INTRODUCTION:

Companies spend heavily on brand building through well-orchestrated marketing communication programs in line with their organizational vision. Advertising is appreciated as well as criticized by stake holder for benefits it brings and cost burden it puts on the firm. Marketing people and more particularly advertising department is continuously under pressure to justify their budget. The return on investment in advertising is usually long term and somewhat intangible. Under such circumstances it is important to study and put forward the differential effect that advertising has in revenue generation through the brand being advertised.

Since branding is painfully time consuming and expensive activity, so it is imperative to assess the importance of advertising, not only for creating awareness but also for its ability to actually engage consumers and favorably influence purchase decisions. A brand’s messages are received through series of filters that exists with in each consumer’s life. What settles into his/her brain is the only true image the brand has created. The rest are only intentions & wasted messages and may have no role to play in consumer decision making. This research intends to examine the effect that advertising has on consumers brand attitude and role of brand attitude on purchase decisions. Further an effort is made to analyze the consumer’s attitude towards buying branded products.

LITERATURE REVIEW:

Sengupta, (1990) has established that: as the world has entered into the third millennium, the national and international environment is surcharged with an all-round consumer hyperactivity, posing new challenges for the marketers. The last century witnessed many innovations, new concepts and techniques in the field of marketing. Inspired by the outstanding success of many Japanese companies, several national and multinational companies are spending huge amount of money in improving quality and in implementing the total quality management concept (Lambert, 1992). Chaturvedi (2003) reported that Indian shoppers seek emotional value more than the functional value of shopping and group pressure and WOM operates more apparently than advertised message. Their shopping at organized retails is based more on the entertainment value associated with malls than on the functional value of products communicated in advertisements. The marketers need to address the brand attitude formation process of both type of consumers, those who depend more on formal marketing communication and others who rely on informal and personal sources to frame their consumption related attitudes (Chatterje & Chaturvedi, 2012). Research suggests that perception of consumers towards advertising and its influence on purchase decision in general is changing and more studies are required to unearth the advertisement– brand attitude formation relationship (Paul, 2002; Lichtenstein, 1983). There are many brand/branding definitions and descriptions that focus on the methods used to achieve differentiation and to emphasize the benefits the consumers derive from purchasing brands through favorable brand attitude formation. There is a general agreement in the marketing literature that the brand is more than a name given to a product. It embodies a whole set of physical, social and psychological attributes and beliefs to consumers (Kotler, 1997; Schiffman et. al., 2010; Panda, 2004; Johri, 2007). A brand may mean different things to different consumers. While brand management may strive to communicate through marketing communication and advertisements a specific and consistent image to the market, consumers may develop different perceptions that underpin their brand attitude and purchase intentions of the brand (Rao, 1989, Parashuraman, 2008; Sengupta, 1990). There is need of research to advised and acknowledge the relationship between knowledge, attitude and behavior of consumers.

OBJECTIVES OF THE STUDY:

An effort has been made to analyze the impact of advertising on Brand awareness and consumer behavior, regarding purchases of branded products in major cities of Chhattisgarh. The objectives could be stated as follows:

1. To study the impact of advertisement on building favorable brand attitude.

2. Influence of advertisement message on purchase decision.

3. Attitude of consumers towards buying branded products.

METHODOLOGY AND DESIGN OF STUDY:

The study was performed in Bilaspur, Raigarh, Korba and Raipur in a period of two months during May and June 2014. A sample size of 200 is used for data collection through structured questionnaire. The sampling technique is Judgment and convenience sampling. The respondents were requested to fill the questionnaire at public places such as railway stations, bus stop, leisure visitors at Malls etc where they were waiting for one thing or other and they had ample time that they wanted to pass. The extent of Participation was appreciatable at such places. 50 questionnaires were filled at each city. Design of the research is descriptive and explanatory (Cooper and Schindler, 2009).

Suitable hypothesis is stated to test the ‘impact of advertisement on building brand attitude’. Five item construct is developed and used to study the respondents perception towards ‘impact of advertisement on building brand attitude (IABA)’. The consumer’s responses were measured on five point Likert’s summated scale. The items of the construct are as follows:

Construct 1

1. Brands that are advertised usually deliver better vale and are more beneficial.

2. I believe brands that are endorsed by celebrities as trustable.

3. Advertised brands offer better performance.

4. I talk favorably about the brands seen in advertisements.

5. Products that advertised are usually of better quality.

6. I switch to an unknown brand with similar packaging if priced lower.

Internal consistency alpha was 0.72 for this construct that is suitable conducting research in behavioral sciences (Nurnaly, 1997). The hypothesis is tested by analyzing the variance among the attitude of respondent collected through construct 1. If that there is no significant variance in attitude of consumers and variable ‘IABA’ has high mean value and we can safely infer that consumers perceive that brand attitude is positively influenced by advertising. In case there is significant difference in perception of consumers collected through construct 1, then further Posthoc analysis has to be done to study inter group variations in perception of consumers and identify factors that underpin the difference. Difference in brand attitude based on advertising is analyzed among various age groups and genders.

