimate can be used. On the other hand, if the probability of F is less than or equal to α, H0 is rejected and t based on a separate variance estimate is used.
  • 22. 22 Assumptions for T-test.  Variance is normally distributed.  Mean is known.  Population variance is estimated from sample. X is normally distributed with mean µ and unknown population variance σ2, which is estimated by sample variance S2. Hypothesis It has been proposed to test the following hypothesis with the help of sample data. Ho: Ads of both the categories are same on the basis of Originality. Ho: Ads of both the categories are same on the basis of Flexibility. Ho: Ads of both the categories are same on the basis of Synthesis. Ho: Ads of both the categories are same on the basis of Elaboration. Ho: Ads of both the categories are same on the basis of Artistic Value. Ho: Ads of both the categories are same on the basis of Relevance. Testing of Hypothesis The above hypothesis were tested with 95 % confidence interval (α = 0.05, level of significance)
  • 23. 23 Data Analysis and Interpretation Originality Ho: Ads of both the categories are same on the basis of Originality. H1: Ads of both the categories are different on the basis of Originality. First, we make a hypothesis that Ho: Variance of both the categories is same on the basis of Originality. H1: Variance of both the categories is different on the basis of Originality, And an F Test is performed Beverages Cosmetics Mean 3.64 3.23 Variance 0.26 0.15 Observations 117 117 df 116 116 F 1.75 P(F<=f) one-tail 0.00135742 F Critical one-tail 1.35 Table 6 F Test for comparing variance on the basis of Originality Since p value is less than level of significance (0.05), then null hypothesis is rejected. Then a t test assuming unequal variances is performed. Beverages Cosmetics Mean 3.64 3.23 Variance 0.26 0.15 Observations 117 117 Hypothesized Mean Difference 0 Df 216 t Stat 6.90 P(T<=t) one-tail 2.86363E-11 t Critical one-tail 1.65 P(T<=t) two-tail 5.72726E-11 t Critical two-tail 1.97 Table 7 Independent t Test assuming unequal variance on the basis of Originality Since, p value is less than level of significance (0.05), then null hypothesis is rejected i.e. ads of both the categories are not same on the basis of originality.
  • 24. 24 Flexibility Ho: Ads of both the categories are same on the basis of Flexibility. H1: Ads of both the categories are different on the basis of Flexibility. First, we make a hypothesis that Ho: Variance of both the categories is same on the basis of Flexibility. H1: Variance of both the categories is different on the basis of Flexibility, And an F Test is performed Beverages Cosmetics Mean 3.017 2.78 Variance 0.32 0.22 Observations 117 117 df 116 116 F 1.45 P(F<=f) one-tail 0.023 F Critical one-tail 1.36 Table 8 F test for comparing variance on the basis of Flexibility Since p value is less than level of significance (0.05), then null hypothesis is rejected. Then a t test assuming unequal variances is performed. Beverages Cosmetics Mean 3.017 2.79 Variance 0.321084586 0.22 Observations 117 117 Hypothesized Mean Difference 0 df 224 t Stat 3.37 P(T<=t) one-tail 0.000431451 t Critical one-tail 1.65 P(T<=t) two-tail 0.000862902 t Critical two-tail 1.97 Table 9 Independent t Test assuming unequal variance on the basis of Flexibility Since, p value is less than level of significance (0.05), then null hypothesis is rejected i.e. ads of both the categories are not same on the basis of flexibility.
