International Journal of Contemporary Research and Review CrossRef DOI: http://dx.doi.org/10.15520/ijcrr/2017/8/04/146 ISSN: 0976-4852 Influence of Advertising on Attitude of Young Indian Consumers – An Empirical Study Dr. Rajul Dutt1, Dr. Asma Zaheer2, Dr. Mairaj Salim3 Professor and Director, Faculty of Commerce and Management, Rama University, India.1 Assistant Professor (Marketing), Faculty of Economics and Business Administration King Abdul Aziz University, Jeddah. KSA2. Assistant Professor (e-Marketing), King Abdul Aziz University, Jeddah. KSA3. Accepted 2017-03-16-; Published 2017-04-10 Abstract: Purpose: Due to the changing dynamics of India Business over the last nearly two decades and advances seen in the Internet technology, there is a tremendous growth in Advertising sector understanding the consumers attitude towards advertising is therefore is of great significance. However this paper is attempts to examine the consumer attitude towards Advertising. Methodology: The aim of this research was to investigate the determinants of consumer‟s attitude towards advertising among300 faculty members of engineering/MCA colleges/Institutions. A total of 237 faculty members from private colleges in western U. P. India participated in this research .Six independent variables are determined to examine the influence for the study. The data were collected through personal administration and had 237 valid responses. Findings: The statistical outcome shows that in formativeness, entertainment positively relates to consumer‟s attitude towards advertising while Consumer Psychology (CP) was found to be negatively related to attitude towards advertising. Furthermore, it was found that in general there is more positive attitude towards advertising and therefore the more the consumers likes searching for product information, the more positive the attitude towards advertising will be. Key Words: Advertising, Attitude, Promotions, Media 1. Introduction: In a competitive and dynamic business world, advertisement is playing an important role and is now considered to be of great importance. Advertising does help in attracting large audience if it is carried out in a proper way and thereby helps organizations to make their product/brand popular. Internationally, advertisement is now considered as one of the key factors for the success of any business and large amount of investment is done on advertisement. Thus, it has become inevitable for organizations to know and understand the consumer‟s attitude towards the advertising because a positive attitude towards any advertisement for a product /brand will result in positive attitude towards the product which ultimately strengthen the purchase intention of the consumers. While economic development has a tremendous impact on consumer attitudes and sophistication, researchers have studied the effect of other factors that may account for the difference in the consumer‟s attitude towards marketing. Chan, Yau and Chan (1990) found that demographic variables significantly affect consumer‟s attitude in the same way across tow samples. Crellin (1998) found a significant generational split between those respective and unreceptive to advertising from an audience study in China. However, it is very difficult to say as to which aspects of advertising have the greatest influence on the consumer‟s attitude followed by purchase decision. In today‟s business world, advertisement is considered as the most imperative tool to market any product. Marketers over the period of time have become more and more responsive International Journal of Contemporary Research and Review, Vol. 8, Issue. 4, Page no: ME 20100-20108 doi: http://dx.doi.org/10.15520/ijcrr/2017/8/04/146 Dr. Mairaj Salim, et al, Influence of Advertising on Attitude of Young Indian Consumers –An Empirical Study towards the medium of advertisement ie newspapers, magazines, radio, television etc because by using different medium of advertisement and thereby developing positive attitude, the customers are made to believe in the product/brand and helps ultimately to build confidence towards the product thereby improving the buying behavior. Thus, attitude leads to the formation of thinking based on either acceptance or rejection. Attitude change means that the individual assessment manner changes from one value to the other. Nonetheless, there is huge impact on the attitude of Indian consumers due to rapid economic development the earlier researches have also been done to study the effect of the other factors too that may be accorded for the difference in consumer‟s attitude. Varadarajan and Thirunarayana (1990) examined consumer‟s attitude towards marketing practices, consumerism, and government regulations. They found a high level of consumer skepticism regarding