In the present study, second hypothesis is stated based on second objective to test the impact of advertising on purchase decision for branded products in major cities Chhattisgarh. To test the hypothesis about the ‘influence of advertisement on purchase decisions’ (the variable is named as ‘IAPD’) a one way ANOVA is conducted between two groups (two levels of a categorical variable) one who has purchased an advertised product and other ‘not purchased’ an advertised product in recent past mediated by their perception about influence of advertisement on purchase decisions (IAPD). Respondents were asked to mention whether they had made any recent purchase of advertised product or not. Then through seven items construct scaled on five point Likert scale influence of advertisement on their purchase decisions (IAPD) is captured. The items of construct are as follows:

Construct 2

1. While shopping and evaluating products to purchase, advertisements that I had seen surface in my mind.

2. My decision to make a purchase of branded product is influenced by advertisements.

3. Television commercial influences my brand choice.

4. While making a purchase decision I prefer that brand among brands on display which I have seen in advertisements.

5. While buying across the counter (Kirana stores) I tell the brand name to salesperson based on my memory of advertisements.

6. On seeing the advertisements post purchase I feel good about my purchase decision.

7. I choose brands as suggested by sales people.

The third objective is to study the Tendency of consumers to buy branded products and the variable is named as TCBBP. Five items construct (Construct 3 given below) with internal consistency 0.68 is developed and used to collect consumer’s tendency with respect to this variable.

Construct 3

1. Known brands usually boost my purchase confidence.

2. Family or friends appreciate when I buy branded products.

3. It is matter of prestige buying and using branded products.

4. I don’t need reference while buying branded products.

5. I take quick buying decisions for branded products.

The analysis was also done gender wise and hypothesized as both the genders do not differ in their attitudes towards branded products. A correlation analysis between variables IABA and TCBBP is used to validate the influence advertisement on building brand attitude. This test is based on premise that those respondent (consumers) having high scores on influence of advertising on brand attitude must also have high score on tendency towards buying advertised branded product. In case the value of correlation coefficient is positive and high one could infer that those consumers who build favorable brand attitude based on advertising also have tendency to buy such (branded) products. A low correlation coefficient value in turn implies that brand attitudes build through advertisement do not translate into purchase tendency of branded products. Since a strong attitude translates into behavior, a low correlation coefficient value will imply that advertisement doesn’t causes strong and permanent attitude towards branded products in general and hence influence of advertising on brand attitude is temporary and specific to brands being advertised leading to infer that to maintain the effect of advertisement on ‘brand purchase’ regular and continuous advertising is required.

Finally a three variable regression analysis test with IABA and IABP as independent and TCBBP as dependent variable is used to see systematic effect of Cognition (C) and Behavior (B) leading to Retained Attitude (RA) towards branded products that underpins the consumer tendency to buy branded products (C X B --> RA). This is called CBRA (may be pronounced as “k'abra”) framework for brand attitude based on advertising.

ANALYSIS AND FINDINGS:

1. Statement of Hypothesis based on First objective:

H1₀: ‘Advertisement has no impact of on building consumer brand attitude”

H1_a: “Advertisement has significant impact of on building consumer brand attitude”

The hypothesis is tested by analyzing the variance among the attitude of respondent collected through construct 1. ANOVA test (‘p’= 0.02) shows that there is no significant variance in attitude of consumers and we reject H1_{0. V}ariable ‘IABA’ has high mean value (Cumulative average IABA=3.9) so we can safely infer that consumers perceive that brand attitude is positively influenced by advertising.

2. Statement of Hypothesis and analysis based on second objective:

Ho: Purchase decision of branded products is independent of Advertisement.

H1: Advertisement does influence the purchase decision of branded products.