  • 25. 25 Synthesis Ho: Ads of both the categories are same on the basis of Synthesis. H1: Ads of both the categories are different on the basis of Synthesis. First, we make a hypothesis that Ho: Variance of both the categories is same on the basis of Synthesis. H1: Variance of both the categories is different on the basis of Synthesis, And an F Test is performed Beverages Cosmetics Mean 2.92 2.95 Variance 0.44 0.40 Observations 117 117 df 116 116 F 1.07 P(F<=f) one-tail 0.34 F Critical one-tail 1.35 Table 10 F test for comparing variance on the basis of Synthesis Since p value is greater than level of significance (0.05), then null hypothesis is not rejected. Then a t test assuming equal variances is performed. Beverages Cosmetics Mean 2.92 2.95 Variance 0.44 0.40 Observations 117 117 Pooled Variance 0.42 Hypothesized Mean Difference 0 df 232 t Stat -0.35 P(T<=t) one-tail 0.36 t Critical one-tail 1.65 P(T<=t) two-tail 0.72 t Critical two-tail 1.97 Table 11 Independent t Test assuming equal variance on the basis of Synthesis Since, p value is less than level of significance (0.05), then null hypothesis is not rejected i.e. ads of both the categories are same on the basis of synthesis.
  • 26. 26 Elaboration Ho: Ads of both the categories are same on the basis of Elaboration. H1: Ads of both the categories are different on the basis of Elaboration. First, we make a hypothesis that Ho: Variance of both the categories is same on the basis of Elaboration. H1: Variance of both the categories is different on the basis of Elaboration, And an F Test is performed Beverages Cosmetics Mean 3.2 2.85 Variance 0.34 0.30 Observations 117 117 df 116 116 F 1.14 P(F<=f) one-tail 0.25 F Critical one-tail 1.35 Table 12 F test for comparing variance on the basis of Elaboration Since p value is greater than level of significance (0.05), then null hypothesis is not rejected. Then a t test assuming equal variances is performed. Beverages Cosmetics Mean 3.2 2.85 Variance 0.34 0.30 Observations 117 117 Pooled Variance 0.32 Hypothesized Mean Difference 0 df 232 t Stat 4.77 P(T<=t) one-tail 1.63955E-06 t Critical one-tail 1.65 P(T<=t) two-tail 3.2791E-06 t Critical two-tail 1.97 Table 13 Independent t Test assuming equal variance on the basis of Elaboration Since, p value is less than level of significance (0.05), then null hypothesis is rejected i.e. ads of both the categories are different on the basis of elaboration.
  • 27. 27 Artistic Value Ho: Ads of both the categories are same on the basis of Artistic Value. H1: Ads of both the categories are different on the basis of Artistic Value. First, we make a hypothesis that Ho: Variance of both the categories is same on the basis of Artistic Value. H1: Variance of both the categories is different on the basis of Artistic Value, And an F Test is performed Beverages Cosmetics Mean 3.58 3.14 Variance 0.20 0.18 Observations 117 117 df 116 116 F 1.11 P(F<=f) one-tail 0.29 F Critical one-tail 1.36 Table 14 F test for comparing variance on the basis of Artistic Value Since p value is greater than level of significance (0.05), then null hypothesis is not rejected. Then a t test assuming equal variances is performed. Beverages Cosmetics Mean 3.58 3.13 Variance 0.20 0.177 Observations 117 117 Hypothesized Mean Difference 0 df 231 t Stat 7.86 P(T<=t) one-tail 7.33557E-14 t Critical one-tail 1.65 P(T<=t) two-tail 1.46711E-13 t Critical two-tail 1.97 Table 15 Independent t Test assuming equal variance on the basis of Artistic Value Since, p value is less than level of significance (0.05), then null hypothesis is rejected i.e. ads of both the categories are different on the basis of artistic value.
  • 28. 28 Relevance Ho: Ads of both the categories are same on the basis of Relevance. H1: Ads of both the categories are different on the basis of Relevance. First, we make a hypothesis that Ho: Variance of both the categories is same on the basis of Relevance. H1: Variance of both the categories is different on the basis of Relevance, And an F Test is performed Beverages Cosmetics Mean 3.65 3.2 Variance 0.29 0.32 Observations 117 117 df 116 116 F 0.89 P(F<=f) one-tail 0.27 F Critical one-tail 0.73 Table 16 F test for comparing variance on the basis of Relevance Since p value is greater than level of significance (0.05), then null hypothesis is not rejected. Then a t test assuming equal variances is performed. Beverages Cosmetics Mean 3.65 3.29 Variance 0.29 0.33 Observations 117 117 Hypothesized Mean Difference 0 df 231 t Stat 5.03 P(T<=t) one-tail 0.00 t Critical one-tail 1.65 P(T<=t) two-tail 0.00 t Critical two-tail 1.97 Table 17 Independent t Test assuming equal variance on the basis of Relevance Since, p value is less than level of significance (0.05), then null hypothesis is rejected i.e. ads of both the categories are different on the basis of relevance.