the operating philosophy of business, discontent with marketing practice, and support for consumer movement and greater government regulation. To provide additional empirical insight into the validity of consumerism life cycle concept, Thus, Varadarajan and Thirunarayana (1990) concluded that despite wide variations in the volume of advertising and different levels of government regulation of advertising from one country to another, negative views about advertising seem to be a universal phenomenon, and perhaps more so in developing economics. The Indian media and Entertainment (M&E) industry has a massive reach. The industry in largely driven by increased digitization‟s, growth of regional media, robust film industry and emergence of new media for content delivery. The Indian M&E industry is projected to grow 11.8 percent to clock revenues worth Rs 91,700 crores (US$ 16 billion) in 2013 according to an industry report. While conventional media such as television (TV) print and radio continue to be dominant segments, animation, visual effects, films and music are also posting strong progress owing to content and the benefits of digitization. Moreover, the governments drive towards digitalization and addressability for cable television by 2014 is expected to provide a boost to direct-to-home (DTH) and digital cable growth. In, Indian context, all the young consumers within the age of 35 yrs felt positive about advertising and appreciate the benefits of advertising for providing information and educating the masses however, there is not much appreciation by the elderly consumers, considering the importance of consumer‟s attitude in consumer buying behavior, and companies are focusing on conducting research to study. 2. Literature Review: B.N. Anand & R.Shachar (2009), mentioned that market opportunities and economic transformation are the main reasons for the change in life style and behavioral pattern of an individual. According to Byzalov et al (2004), when the consumer is exposed to advertisement, he becomes more informed and educated about the product and thus this lessens the risk associated with the product. Richens (1991), stated that the support to enhance consumers self image is through advertising. Rossiter(1977) said that positive attitude of a person towards advertising leads to brand awareness among the consumers. Attitude is considered to be one of the major determinants towards any advertisement and is considered as core concept. Lutz (1985). According to Sicilla,Ruiz & Reynolds (2006), when an advertisement is likely to hold the attention and enjoyed by the consumer generally forms positive attitude towards the product or brand. Solomon (2003) listed important determinants which results in affecting the advertisement attitude such as the consumer‟s mood, feelings evoked by advertisement, reaction triggered by advertisement on the part of consumers. Hamilton et.al.(2009) stated that when a company participates in advertisement programs, the impact of organization‟s performance is highlighted.Hanif et al (2009) revealed that the basic reason for consumer satisfaction is when his needs and desires are met followed by reasonable pricing, better services provided. According to De Mooij,M (2003) ,the cultural differences that leads to variation in consumer choices which results in different consumption pattern is due to the divergence in consumer behavior. Barroso,A.(2008), the increase in sales of any product is due to the awareness of product‟s value which is the result of an efficient advertisement. Kacen et al (2002) mentioned that emerging ecommerce has opened doors to the consumers for impulsive purchasing opportunities but cultural aspects are deterrent to consumer‟s impulsive purchasing attitude. Raj,S.P.(1982) examined that when the advertisement for the product increases, the consumer purchase also increases and this 20101 International Journal of Contemporary Research and Review, Vol. 8, Issue. 4, Page no: ME 20100-20108 doi: http://dx.doi.org/10.15520/ijcrr/2017/8/04/146 Dr. Mairaj Salim, et al, Influence of Advertising on Attitude of Young Indian Consumers –An Empirical Study happens due to high loyalty. According to Sirgy et al (1982), the important predictor for the self concept of consumer about the product is consumer attitude and preference about the product. Ackerbergm,D.A.