Analysis of the Relationship between Impact of advertisements and brand awareness is again done through one way ANOVA test with two levels of independent variable (1=purchased branded product recently and 2= not purchased branded product recently) and dependent variable IAPD, reflecting perception of influence of advertisement on purchase decision captured through construct 2 as mentioned above. The p=0.021 shows the two groups do not differ significantly in their perception towards influence of advertisement on purchase decision and we reject Ho, Null hypothesis. Therefore we infer that advertising indifferently influence all buyers to purchase advertised branded product.

3. Correlation coefficient between TCBBP and IABA ‘r’ = 0.78 is significantly high. This finding allows inferring that those consumers having high values on perception that advertising influences brand attitude they also tend to buy branded product. So it can be concluded that advertising not only build favorable brand attitude but also play important role in translating this attitude in purchase of branded products.

4. The mean value of TCBBP for male and female respondents do not differ significantly (‘p’=0.027) when tested through ANOVA at 0.05 level of significance. Hence it is concluded that influence of advertisement on both genders for buying advertised branded products is similar.

5. A regression analysis between IABA, IAPD as independent variable and TCBBP as dependent variable derives r-square as 0.118 (where, R = 0.343, constant=0.356, b₁=0.209 and b₂=0.190) significant at 10% Level of Significance with collinearity values (Tolerance and VIF) within limit. Though the variance in TCBBP explained by independent variables is about 12% but relation is significant and can’t be ignored.

Model:

TCBBP = 0.356 + 0.209IABA + 0.190IAPD

On the basis of this finding it can be concluded that consumers who develop positive brand attitude under influence of advertisement and consumers who purchase advertised products develop general tendency to buy advertised products even if they have not encountered an advertisement recently.

CONCLUSION AND SUGGESTION:

Advertising indifferently influence all buyers to purchase advertised branded product. Findings of this research indicate that advertising builds favorable attitude toward the brand advertised. It is also found that consumers favorable attitude influences purchase decision made by them and this attitude in general has profound effect on consumer’s tendency to buy advertised product repeatedly. The findings suggest that scope of advertising is broad and may have delayed impact on consumer’s intentions to buy branded product. The influence of advertising has lasting effect on buying branded product such that it builds a ‘pro-branded psychology’ among consumers that extends beyond the advertised product that consumer has been exposed recently to other products that has notion of ‘Brand’ in mind of buyer due to some old reference but may not been exposed in recent past. This article suggests that marketers should keep using advertising for building strong and favorable consumer attitude towards brand. Advertising is also found stimulating purchase decision and ultimately contributing towards revenue generation.

ACKNOWLEDGEMENT:

I am deeply indebted to Prof. L.P. Pateriya, Dean and Head, Department of Management Studies, Gurughasidas University, for his support, specifically in data analysis. I also thank to the students of this department for supporting the data collection and tabulation.

REFERENCES:

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ANNEXURE 1:

Questionnaire

(This questionnaire is part of Academic activity; data will be used purely for academic research. Your cooperation is solicited)

Filter Question:

1. Do you regularly buy products, Goods and Services for your personal or family use? Yes_____ No_______

2. Have you recently purchased a product after watching an advertisement? Yes_____ No_______

3. Is it worth buying branded products? Yes_____ No_______

A. Effect of advertising on consumer’s brand attitude.

Brands that are advertised usually deliver better vale and are more beneficial.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
I believe brands that are endorsed by celebrities as trustable.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
Advertised brands offer better performance.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
I talk favorably about the brands seen in advertisements.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
Products that advertised are usually of better quality.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree

B. Influence of Advertisement on buying branded products.

While shopping and evaluating products to purchase, advertisements that I had seen surface in my mind.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
My decision to make a purchase of branded product is influenced by advertisements.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
Television commercial influences my brand choice.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
While making a purchase decision I prefer that brand among brands on display which I have seen in advertisements.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
While buying across the counter (Kirana stores) I tell the brand name to salesperson based on my memory of advertisements.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
On seeing the advertisements post purchase I feel good about my purchase decision.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
I choose brands as suggested by sales people.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree

C. Attitude of consumers towards buying branded products

Known brands usually boost my purchase confidence.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
Family or friends appreciate when I buy branded products.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
It is matter of prestige buying and using branded products.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
I don’t need reference while buying branded products.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree
I take quick buying decisions for branded products.	Strongly Agree (5)_____(4)_____(3)______(2)______(1) Strongly Disagree

Age:__________ Highest Education:_________ Gender:__________

Received on 05.09.2014 Modified on 10.09.2014

Asian J. Management 5(4): Oct.- Dec., 2014 page 415-419