  • 29. 29
  • 30. 30 Findings Use of creativity differs by category- Levels of creativity vary significantly across product categories. If we compare the mean score of ads of different category, we will come to know in almost all the aspects of creativity (Originality, Flexibility, Elaboration, Artistic Value, and Relevance) except synthesis, Beverages are far more creative than cosmetics. In beverages, advertisers and customers tend to favour higher levels of creativity, whereas in cosmetics/ toiletries, campaigns focus on showing the actual use of the product, albeit in an idealized environment. One reason could be that it is still important in cosmetics to deliver factual proof points of performance features. When products are functional and oriented toward clear consumer goals (cleaning garments with detergents, protecting skin with body lotion), unorthodox approaches are less preferred. In contrast, when products are easily understood, similar, and tied to personal preferences (quenching thirst with a soda, for instance, or enjoying a cup of coffee), an out-of-the-ordinary approach can be more effective in stimulating sales. The ranking of ads on the basis of mean score in different statements is as follows Ads Mean Score Ranking Coca Cola 53.93 3 Tata Tea 48.73 5 Nescafe 45.86 8 Bournvita 51.98 4 Amul 57.25 1 Lifebuoy 55.78 2 Gillette 47.14 7 Johnson & Johnson 47.83 6 Cinthol 38.00 10 Parachute AAO 41.58 9 Table 18 Ranking of Ads
  • 31. 31 Limitations of the study  One of the major limitations of this project is that some argue that sales are an actual measurement of creativity, which has not been included in our studies.  This study is confined to the sample of FMS-BHU. Hence, it may not reflect the actual case that creativity is assessed in a similar way in larger sample size  No follow up studies have been performed. Without repetition of studies it is hard to say that the effects that are discussed in this thesis will be consistent over time or how long they will endure.  Cosmetics ads were shown at the end of the survey. Hence, it created biasness among the respondents.
  • 32. 32 Conclusion Creativity has the ability to enhance processing of an advertisement, which in turn can result in a more elaborate cognitive response in the form of stronger brand recall and an improved understanding of the advertising message. Through a unique combination of divergent, relevant, well-crafted and humorous content, creative advertising can offer value to the consumer, which translates into more favorable attitudes towards the advertisement and the advertised brand. These attitudes have been shown to have an impact on purchase intentions. Hence, creative advertisements have the potential to impact sales both directly via enhanced persuasion and indirectly via enhanced brand attitudes. Therefore, advertisers should pursue a creative strategy in cases where consumer brand attitude can be translated into increased sales. As consumers become more advertising savvy, traditional methods of persuasion might become less efficient. Creative advertising might therefore be of extra interest, as it can benefit advertisers by offering real value to consumers as well as a chance to communicate with consumers without the risk of triggering persuasion knowledge. By offering creative advertisements, brands provide real value to consumers in exchange for their attention. Using the "right" judge of advertising creativity i.e. the end consumers, the study shows that although consumers' and advertising professionals' judgments of creativity work in the same way - there is a positive relationship between their creativity assessments and advertising. As shown above, advertisers and brand managers have much to gain from considering the level of creativity in their advertising. Advertisers can directly influence the impact of their advertisement by increasing the level of creativity. Brand managers can use creative advertising as a route to enhance brand attitudes among consumers, which in turn should result in increased sales. Advertising creativity is not only beneficial for the advertised brand but also for the individuals in the audience, as such creativity can rub off on the audience. Advertising creativity is therefore not only a mission for advertisers - it is also relevant on a macro level for media partners, individuals and the advertising industry. Creativity can shift advertising from an "unavoidable evil" to content that offers value to the individual consumer. As this might enhance society's general attitude towards advertising, creativity should be a goal for the entire advertising industry in relation to refurbishing its somewhat tarnished reputation. In addition, creativity can enable media owners to offer additional value to their readers. This might elevate advertising to turn from a necessary source of revenue in
  • 33. 33 to a strategic tool that can be used to offer value to the reader and, in the long run, to increase the value of the media outlet.