(2003), also revealed that the great source for product learning is advertising and this process is the result of either informative advertisement, prestige or image. Brackett and Carr (2001) clarifies that media and advertising are separate. Ducoffe (1996) argues that the value of advertising has important influence of the media context. (Kanso & Nelson, 2007),due to globalization, more and more emphasis should be put on further researches to explore the significance of advertising in products including consumer‟s attitude. (Bauer and Geryser, 1968; Becker, Martino and Towners, 1976; Larkin, 1979) has emphasized that the advertisement which are telecasted on television are considered to be less informative as television has low credibility as per the earlier studies done also .According to Tai (2007), mentioned that due to technological advancement, more information cn be gathered of the competitors which helps in developing a strong brand name of organizations /products 3. Objective of the Study: The objective of the study is to examine the influence of advertising on the attitude of the consumers towards psychology of consumers, entertainment, message information, interactivity with the advertisement. 4. Significance of Study: This research will help marketers to their products keeping in mind the culture of the area ie local, domestic or international and thus becomes important for them to determine the factors which are responsible to affect the attitude of the consumers in order to exploit the behavior of the consumers towards advertisement which in turn will influence their buying patterns. 5. Conceptual Framework: Based on the conceptual framework, six independent variables were developed, and presented in the subsequent section. The conceptual framework was designed with the dependent variable - attitude towards advertising – being influenced positively or negatively by the independent variables, based on these conjectures and the arguments to support the conjectures. The independent variables include consumer manipulation, product information, hedonic/pleasure, economic condition, social integration and materialism (see Figure 1). These were developed based on the review of relevant literature. Consumer Psychology In formativeness Motiv e Attitude Entertainment Income Status Public Interactivity Materialism Figure 1. Conceptual framework 3. Research Ques: How does the advertising influence the attitude of consumers in India What attributes in advertising do consumers perceive as valuable How do consumer –based factors influence the Indian consumers‟ attitude towards advertising 4. Hypotheses: H1: Consumer Psychology will have a negative influence on attitude towards advertising H2: Informativeness will have a positive influence on attitude towards advertising H3: Entertainment will have a positive influence on attitude towards advertising H4: Good Income Status will have a positive influence on attitude towards advertising H5: Public Interactivity will have a positive influence on attitude towards advertising. H6: Materialism will have positive Influence towards Advertising. 5. Research Methodology: The questionnaire was divided into two parts: Part A and Part B. Part A solicited responses on participants‟ background and overall knowledge on the subject matter. Part B of the questionnaire consisted of questions on the conceptual variables. Each variable comprised about two to five questions/statements. We used a five-point Likert scale that ranges from 1 = “Strongly Disagree” to 5 = “Strongly Agree”. Prior research employed similar measurement (see Haque et al., 2007; Kwek, Tan & Lau, 2010; Lee, 2009; Eze, Tan & 20102 International Journal of Contemporary Research and Review, Vol. 8, Issue. 4, Page no: ME 20100-20108 doi: http://dx.doi.org/10.15520/ijcrr/2017/8/04/146 Dr. Mairaj Salim, et al, Influence of Advertising on Attitude of Young Indian Consumers –An Empirical Study Yeo, 2012; Eze, Chin & Lee, 2011). We employed convenience-sampling method to select 300 participants in this study because there was no population frame for the prospective participants (Sekaran, 2003). Munusamy and Wong (2007) used similar method in their research. Subsequently, we distributed the questionnaire to young faculty members, who were between 22-40 years old. We used personal administration method to collect the data. We chose personal administration method for data collection because it is widely used in surveys of this nature and, particularly it helps in achieving the objectives of this paper (Lee, Eze & Ndubisi, 2011; Eze & Kam, 2001). 6. Data Analysis and Findings: Out of 300 questionnaires 81% i.e. 242 were returned out of which 5 were incomplete amounting to 79% valid responses. We used Statistical Package for Social Sciences (SPSS) program to process the data for this study. The next section presents the descriptive and the inferential analysis and results. Table 1. Respondents’ demographic profile Frequency Percent Cumulative (%) Gender: Male 94 39.66 39.66 Female 143 60.34 100 Age: 22-25 47 19.93 19.93 25-29 170 71.73 91.66 30-34 18 7.60 99.26 35-39 1 0.42 99.68 40 and above 1 0.42 100 55 78.06 94.51 Education level : Diploma / Undergraduate Graduate 161 5.06 99.57 21 0.42 100 Rs5000-10000 181 76.37 76.37 Rs 100001-20000 31 13.08 89.45 Rs 20001-30000 12 5.06 94.51 Postgraduate (MBA / M.Sc. / M. Phil. / PhD) Income Level: 20103 International Journal of Contemporary Research and Review, Vol. 8, Issue. 4, Page no: ME 20100-20108 doi: http://dx.doi.org/10.15520/ijcrr/2017/8/04/146 Dr. Mairaj Salim, et al, Influence of Advertising on Attitude of Young Indian Consumers –An Empirical Study Rs 30001-40000 6 2.53 97.04 Rs 40001and above 7 2.95 100 Television 135 56.96 56.96 Newspaper 33 13.08 70.88 Magazine 19 8.01 78.89 Billboard 7 2.95 81.84 Radio 5 2.10 83.94 38 16.03 100 45 18.99 18.99 85 35.86 54.85 42 17.72 72.57 65 27.43 100 Positive response 52 21.94 21.94 Neutral 147 62.03 83.97 Negative response 38 16.03 100 Types of effective advertisement: Internet Number of times to encounter advertisement: 0-2 times 3-5 times 6-8 times 8 times and above Response towards advertisement: Table 1 illustrates the demographic profile of the respondents, who participated in this study. Based on the figures in the table, majority of the respondents were female (60.3%) compared with the male respondents, which was 39.66%. In addition, respondents within the age group of 25 to 29 years old emerged with the highest number of participants at 71.73%. The highest number of respondents in terms of education level came from the undergraduates or diploma level category at 78.06%. In addition, most of the respondents (76.37%) earn Rs 5001 to Rs 10,000, monthly, . Majority of the respondents agree that TV is the most effective source of advertising (56.96%). In addition, the respondents encounter advertisements 3 to 5 times in a day (35.86%). Lastly, majority of the respondents, (61.8%), indicated neutral response to any encounter advertisement. 20104 International Journal of Contemporary Research and Review, Vol. 8, Issue. 4, Page no: ME 20100-20108 doi: http://dx.doi.org/10.15520/ijcrr/2017/8/04/146 Dr. Mairaj Salim, et al, Influence of Advertising on Attitude of Young Indian Consumers –An Empirical Study Table 2.Mean standard deviation and reliability value for variables Std. ID Variable Name Mean N (items) Cronbach‟s Alpha 2 5 5 2 4 5 6 0.55 0.73 0.75 0.53 0.77 0.79 0.70 Deviation CP P E IS PI M ATA Consumer Psychology Informativeness Entertainment Income Status Public Interactivity Materialism Attitudes towards Advertising 2.69 3.87 3.53 3.45 3.43 3.36 3.55 Table 2 presents the mean values, standard deviation values, and the number of items for each variable. For independent variables, In formativeness yielded the highest mean (I=3.87), followed by Entertainment (E=3.53), Income Status (IS=3.45), Public Interactivity (PI=3.43), Materialism (M=3.36), and Consumer Psychology (CP=2.69). Since all variables (except CP) yielded mean value more than 3, we can conclude that the respondents agree with these factors are useful in assessing consumers‟ attitude towards advertising. In addition, consumer Psychology (CP) yielded a mean value of 2.69, which indicates that the respondents tend to be neutral on the variable. Table 2 also depicts the Cranach‟s Alpha values 1.10 0.80 0.81 0.83 0.83 0.98 0.84 of the independent and dependent variables in this study. Cronbach‟s Alpha was used to verify the internal consistency of the variable item. Nunn ally (1978) indicated that the value for Cranach‟s Alpha of 0.7 or higher is considered acceptable. In Table, all variables yielded value more than 0.70, except Consumer Psychology and Income Status. The results indicated that the Cronbach‟s Alpha value for Consumer Psychology is 0.550 and for Income Status is 0.53. Cronbach (1951) stated that a value higher than 0.50 was a satisfactory level of good internal consistency, Therefore, the reliability analysis for all variables in this study are still acceptable. Table 3. Factor analysis for each item: Component CP1 CP2 I1 I2 I3 I4 I5 E1 E2 E3 E4 E5 IS1 IS2 1 0.841 0.841 2 3 4 5 6 0.579 0.684 0.699 0.822 0.738 0.692 0.646 0.754 0.757 0.713 0.835 0.835 20105 International Journal of Contemporary Research and Review, Vol. 8, Issue. 