  • 34. 34 BIBLIOGRAPHY 1. Wilkofsky Gruen Associates In c, (20 11 ), "Global entertainment and media outlook 2011-2015", Price Waterhouse Coopers, New York, 2. US. Erickson, Gary and Jacobson, Robert (1992), “Gaining Competitive Advantage through Discretionary Expenditures: The Returns to R&D and Advertising", Management Science, 38 (9), 1264-79. Science, 14 (3), 141-50 3. Aaker, David (1996), Building Strong Brands. New York: The Free Press. 4. Ailawadi, Kusum L., Neslin, Seott A., and Lehmann, Donald R. (2003), "Revenue Premium as an Outcome Measure of Brand Equity", Journal of Marketing, 67 (October), 1-17. 5. Kirmani, Amna and Zeithaml, Valarie A. (1993), “Advertising, Perceived Quality, and Brand Image,” in Brand Equity and Advertising, David A. Aaker and Alexander L. Biel, eds. Hillsdale, NJ: Lawrence Erlbaum Associates, 143-82. 6. Vakratsas, Demetrios and Ambler, Tim (1999), “How Advertising Works: What Do We Really Know?” Journal of Marketing, 63 January), 26-43. 7. Dahlen, Micael, Rosengren, Sara, and Törn, Fredrik (2008)," Advertising Creativity Matters", Journal of Advertising Research, 48 (Sep), 392-403. 8. Reinartz W, Saffert P. (2013), “Creativity in Advertising: When It Works and When It Doesn’t” Harvard Business Review. June-R1306H 9. Belch, G.E., M.A.Belch.2004.Introduction to Advertising and Promotion: An Integrated Marketing Communications Perspective, 6thed. McGraw-Hill/ Irwin, Homewood, IL. 10. Amabile, Theresa (1982) “The Social Psychology of Creativity: A Consensual Assessment Technique", Journal of Personality and Social Psychology, 43 (5), 997- 1013. 11. Till,B.D.,D.W.Baack.2005.Recall and persuasion: Does creativity atter?/.Advertising34(3)47-5 12. Smith, R.E.,X .Yang.2004.Toward a general theory of creativity in advertising: Examining the role of divergence. Marketing Theory HI/2)29-55 13. Malhotra, N and Dash, S (2011), 6th ed Marketing Research An Applied Orientation. Pearson Prentice Hall.
  • 35. 35 Annexure Questionnaire for the measurement of creativity in TV ad: Name:…………………………………………………………………………………………..Age:… …………………… Gender:………… Family Income: …………....Native Place:…………………………… (Like urban, semi-urban, etc.) Give the numbers from 1 to 5 (in increasing order) for the given ads on the basis of following criterion Beverages/ Food Drinks Cosmetics/ Toiletries 1 2 3 4 5 6 7 8 9 10 1. The ad was out of ordinary 2. Ad broke away from stereotypical thinking 3. The ad contained a large number of ideas 4. The ad contained ideas that moved from one subject to another 5. The ad connected objects that are usually unrelated 6. The ad brought unusual items together. 7. The ad contains numerous details 8. Rate ads - Images/ Visuals 9. Rate ads - Tagline/ Jingles 10. Rate ads - Music 11. Rate ads - Story 12. The ad allowed me to form images I have not directly experienced 13. The ability to arrange shapes and colors in attractive way 14. The ad was relevant to the product being promoted? 15. The ad contain meaningful link between brand and consumer
  • 36. 36 Appendix T distribution
  • 37. 37
  • 38. 38
  • 39. 39 F distribution
  • 40. 40
  • 41. 41

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