4, Page no: ME 20100-20108 doi: http://dx.doi.org/10.15520/ijcrr/2017/8/04/146 Dr. Mairaj Salim, et al, Influence of Advertising on Attitude of Young Indian Consumers –An Empirical Study PI1 PI2 PI3 PI4 M1 M2 M3 M4 M5 0.823 0.833 0.748 0.700 0.697 0.790 0.820 0.689 0.740 In addition, during factor analysis, items were retained according to the following criteria: (i) factor loadings greater than 0.5 and (ii) no crossloading of items. In other words, items were dropped where they have a loading of less than 0.5 or where their loadings are greater than 0.5 on two or more factors (King & Teo, 1996; Eze, 2008). As shown in Table , the factor loading for each item is greater than 0.50 and loads into its intended construct. Table 4.Pearson correlation coefficient matrix CP I E IS PI M ATA CP I E IS PI 1.000 -0.030 -0.024 -0.072 0.054 -0.222** -0.142* -0.030 1.000 0.368** 0.331** 0.409** 0.176** 0.431** -0.024 0.368** 1.000 0.146* 0.346** 0.106 0.403** -0.072 0.331** 0.146* 1.000 0.325** 0.209** 0.391** 0.054 0.409** 0.346** 0.325** 1.000 0.316** 0.334** M ATA -0.222** 0.176** 0.106 0.209** 0.316** 1.000 0.279** -0.142* 0.431** 0.403** 0.391** 0.334** 0.279** 1.000 ** Correlation is significant at the 0.01 level * Correlation is significant at the 0.05 level Table 4 reveals the correlation matrix of the conceptual variables. A two-tail test at 0.05 significance level indicates that there are positive relationships among the independent variables and the dependent variable, except for consumer Psychology (CP). Consumer Psychology (CP) was found to be negatively related to attitude towards advertising, which may have some implications for the first hypothesis as the regression analysis indicates. Table 5. Multiple regression analysis (ANOVA Test) Model 1 Regression Residual Total Sum of Squares 21.517 39.607 61.124 According to Field (2009), a key purpose of ANOVA test is to show whether the model is df 6 210 216 Mean Square 3.586 0.189 F 19.014 Sig. 0.000a significantly better at predicting the dependent variable or using the means. In Table 5, the F20106 International Journal of Contemporary Research and Review, Vol. 8, Issue. 4, Page no: ME 20100-20108 doi: http://dx.doi.org/10.15520/ijcrr/2017/8/04/146 Dr. Mairaj Salim, et al, Influence of Advertising on Attitude of Young Indian Consumers –An Empirical Study value (19.014) is large with a small pvalue=0.000<0.05. Hence, it can conclude that at least one of the six independent variables can be used to model young adults attitude towards advertising in this study. Table 6. Multiple regression analysis (regression coefficients) Unstandardized Standardized Coefficients Coefficients Collinearity Statistics Model B 1 (Constant) CP I E IS PI M 0.944 -0.050 0.205 0.242 0.183 0.036 0.097 Std. Error 0.292 0.034 0.062 0.057 0.047 0.056 0.045 T Sig. Beta -0.086 0.215 0.259 0.234 0.043 0.132 Tolerance 3.233 -1.484 3.319 4.207 3.851 0.636 2.176 0.001 0.139 0.001 0.000 0.000 0.525 0.031 0.927 0.733 0.817 0.834 0.689 0.834 VIF 1.079 1.364 1.224 1.200 1.451 1.199 Attitude towards advertising = 0.944 + (-0.050 Consumer Psychology) + 0.205 (In formativeness) + 0.242 (Entertainment) + 0.183 (Income Status) + 0.036 (Public Interactivity) + 0.097 (Materialism). 7. Discussion: Based on the findings in this study, consumer psychology correlated negatively with attitudes towards advertising, which indicates that negative belief towards consumer Psychology would result in an increase in negative attitudes towards advertising. The results also indicate that there is a positive effect of Informativeness about product on attitudes towards advertising with a p-value of 0.001. Petrovici et al. (2007) arrived at similar conclusion in their study on personal uses and perceived social and economic effects of advertising in Bulgaria and Romania. In addition, hypothesis 3 was supported with a p -value of 0.000. This means, this variable is important in designing adverting campaign for businesses, because belief in Entertainment, tend to generate positive attitudes towards advertising. Tsang and Tse (2005) reached similar conclusion in their study on a hedonic model for effective web marketing: an examination. Income had a positive influence on attitudes towards advertising with a p-value of 0.000. This Finding indicates that there is a significant effect of economic situations in a particular society with respect to consumers‟ attitude towards advertising. Hence, hypothesis 4 is supported. Based on the analysis, the hypothesis between interactivity and attitude towards advertising emerged insignificant with a p -value of 0.525. Following this outcome, hypothesis 5, was not supported. This finding is inconsistent with the findings of Pollay and Mittal (1993), who reported that public integration would have a positive influence on attitude towards advertising. Finally, materialism has a positive influence on attitude towards Advertising with a p-value of 0.031. The findings from this study would assist future researches to obtain additional pieces of information, which were unavailable in previous studies. In addition, researchers who may be interested in conducting similar studies would find this paper useful as it would serve as a frame of reference on the market trends, and market conditions in India with respect to faculty members. References: 1. Adeolu B. Ayanwale, Taiwo Alimi andMatthew A. Ayanbimipe (2005). TheInfluenceof Advertising on Consumer Brand Preference. 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